Islamabad: The Petroleum Division has sought input from the Law Division on Turkmenistan’s request to cover legislation under the Foreign Investment Promotion and Protection Act (FIPPA), 2022 For the investment he intends to make in Pakistan under the Transnation $10 billion TAPI gas pipeline project, The News reported on Friday.
The pipeline from Turkmenistan has to pass through Afghanistan, Pakistan and India. Turkmenistan will have 85% stake in the project while Afghanistan, Pakistan and India will have 5% of $ 200 million.
“ The Petroleum Division has sought the opinion of the Law Division and is awaiting a response to Turkmenistan’s request and then is in a position to strengthen its recommendations A senior Energy Ministry official told The News that the special investment facility was submitted to the council, ”.
“ Earlier, Turkmenistan’s demand was raised in the SIFC, which sought information from all stakeholders and SIFC.” Decided to make recommendations for the High Committee
The FIPPA law was passed by the government to increase special treatment for the protection of foreign investment in the Ricoh Deck project. The bill was passed by parliament to provide legal cover for the Ricoh Deck project، A copper and gold mine in Balochistan is being developed through a consortium of foreign companies.
The official said the coverage of the legislation given to the Ricoh Deck project was a special case and could not be extended to every investor.
“ If Afghanistan and India, which are also part of the TAPI gas pipeline project, cover the same legislation for Turkmenistan’s investment in the pipeline، So Pakistan can’t mind, ” said to the official.
Pakistan has already assured the protection of Turkmen investment with independent guarantees under the Host Government Agreement (HGA).
However, the official believes that if the pipeline project falls under FIPPA, 2022, This could then help Turkmenistan build the reputation of Turkmen gas companies for bank feasibility and loans.
Gas pipeline project worth $10 billion will be built and launched on 30%:70% equity and loan business plan. Out of 30% equity, Turkmenistan’s share is 85%, and Afghanistan, Pakistan and India each have a share of 5. Pakistan’s equity stands at $ 200 million.
The remaining 70% funding will be based on loans that the TAPI consortium will arrange from international financial institutions.
The project has been delayed by about 7 years, largely due to the failure of the financial blockade and the Taliban’s occupation of Afghanistan.
The Asian Development Bank (ADB) has halted efficiency and processing activities on the TAPI project until the Taliban-led government in Afghanistan has joined the United Nations and major The world is not recognized by economies.
However, Turkmenistan and Pakistan signed a Joint Implementation Plan (JIP) on June 9 this year to expedite work on the project in Islamabad.
Pakistan has suggested that Turkmenistan lay part of the gas line to Heart in Afghanistan to ensure ownership of the Taliban، Which will also help move the project forward.
