$2.5 b controversial deal in the pipeline for CPC funding

Ignoring these mysterious changes made in the memorandum, the cabinet gave approval to accept Global Concepts, Inc, informed sources said.

The conditions put forward by the Global Concepts in its funding proposal are now being evaluated and, once approved, would be the largest foreign loan facility to be obtained from a private international lender in recent history, a senior Treasury official said.

According to the Cabinet memorandum, this US company has offered the loan facility with a grace period of two years at an annual interest rate of 3 percent and handling charge of 7 percent with a repayment period of 12 years.

The CPC will have to pay $900 million as interest for 12 years while monthly interest is $75 million along with an additional $175 million as handling charges (commission to the local agent), provisional government estimates showed.

The Energy Minister disclosed recently that the cabinet has approved this offer of Global Concepts and it is now in the pipeline for finalisation but no final agreement has been reached as yet.

This proposal is in the pipeline among several other similar offers with various amounts such as $3.6 billion from the Oman’s Credit line offer, $500 million Indian credit line and the Central Bank’s offer of $600 million for the remaining quarter of the year for the fuel procurement.