Pakistan Issues Tender for Iran-Pakistan Pipeline Project

Pakistan has issued tenders for the construction of 785 kilometre Iran-Pakistan natural gas pipeline. The successful bidder will be expected to complete the pipeline in two years.

The tenders were issued after solid commitment from Tehran to extend $500 million credit line for the project, a senior official at the ministry of petroleum and natural resources told The News.

A consortium headed by the Industrial and Commercial Bank of China (ICBC) has already refused to provide financial advisory services for the project mainly because of the severe US opposition.

The interested companies will be bound to submit their technical and financial bids for the project by June 8. Under the gas sales purchase agreement (GSPA), the official said, Pakistan is bound to have a first take of Iranian gas by December 2014 and in case of failure, it will have to pay $1 million per day to Iran as penalty.