The Executive Committee of National Economic Council (Ecnec) approved the construction of the New Gwadar International Airport at a sanctioned cost of Rs26.6 billion.
Called the apex project-sanctioning authority, Ecnec directed the Aviation Division to change the design of the Gwadar project in order to facilitate the landing and take-off of Boeing 777 aircraft.
The Planning Commission proposed to revise down the project cost to Rs21.5 billion, but because of further modifications in the design, it would cost no less than Rs26.6 billion, said an official of the Ministry of Finance.
As part of its $46.6 billion investment programme for Pakistan, China is expected to provide $662 million in assistance for developing land, airport and seaport facilities in Gwadar.
Oman has promised a grant of $17.5 million for the new airport while the Civil Aviation Authority will bear one-tenth of the total cost from its resources.
Initially, Ecnec had approved the Gwadar airport in January 2010 at a cost of Rs7.7 billion. Since then, the project has been facing delays because of its cost estimate and design structure. Until June last year, Rs803 million had been spent on its development.
The project featured on the PML-N led government’s priority list following a strategic partnership accord between Pakistan and China for establishing an economic corridor.
Under the partnership, China is planning to use the Gwadar Port for developing its western parts, which have been roiled by insurgency and separatist movement because of its largely underdeveloped status.
Ecnec gave its seal of approval to the construction of an expressway on the east bay of Gwadar Port at a cost of Rs14.1 billion. China will provide Rs13.5 billion for the project, part of the early harvest programme of the economic corridor.