Press Release

OPEC Fund supports expansion of Pakistan's Karachi Port

42/2005 April 21, 2005, Vienna, Austria

A private sector loan agreement for US$6 million was signed today between the OPEC Fund for International Development and Pakistan International Container Terminal (PICT) for the second phase of a project to expand container handling facilities at Karachi Port. Phase One, which was recently completed, was also co-financed with Fund support.

The port sector is one of the most important in Pakistan. As the dominant facility in the country, Karachi Port handles 60% of international trade and 80% of all container volume.

PICT was established in 2002 to finance, construct and operate a common user container terminal at Karachi Port, with the aim of increasing efficiency, streamlining costs and stimulating trade.

Phase One of the project saw the procurement and installation of two ship-to-shore gantry cranes, together with rubber-tyre cranes and supporting equipment, as well as accompanying civil works. Phase two of the expansion includes the acquisition of one additional gantry crane and a variety of container handling equipment, along with the construction of new customs and administrative buildings. The expanded facilities are expected to significantly increase the terminal’s handling capacity and lead to substantial benefits for the economy.

This project represents the Fund’s second private sector loan to Pakistan. In addition, the Fund has approved over US$240 million towards a wide range of public sector projects and for balance of payments support. Pakistan has also been the recipient of numerous grants from the Fund. An agreement for the encouragement and protection of investment entered into force between the Fund and the government of Pakistan in February 2001.

Today’s agreement was signed in Vienna on behalf of Pakistan International Container Terminal by Captain Haleem A. Siddiqui, Chairman of the Board of Directors, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.