Government will award the contract of new Gwadar International Airport to China Harbour Engineering Com-pany to execute it on fast track turnkey basis, official sources told media.

Civil Aviation Authority will review and supervise the project design. It will ensure airport construction as per best international practices, sources said.

The airport will be a regional hub that will be developed, with an investment of $70 million, primarily to serve cargo market. CAA had invited proposals for project management and design consultants in March. Several firms expre-ssed interest in the project, including CHEC.

The firm also submitted its proposal to President Pervez Musharraf before his visit to China in June 2006. Sources said after examining the Chinese offer Defence Ministry found it attractive.

'CAA's analysis of Chinese offer showed that if the project was undertook conventionally then it will complete in 36-42 months, while CHEC has given 24 month completion time,' sources said.

The company has also worked in Gwadar and is familiar with the working conditions there. They have done Gwadar Deep Water Port Phase-I that is a major project in Pakistan . They have experience of several airports engineering projects in China , Macao , Hong Kong .

With the completion of the project at much earlier date than planned, both CAA and government will benefit from early realisation of revenue. According to the Defence Ministry the firm is in an ideal position to finance the project on the same lines as was done in Gwadar Deep Water Project Phase-I i.e. preferential buyers credit and grants/soft loans.

Sources said to move forward CAA will sign a contract with CHEC. The firm would make feasibility study, including site investigation, necessary surveys, preliminary design, cost estimates etc and finally submit a technical and financial proposal to CAA.

CAA will then review the technical and financial proposal to ensure that the requirements of International Civil Aviation Organization are satisfactorily met. Once the technical and financial offers are accepted by CAA, the government will enter into a formal agreement with the firm on price and terms and conditions of the financial offer, as the project is being funded through PSDP.