$120 mn investments, $250 mn credit for Chabahar Port growth
PORTS & SHIPPING

$120 mn investments, $250 mn credit for Chabahar Port growth

The signing of the Long Term Bilateral Contract on Chabahar Port Operations occurred in the presence of HE Mehrdad Bazrpash, Minister of Roads & Urban Development, Iran, and India's Minister of Ports, Shipping, and Waterways Sarbananda Sonowal.

It has been learned that India's 10-year bilateral contract with Iran for the operation of Chabahar Port is expected to attract an investment of around $370 million. This investment consists of a direct contribution of $120 million from India for infrastructure development and a $250 million line of credit to Iran.

India's commitment of $120 million for port development will be utilised to acquire advanced equipment like rail-mounted quay cranes, rubber-tyred gantry cranes (also known as transtainers), reach stackers, and forklifts. Additionally, these funds will be allocated towards the improvement of associated infrastructure.

According to several officials familiar with the matter, the agreement, which spans a decade, has the potential for extension upon mutual agreement, signifying a medium-term objective for India as it proceeds with operations.

Moreover, significant concerns, including the absence of consensus on an arbitral framework, have been resolved. This issue stemmed from a previous deadlock in negotiations when Iran refused to accept an international arbitration framework, citing the necessity for a constitutional amendment. Conversely, India insisted on including the arbitration clause to ensure transparency in resolving disputes.

Officials stated that under the agreement signed, disputes requiring arbitration will be referred to the Singapore International Arbitration Centre.

Additionally, a concern regarding cargo movement emerged during the later stages of the negotiation process. According to sources, Iran insisted on a minimum guaranteed traffic (MGT), a standard provision in concession-based port agreements. Failure to meet the minimum cargo requirement could lead to penalties for the concessionaire.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

The signing of the Long Term Bilateral Contract on Chabahar Port Operations occurred in the presence of HE Mehrdad Bazrpash, Minister of Roads & Urban Development, Iran, and India's Minister of Ports, Shipping, and Waterways Sarbananda Sonowal. It has been learned that India's 10-year bilateral contract with Iran for the operation of Chabahar Port is expected to attract an investment of around $370 million. This investment consists of a direct contribution of $120 million from India for infrastructure development and a $250 million line of credit to Iran. India's commitment of $120 million for port development will be utilised to acquire advanced equipment like rail-mounted quay cranes, rubber-tyred gantry cranes (also known as transtainers), reach stackers, and forklifts. Additionally, these funds will be allocated towards the improvement of associated infrastructure. According to several officials familiar with the matter, the agreement, which spans a decade, has the potential for extension upon mutual agreement, signifying a medium-term objective for India as it proceeds with operations. Moreover, significant concerns, including the absence of consensus on an arbitral framework, have been resolved. This issue stemmed from a previous deadlock in negotiations when Iran refused to accept an international arbitration framework, citing the necessity for a constitutional amendment. Conversely, India insisted on including the arbitration clause to ensure transparency in resolving disputes. Officials stated that under the agreement signed, disputes requiring arbitration will be referred to the Singapore International Arbitration Centre. Additionally, a concern regarding cargo movement emerged during the later stages of the negotiation process. According to sources, Iran insisted on a minimum guaranteed traffic (MGT), a standard provision in concession-based port agreements. Failure to meet the minimum cargo requirement could lead to penalties for the concessionaire.

Next Story
Infrastructure Transport

Government Plans NHAI Bond Buyback

The government is reportedly planning a large-scale bond buyback program worth ?50,000 to ?70,000 crore to help reduce the debt burden of the National Highways Authority of India (NHAI). Over the past few years, NHAI has accumulated a significant amount of debt as it undertook numerous large-scale highway construction projects across the country. This bond buyback plan is intended to improve the organization’s financial health and provide relief from high-interest expenses. The bond buyback would involve repurchasing bonds from investors, allowing NHAI to reduce its outstanding liabilities. ..

Next Story
Infrastructure Transport

Bullet Train Project Receives Critical Supplies

More than 35,000 MT of rails, track construction machinery, and other essential supplies have been delivered for India's ambitious bullet train project, according to the National High-Speed Rail Corporation Limited (NHSRCL). This delivery marks a significant step forward for the Mumbai-Ahmedabad bullet train corridor, a high-priority project designed to introduce India’s first-ever high-speed rail network. The large-scale shipment includes rails from Japan and machinery that will support track laying and construction for the high-speed rail corridor. NHSRCL revealed that these supplies are c..

Next Story
Infrastructure Transport

SC clears Gaggal airport expansion project.

The Supreme Court's decision comes as a significant relief to the state government, which had been pushing for the expansion to enhance connectivity and tourism in the Kangra Valley. The project had been stalled following the Himachal Pradesh High Court’s intervention, primarily due to petitions filed by local farmers and environmental activists. They raised concerns over the acquisition of agricultural land and the potential environmental consequences of the airport’s expansion. The High Court had issued a stay on the project, pending further examination of these issues. However, with the..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000