- The Govt of Pakistan and Russia have agreed upon and signed the Head of Terms of the project
- Shareholding and corporate structure finalised
- This project has been suffering from delays since 2015 but effective progress made today
Both companies reached consensus on the Heads of Terms and on shareholding agreement with Pakistan’s share of 74% and Russian share of 26%.
The intergovernmental agreement (IGA) of the project was signed in 2015 but was not implemented.
The project had been delayed since then as construction could not be initiated due to US sanctions on Russian firms.
Pakistan and Russia signed an amended IGA in May this year to start construction work on project.
The project faced delay since 2015, and now the agreement had been signed for technical cooperation in the construction of the pipeline that would be completed by 2023 costing $2.5 billion