07 January 1994

The offshore Faysal Islamic Bank of Bahrain signed a $100 million short- term Islamic trade financing facility with the Rice Export Corporation of Pakistan on 13 December (MEED 10:12:93). The morabaha facility is for six months. Faysal acted as modareb, or arranger, for a syndicate of 21 international Islamic and conventional financial institutions. The co- modarebs were Dubai Islamic Bank, Gulf International Bank, Habib Bank, Islamic Development Bank, Islamic Investment Company of the Gulf in Bahrain and Sharjah, the National Bank of Pakistan in Bahrain and London, Saudi British Bank, and Saudi National Commercial Bank.

The local Tri-Star Power was to offer shares worth Rs 75 million ($2.5 million) to the public on 20 December for its 10-MW power plant at Karachi. This will double the company's paid-up capital to Rs 150 million ($5 million). The generated power is to go to shareholding companies initially, which include other companies of the local Tri-Star group and other Karachi- based industries. Civil works have been completed and the equipment, bought in the US and Germany, has been installed, Tri-Star Power says. It will take advantage of the exemption on profit and gains tax granted by the government to private power companies.

Bid have been invited by 15 January to build private on-shore amenities for Gwadar fishing harbour. The amenities will comprise an ice plant, cold storage units, a warehouse, and an oil storage and distribution depot. The Communications Ministry contract will be on a build, operate and transfer (BOT) basis, with an operation period of 20 years. Bids have also been invited by 15 January for the operation and maintenance of the port for 20 years, with the possibility of a further extension (see Tenders).

More details have emerged about the refinery to be built in joint venture with Iran discussed during a visit by Prime Minister Benazir Bhutto to Tehran in December (MEED 24:12:93). The refinery's planned capacity is 6 million tonnes a year. It is to be built in Baluchistan and is scheduled to go on stream in 1997. Industry sources estimate the cost at $1,200 million. The project has been discussed since 1991.

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