ECC approves $ 200 million equity share for TAPI pipeline project

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ISLAMABAD, Dec 18 (APP): The Economic Coordination Committee (ECC) of the Cabinet on Friday accorded approval for $ 200 million equity share of Pakistan for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.

The ECC, which met with Federal Finance Minister Senator Mohammad Ishaq Dar in the chair, gave the approval for $ 200 million equity share of Pakistan in the TAPI Gas Pipeline Project Company on the proposal of Ministry of Petroleum and Natural Resources.

It also approved release of US$ 12 million out of this share for the preliminary works in four equal tranches starting from January 2016 as per the disbursement plan.

Approval for draft shareholders agreement, investment agreements and authorization for ISGS to sign these agreements was also given by the ECC.

It may be mentioned that overall cost of TAPI project is $ 10 billion. Turkeministan being the consortium leader for the project, has agreed to contribute 85% of equity.

On a proposal submitted by Aviation Division, the ECC also granted approval for guarantee support of Rs 4.4 billion for Pakistan International Airlines enabling the airline to improve its products and services.

The ECC also approved a proposal by Privatization Division for payment of two-month salaries (Rs. 64 million) to the employees of Pakistan Machine Tool Factory (PMTF) Karachi.