Pakistan is unimpressed by AD Ports Groups’ USD 1.2 bn bid for Karachi port terminals: Pakistan’s cabinet has directed negotiators to “re-engage” with AD Ports Group to improve terms for concessions at Karachi’s port, according to a Finance Ministry statement. The country gave its initial approval last month for a framework agreement that would see Pakistan hand over two terminals at Karachi’s port. However, AD Ports Group’s USD 1.2 bn bid for a 25-year concession fell short of government expectations, according to a member of the negotiation committee cited by Pakistani daily Express Tribune.

AD Ports Group had initially floated an offer of USD 800 mn before adding on an extra USD 350 mn , Express Tribune cites sources as saying. That breaks down to USD 50 mn per annum for the 25-year agreement, which officials reportedly thought was too low, Express Tribune said.

Race against time: Pakistani officials were supposed to have met yesterday to review a final offer by AD Ports Group, Express Tribune added. Pakistan’s government is pushing to approve a contract at the last minute as the country’s National Assembly is set to be dissolved today, which could potentially nullify any progress made on the agreement so far, Dawn reports.

One or two terminals? Official ministry statements say one general bulk cargo terminal is under negotiation by AD Ports, though Pakistani reports mention an additional terminal that is reportedly set to be equipped to process foods, fertilizers, and other commodities.

25 years? An earlier report by Express Tribune had indicated a timeframe of five years with options for renewal, but it now says the contract will cover a 25-year period.

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