Funds sought for Reko Diq project

Express Tribune

17-02-2025

ISLAMABAD:
Reko Diq Mining Company has expressed concern over the government's inability to comply with obligations under the Security Services Framework Agreement (SSFA) and a memorandum of understanding (MoU).
Sources said that the government's failure to meet obligations under the SSFA and MoU forced Reko Diq Mining company to incur additional costs of $390,000. The Prime Minister's Office has requested timely disbursement of the amounts deposited by the mining company to Frontier Corps Balochistan (South).
The Interior Division, in a recent meeting of the Economic Coordination Committee (ECC), said that the Frontier Corps Balochistan (South) was engaged in various tasks such as border control.
Its task was also to ensure internal security and maintain law and order in its area of responsibility. The force was also tasked with apprehending illegal immigrants and countering terrorist activities, including securing the Reko Diq project.
As per the MoU/agreement executed with Reko Diq Mining Company, a one-time grant was required to be paid to the Frontier Corps Balochistan (South) to meet security arrangements according to the agreement.
After the deposit of the one-time grant by Reko Diq Mining Company, a summary was moved for payment of Rs2.801 billion.
The Finance Division recommended Rs1,952 million only for the procurement of vehicles, protective gear, security assemblers and construction of accommodation, while Rs848.6 million was outstanding.
The mining company has deposited Rs943.709 million as the second installment of the one-time grant and recurring charges for the period from March 2024 to October 2024.
The Interior Division briefed the meeting that a request had been made to the Finance Division for approval of a technical supplementary grant of Rs1.792 billion.
However, the Finance Division supported the allocation of additional funds (technical supplementary grant) amounting to Rs257 million to cover non-recurring expenditures for the procurement of vehicles, protective gear and the construction of accommodation.
The Finance Division advised that the Interior Division re-initiate the request, stating that heavy charges were being incurred daily for petroleum products and repair and maintenance of vehicles deployed for the security of the project, which could not be covered by the regular budget allocation, as it was already much lower than the actual requirement.
Similarly, due to the unavailability of regular constructed accommodation in the project area, heavy charges were incurred for hiring accommodation. Around Rs62.728 million owed to the Frontier Corps Balochistan (South) by the Finance Division has still not been paid.
Additionally, food and medical facilities for troops deployed for the security of the project are required to be provided continuously without interruption, as the troops worked round the clock as per the terms of the agreement. Therefore, special arrangements must be made for which Reko Diq Mining Company has provided funds.
The Interior Division requested the ECC to approve a technical supplementary grant of Rs1.792 billion for the smooth conduct of Reko Diq project activities, without compromising the security of foreign nationals, in favour of Frontier Corps Balochistan (South) to meet the required expenses.
During the ensuing discussion, it was informed by the Finance Division that since Frontier Corps Balochistan (South) already had a regular budget allocation, further deliberations were necessary to assess the viability of the proposal.
It was also noted that, in light of the operational requirements of FC Balochistan (South), the provision of funds was deemed necessary. However, FC was expected to present a detailed breakdown of the expenditure for further review.