India and Iran are set to ink the final agreement on the development of Iran’s Chabahar port. The agreement which relates to the phase I development of the port will be signed during the Maritime India Summit 2016 slated for 14-16 April in Mumbai.
Iran’s Port and Maritime Authority has awarded a 10-year port development project to Iranian firm Arya Bandar, which will in turn sign an agreement with Indian Ports Global (IPGPL).
IPGPL, a joint venture of Jawaharlal Nehru Port Trust (JNPT) and Kandla port, will install the equipment to develop two berths and operate them for a 10-year period before handing the equipment back to Iran. It will operate the two berths - one for containers and the other for a multipurpose cargo facility - through an SPV, which will have an Iranian partner. All cargo except petroleum products will be handled in these terminals.
The port will be commercially operated under Iranian rules. The External Affairs Ministry will provide USD 85 million to IPGPL to acquire the modernization equipment and another USD 5 million as bank guarantee for the project. EXIM Bank has also extended a line of credit of USD 150 million to the Iranian Port Authority for the project.
