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Express Tribune
23-03-2025
- Business
- Express Tribune
Rs1.79 billion approved for Reko Diq security
Amid the deteriorating law and order situation in Balochistan, the government has approved funds for the security of the multibillion-dollar Reko Diq gold and copper project. The funds are intended to ensure the smooth operation of the Reko Diq project. In a recent meeting, the Economic Coordination Committee (ECC) approved Rs1.79 billion funds for the security of the Reko Diq project. The Ministry of Interior and Narcotics Control stated that the Frontier Corps Balochistan (South), a federal civil armed force, had been involved in border control, internal security, and maintaining law and order within its jurisdiction. Additionally, the force was tasked with apprehending illegal immigrants and carrying out counter-terrorism operations against miscreants and anti-state elements. A summary was submitted to the ECC through the Finance Division on January 14, 2025, seeking approval for a technical supplementary grant (TSC) of Rs1.792 billion to cover security expenses for the Reko Diq project. This request was based on the Security Services Framework Agreement (SSFA) between Reko Diq Mining Company (RDMC) and the Government of Pakistan, along with the MoU signed between RDMC and Frontier Corps Balochistan (South). The Finance Division approved an allocation of only Rs286.987 million. However, during its meeting on February 3, 2025, the ECC deferred the summary and instructed the Interior Division, Finance Division, Petroleum Division, and Frontier Corps Balochistan (South) to reconcile the actual amount needed for the technical supplementary grant. The committee also emphasized ensuring transparency in expenditures before resubmitting the case. In response to this directive, a meeting was convened on February 6, 2025, under the chairmanship of the interior secretary at the Ministry of Interior. During the discussion, the Finance Division's representative agreed in principle to support the request, provided it was clarified that the payment received from RDMC under the "support allowance" was not meant for the salaries or allowances of Frontier Corps personnel. The Ministry of Interior and Narcotics Control further stated that Headquarters Frontier Corps Balochistan (South), Turbat, had clarified the issue. According to the Security Services Framework Agreement (SSFA) and the MoU signed between the Government of Pakistan, Frontier Corps, and RDMC, the Licensee (RDMC) provided financial support to the Frontier Corps under the term "support allowance" to cover specific costs and expenses that would otherwise be incurred in fulfilling the mission. The recurring charges paid by RDMC do not cover the salaries of Frontier Corps personnel deployed for the security of the Reko Diq project. The approved funds will be disbursed through a TSC into a designated DDO cost centre named "Reko Diq Project Frontier Corps Balochistan (South)". All recurring and non-recurring expenses for project security will be managed through this dedicated cost centre. The existing budget of Headquarters Frontier Corps Balochistan (South) will not be utilized for expenditures related to Reko Diq project security. The Finance Division was requested to approve a TSC of Rs1.792 billion against the payment received from RDMC to ensure the smooth execution of the Reko Diq project. The Finance Division endorsed the proposal for submission to the ECC. The Ministry of Interior and Narcotics Control requested the ECC to approve the TSC of Rs1.792 billion, sourced from the payment received from RDMC for security charges. This approval is essential to ensure the smooth execution of the Reko Diq project while maintaining the security of foreign personnel. The funds, allocated under Demand No062 for the Combined Civil Armed Forces, will support Frontier Corps Balochistan (South) in meeting its operational and security-related needs. The ECC reviewed the summary submitted by the Ministry of Interior and Narcotics Control for the approval of TSC of Rs1.792 billion to cover security charges for the Reko Diq project. After consideration, the proposal was approved.
Express Tribune
17-02-2025
- Business
- Express Tribune
Funds sought for Reko Diq project
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.
