ECC clears Reko-Diq final financial agreement with 14% increase in cost

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved definitive agreements and financial commitments related to the financing of the Reko Diq Project.
Presided over by the Finance Minister, Muhammad Aurangzeb the ECC considered a summary submitted by the Petroleum Division regarding approvals for definitive agreements and financial commitments related to the financing of the Reko Diq Project. The ECC approved the proposed final terms of the agreements, with the instruction that any material deviations in the final execution forms—if determined by the project’s legal and financial consultants and certified by the Reko Diq Mining Company—would be brought back to the ECC for approval.
The ECC also considered a summary submitted by the Ministry of Railways regarding a rail development agreement and bridge financing agreement with the Reko Diq Mining Company for the provision of bridge financing amounting to USD 390 million to lay a 1,350 km railway track for transporting large volumes of export material from the mines in Balochistan.
The ECC approved the proposal and directed the Ministry of Railways to share both agreement documents with the Finance Division for appraisal. It further instructed the Ministry of Railways and the Ministry of Finance to submit an update to the ECC by March next year on the execution and implementation of the project.
Speaking on the occasion, the Chair stated that the ECC’s approvals signify the government’s firm commitment to moving ahead with this landmark project which has the potential to transform the economic landscape of Balochistan and generate far-reaching benefits for the people of Pakistan.
He added that “the Reko Diq Project will not only unlock one of the world’s largest undeveloped copper-gold deposits but also catalyze job creation, infrastructure development, and long-term socio-economic uplift across the region.”
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Board of Investment Qaiser Ahmed Sheikh, federal secretaries and senior officials from concerned ministries, departments and regulatory institutions.