ISLAMABAD (December 09 2009): M/s General Electric Company (GE) is reportedly using the influence of a senior officer in the Presidency to get a contract in energy sector projects, sale of 150 locomotives to Pakistan Railways and installation of railway tracks, reveal official documents available with Business Recorder .
Shehzad Arbab, an Additional Secretary in the Presidency is the focal person who is pursuing the relevant Ministries and organisation like Private Power and Infrastructure Board (PPIB) and Railways Board. For this purpose, President Secretariat has forwarded a draft Memorandum of Understanding (MoU) to the key Energy Ministries and Railways for its review, the sources added.
However, it is still unclear who tailored the draft of the MoU and what will be the net worth of the contracts in which the American company is interested. According to the draft MoU, a copy of which has been obtained from the PPIB, it has been proposed that Pakistan and GE will work intensively and co-operatively to identify energy and transportation projects in which the firm will have technologies and solutions suitable to Pakistan, to secure sources of public and privatise funding to facilitate such funding as much as possible, and to facilitate, as appropriate, the ability of GE to participate in such projects.
M/s GE is interested in energy including renewable energy where GE will assist Pakistan in achieving its goal of generating 54,000 MW power by 2020 through diverse energy sources. It has also been proposed that Pakistan and GE will explore expanding the scope of this MoU to encompass other sectors vital to Pakistan's infrastructure and economic development, such as healthcare, water treatment, air transportation and financial services.
According to the draft MoU GE's commitments are as follows:
(a) GE is willing to cooperate with Pakistan to identify the areas of Energy and Transportation (i) those projects currently in progress and;
(ii) those that are being contemplated, on which GE engagement could be helpful;
(2) work with Pakistan to determine a path to meeting its energy goals, with a special focus on wind power and high efficiency gas turbines;
(3) help Pakistan develop its rail transportation system through expert consultations, addition of locomotives and rail signalling systems, and other advancements and solutions that GE can provide in the area;
(4) provide counsel and advice to Pakistan in the areas of energy and transportation where possible, including on such topics as electricity and rail system planning and management, fuel options for power generation, and regulatory and policy frameworks;
(5) assist Pakistan with identifying sources of funding necessary to implement projects in the areas of energy and transportation, including private and public sectors, export credit agencies, multilateral development banks and other international institutions;
(6) provide GE management and leadership training to such Pakistani middle and senior level managers and government officials in the energy and transportation sectors, where possible and as may be agreed;
(7) work with Pakistan to identify and possibly promote export opportunities and related jobs in the energy and transportation sectors and;
(8) localise support of GE products in Pakistan to the extent consistent with prudent business principles, GE business objectives, and Pakistan's economic development strategies.
Pakistan's commitments are as follows:
(i) provide support to the establishment and operation of GE facilities in Pakistan, consistent with Pakistani law and regulations, including the identification and implementation of incentives for GE investment in Pakistan, and help meet crucial infrastructural and policy needs for the successful implementation of agreed projects;
(ii) provide assistance in understanding and complying with relevant Pakistani regulations and policies in the areas of energy and transportation;
(iii) provide support for obtaining and securing funds for projects, including any sovereign guarantees, allow a stable investment climate for capital transfers and present opportunities for potential investors to participate in agreed projects;
(iv) provide assistance in facilitating dialogue between GE and Energy and Transportation ministers and other relevant officials and entities in Pakistan to enable and develop GE's advisory roles in the areas of energy and transportation;
(v) facilitate the issuance of work permits and visas for GE employees and contractors as needed to support the objectives of the MoU; and;
(vi) work with GE to facilitate the engagement of the United States and other governments to support and foster the expansion of commercial ties between Pakistan and GE.
TRANSPORTATION Indicative proposal submitted to Chairman Pakistan Railways on September 25, for 100 Nos 3000 HP and 50 Nos 2000 HP locos, financing through US Exim Bank, 100% Erie built.
GE is of the view that long -term maintenance agreement for proposed 150 locos for 18 years, will help PR have a highly reliable fleet with improved availability that translates to better asset utilisation. According to GE signalling modernisation will help PR increase its capacity achieve its "fast cargo" objectives, in addition to use of modern communications based signalling solutions that will enhance capacity without investing in double tracking.
