Wednesday, 2 March 2016

Afghanistan to benefit from development of Iranian sea port Chabahar

Afghanistan Ministry of Commerce and Industries has welcomed India’s USD 156mn investment decision to develop Chabahar sea port. The Ministry’s spokesperson said Afghanistan would undoubtedly benefit from India’s investment in the Iranian Chabahar sea port. Regarding the port as profitable for India, Ministry’s spokesperson said the port would be advantageous for the entire region. Iran had allocated 54 hectares of land to Afghan merchants for transiting their products based on a MoU signed between Afghanistan and Tehran. He also noted that Afghan high-ranking officials headed by Abdullah Abdullah visited Chabahar encouraging Afghan merchants to use this port for export and import purposes. India is expected to equip and operate two berths in Chabahar port during the first phase of development. A total amount designated for these works is USD 86 million, plus an annual revenue expenditure of about USD 23 million on a ten-year lease. The countries also agreed that the ownership of equipment will be transferred to Iranian side on completion of 10 year period or for an extended period. To be operated by the India Ports Global Private Limited, the berths are expected to start working within a period of maximum 18 months.