American President Lines (APL) of the US and International Container Terminals (ICT) of the Philippines have formally signed an implementation agreement with the Karachi Port Trust for construction of a new container terminal on a build-operate-transfer (BOT) basis. The agreement allows a six-month period for financing details to be finalised.

Muslim Commercial Bank and ANZ Grindlays Pakistan have been appointed arrangers of local cost finance.

The equipment supplier is also expected to be involved in the raising of finance for the project. Bank of America is the financial adviser.

The project will include two major contracts for the supply of equipment and construction. APL says that it is already in negotiations with a supplier and that a list of construction companies is being drawn up. Contracts are likely to be signed when financing has been put in place at the end of 1996. APL says. Completion is scheduled for mid-1998. The terminal will then be operated by a joint venture company formed by APL and ICT.