06-06-2009, 07:47 AM
MUSHTAQ GHUMMA
ISLAMABAD (June 06 2009): Economic Co-ordination Committee (ECC) has reportedly refused to give free hand to Industries Ministry for provision of incentives to an Australian company, Progressive International Party Limited, which will establish Export Processing Zone Authority (EPZA) Tech Tower in Karachi, official sources told Business Recorder on Friday.
On May 19, the ECC was informed that the EPZA carried out a survey and found that the information technology (IT) sector's growth had been constrained due to non-availability of quality business, space and infrastructure. To accelerate growth in this sector, the authority was of the opinion that development of necessary infrastructure would help and space could be developed on the basis of build, operate and transfer (BOT) arrangements.
The sponsor company will design, plan, construct, market and operate as space provider on the basis of charging rentals till the end of 50 years of concession period. In return, the company will share 10 percent of rentals with the EPZA. The developed assets will revert to the EPZA on the expiry of the concession period.
Accordingly, an advertisement was published in the national and international press, offering land with the EPZA incentives and conditions. In response, Progressive International Party Ltd of Australia submitted a responsive proposal.
It is further elaborated that the proposed scheme would be an integral part of the EPZA and be treated as a "stand-alone" unit for operational and financial controls and monitoring. The authority, therefore, proposed that six acres of land free of cost/rent sharing basis for a period of 50 years be granted to them and allowed all permissible EPZA incentives for establishment of EPZA Tech Tower Project.
The ECC considered the proposal, submitted by Progressive International Party Ltd, and observed that initially the company should be advised to start construction of the technology tower and after that the proposal of further extension in lease would be considered.
It was further suggested that initially the company be provided land for a period of five years and they should be directed to start construction work at the site. It was also stated that the final lease agreement and taxes/duties exemption package would be brought before the ECC after five years.
The sources said it had been decided that six acres of land would be provided to the firm free of cost/rent sharing basis for a period of 50 years and allow all permissible EPZA incentives to Progressive International Party for establishment of EPZA Tech Tower Project.
The ECC also decided that the investor might be allowed five years to complete the project, failing which the agreement would stand automatically cancelled. The sources said the final lease agreement along with taxes/duties exemption package would be presented before the ECC for approval.
http://www.brecorder.com/index.php?id=920266
ISLAMABAD (June 06 2009): Economic Co-ordination Committee (ECC) has reportedly refused to give free hand to Industries Ministry for provision of incentives to an Australian company, Progressive International Party Limited, which will establish Export Processing Zone Authority (EPZA) Tech Tower in Karachi, official sources told Business Recorder on Friday.
On May 19, the ECC was informed that the EPZA carried out a survey and found that the information technology (IT) sector's growth had been constrained due to non-availability of quality business, space and infrastructure. To accelerate growth in this sector, the authority was of the opinion that development of necessary infrastructure would help and space could be developed on the basis of build, operate and transfer (BOT) arrangements.
The sponsor company will design, plan, construct, market and operate as space provider on the basis of charging rentals till the end of 50 years of concession period. In return, the company will share 10 percent of rentals with the EPZA. The developed assets will revert to the EPZA on the expiry of the concession period.
Accordingly, an advertisement was published in the national and international press, offering land with the EPZA incentives and conditions. In response, Progressive International Party Ltd of Australia submitted a responsive proposal.
It is further elaborated that the proposed scheme would be an integral part of the EPZA and be treated as a "stand-alone" unit for operational and financial controls and monitoring. The authority, therefore, proposed that six acres of land free of cost/rent sharing basis for a period of 50 years be granted to them and allowed all permissible EPZA incentives for establishment of EPZA Tech Tower Project.
The ECC considered the proposal, submitted by Progressive International Party Ltd, and observed that initially the company should be advised to start construction of the technology tower and after that the proposal of further extension in lease would be considered.
It was further suggested that initially the company be provided land for a period of five years and they should be directed to start construction work at the site. It was also stated that the final lease agreement and taxes/duties exemption package would be brought before the ECC after five years.
The sources said it had been decided that six acres of land would be provided to the firm free of cost/rent sharing basis for a period of 50 years and allow all permissible EPZA incentives to Progressive International Party for establishment of EPZA Tech Tower Project.
The ECC also decided that the investor might be allowed five years to complete the project, failing which the agreement would stand automatically cancelled. The sources said the final lease agreement along with taxes/duties exemption package would be presented before the ECC for approval.
http://www.brecorder.com/index.php?id=920266