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Pricing agreement inked for uninterrupted water supply to Gwadar Free ZoneBreaking

November 13, 2024

Islamabad, Nov. 13 (INP): In a major boost for Gwadar Free Zone, an agreement has been inked for a fixed-price agreement for uninterrupted water supply to local and foreign enterprises in North Free Zone. The agreement, a tripartite arrangement among Gwadar Port Authority (GPA), Gwadar Development Authority (GDA), and China Overseas Ports Holding Company (COPHC) — the operator of Gwadar Port and the Free Zone — establishes pricing terms based on two separate water supply sources in Gwadar.

Under the agreement, the competitive commercial price is fixed at $3.30 per ton from the first source: the fully operational 1.2 MGD seawater desalination plant that serves the North Free Zone.  A 11.3-kilometer water supply pipeline has already been laid for this purpose. The second water source, from the GDA’s airport water tank, will provide water at $1 per ton to the North Free Zone. 

The water tank, constructed at a cost of Rs 6 million, has already started storing water from Sawar Dam and Shadi Kor Dam.  GPA has laid a 5.5-kilometer pipeline to connect the water tank to the North Free Zone. A Gwadar Chamber of Commerce and Industry (GCCI) official told Gwadar Pro that the pricing agreement is a "breath of fresh air" for investors, as a reliable water supply is crucial for the smooth operation of businesses in the zone.  The development will foster new impetus for investors, helping mature their investment plans in Gwadar North Free Zone and contribute to Gwadar's economic growth, he added.

Credit: Independent News Pakistan (INP) — Pak-China