Islamabad:
Pakistan has finished a financing agreement of $ 3.5 billion with six main international financial institutions for the development of the historical Mining Project Reko DIQ in Baluchistan, a milestone for one of the most important mineral companies in the country.
According to official sources, the financing package includes commitments of leading global lenders such as the US Exim Bank, Asian Development Bank, International Financial Institutions, International Development Association and the European Bank.
The agreement was signed by the project sponsors, the Federal Government and Barrick Gold Corporation, while the final approval of the lenders of the lenders is still pending. Once clarified, the disbursement process is expected to begin within 45 to 90 days, subject to the fulfillment of the agreed conditions.
According to the terms of the agreement, the lenders will be awarded a grace period of four to five years, with loans distributed in a 12 -year schedule. The financing will have a single digit interest rate, offering Pakistan a relatively favorable loan framework.
The authorities said that if all the previous requirements are completed in time, the first section of funds could be released within two months.
The key interested parties in the project include Barrick Gold Corporation, the Baluchistan government, the Limited Petroleum and Gas Development Company and Pakistan Petroleum Limited.
According to the agreed capital structure, Barrick Gold will retain a 55 percent participation, while OGDCL and PPL will jointly have 27.7 percent. Baluchistan will maintain a capital participation of 16.6 percent.
With an estimated total cost of around $ 7.7 billion, the Reko DIQ project is expected to begin production at the end of 2028.
According to official estimates, the project could generate approximately $ 53 billion in total income during your life. It is projected that Balochistan will receive $ 11 billion in fiscal revenues, $ 6 billion as its provincial action and $ 9 billion through the capital held by Baluchistan Mineral Resources Limited.
The federal government is expected to win around $ 11 billion in tax revenues.