Shehzad Arbab, an Additional Secretary in the Presidency is the focal person who is pursuing the relevant Ministries and organisation like Private Power and Infrastructure Board (PPIB) and Railways Board. For this purpose, President Secretariat has forwarded a draft Memorandum of Understanding (MoU) to the key Energy Ministries and Railways for its review, the sources added.
However, it is still unclear who tailored the draft of the MoU and what will be the net worth of the contracts in which the American company is interested. According to the draft MoU, a copy of which has been obtained from the PPIB, it has been proposed that Pakistan and GE will work intensively and co-operatively to identify energy and transportation projects in which the firm will have technologies and solutions suitable to Pakistan, to secure sources of public and privatise funding to facilitate such funding as much as possible, and to facilitate, as appropriate, the ability of GE to participate in such projects.
M/s GE is interested in energy including renewable energy where GE will assist Pakistan in achieving its goal of generating 54,000 MW power by 2020 through diverse energy sources. It has also been proposed that Pakistan and GE will explore expanding the scope of this MoU to encompass other sectors vital to Pakistan's infrastructure and economic development, such as healthcare, water treatment, air transportation and financial services.
According to the draft MoU GE's commitments are as follows:
(a) GE is willing to cooperate with Pakistan to identify the areas of Energy and Transportation (i) those projects currently in progress and;
(ii) those that are being contemplated, on which GE engagement could be helpful;
(2) work with Pakistan to determine a path to meeting its energy goals, with a special focus on wind power and high efficiency gas turbines;
(3) help Pakistan develop its rail transportation system through expert consultations, addition of locomotives and rail signalling systems, and other advancements and solutions that GE can provide in the area;
(4) provide counsel and advice to Pakistan in the areas of energy and transportation where possible, including on such topics as electricity and rail system planning and management, fuel options for power generation, and regulatory and policy frameworks;
(5) assist Pakistan with identifying sources of funding necessary to implement projects in the areas of energy and transportation, including private and public sectors, export credit agencies, multilateral development banks and other international institutions;
(6) provide GE management and leadership training to such Pakistani middle and senior level managers and government officials in the energy and transportation sectors, where possible and as may be agreed;
(7) work with Pakistan to identify and possibly promote export opportunities and related jobs in the energy and transportation sectors and;
(8) localise support of GE products in Pakistan to the extent consistent with prudent business principles, GE business objectives, and Pakistan's economic development strategies.
Pakistan's commitments are as follows:
(i) provide support to the establishment and operation of GE facilities in Pakistan, consistent with Pakistani law and regulations, including the identification and implementation of incentives for GE investment in Pakistan, and help meet crucial infrastructural and policy needs for the successful implementation of agreed projects;
(ii) provide assistance in understanding and complying with relevant Pakistani regulations and policies in the areas of energy and transportation;
(iii) provide support for obtaining and securing funds for projects, including any sovereign guarantees, allow a stable investment climate for capital transfers and present opportunities for potential investors to participate in agreed projects;
(iv) provide assistance in facilitating dialogue between GE and Energy and Transportation ministers and other relevant officials and entities in Pakistan to enable and develop GE's advisory roles in the areas of energy and transportation;
(v) facilitate the issuance of work permits and visas for GE employees and contractors as needed to support the objectives of the MoU; and;
(vi) work with GE to facilitate the engagement of the United States and other governments to support and foster the expansion of commercial ties between Pakistan and GE.
TRANSPORTATION Indicative proposal submitted to Chairman Pakistan Railways on September 25, for 100 Nos 3000 HP and 50 Nos 2000 HP locos, financing through US Exim Bank, 100% Erie built.
GE is of the view that long -term maintenance agreement for proposed 150 locos for 18 years, will help PR have a highly reliable fleet with improved availability that translates to better asset utilisation. According to GE signalling modernisation will help PR increase its capacity achieve its "fast cargo" objectives, in addition to use of modern communications based signalling solutions that will enhance capacity without investing in double tracking.
1 comment:
Steps to Root China's Investment out of Railways ........ Let's see what this government do
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