QICT’s new terminal to be opened after a delay of 2 years | Pakistan Today

QICT’s new terminal to be opened after a delay of 2 years

KARACHI: Inauguration of the second terminal of Qasim International Containers Terminal (QICT) is planned for next month after a delay of over 800 days. This impediment has caused a loss of Rs 30 million to Port Qasim Authority; however the authority is ignorant of the fact and will not hold the QICT for accountability.
The agreement of the said terminal was signed on August 14, 2006 and completion was expected on August 14, 2008. However, it has been delayed by around 27 months. Sources informed Pakistan Today that the project is worth $120 million and believed that the PQA should investigate the matter and fine the QICT. Sources added that establishment of the second terminal (extension) was awarded to QICT without tendering against the PEPRA 2004 rules.
Inexplicably, the PQA Chairman Admiral (r) Shafi denied delay of the project and said that he is unaware of a penalty to be levied against the QICT. He told Pakistan Today that ‘the said project was to be completed in September 2010 on the condition that PQA did the dredging and that the project has not undergone any delay.’
PQA should seize the performance guarantee provided by QICT to the authority. According to article 19.1.1 titled Completion and Liquidated Damages ‘QICT shall achieve the first completion date no later than twenty four (24) months (with an additional grace period of six months which shall not attract liquidated damages) from the date of effectiveness.’
Similarly, article 19.2.2 of the agreement under the title of Liquidated Damages says that ‘if completion date for phase-1 of the project is not achieved as provided for in the Implementation Schedule, then for each day or part thereof by which the completion date is delayed, QICT shall pay PQA liquidated damages at a rate of Rs 100,000 per day.’ The said article further says that ‘the aggregate ceiling of liquidated charges recoverable for delay in achieving the completion date for phase-1 of the project shall be Rs 30 million only.’
QICT has submitted performance bond of Rs 60 million and Rs 0.5 million on October 18, 2006 which was to be expired on August 14, 2007.
According to the letter of intent given for the said project ‘PQA will grant you to the exclusive and effective commission right and license to design, frame, insure, construct, test, commission, complete, operate, manage and maintain the dedicated second container terminal at PQ on build, operate, and transfer basis for 30 years, which is extendable for another 30 years.’



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