Procurement of 06 x Maritime Patrol

Vessels (MPVs)
Group Members
Farakh Ali
Aneeque Ejaz
Umair Mansoor
Faraz Saifullah Khan
 Introduction

Project Charter-1 (PC-1)

Pakistan Maritime Security Agency (PMSA)
Maritime Patrol Vessels (MPV’s)
Location Karachi Shipyards & Engineering Works (KS&EW)
 PROJECT OBJECTIVES
National Objectives
Provide assistance for oil, gas and other mineral exploration
Conduct of counter-narcotics and anti-human trafficking
Protection of Pakistani fishing vessels and crew
Unauthorized exploitation of economic resources of Pakistan
Provision of effective secondary maritime force deployment
in any emergency, war or conflict
 PROJECT OBJECTIVES

International Objectives
Search and Rescue (SAR) in area allocated by International
Maritime Organization ( IMO)

Coordinate disaster management related activities on behalf of

Govt of Pakistan
 AUTHORITIES & WBS
• Sponsoring: Ministry of Defence
• Execution: Pakistan Maritime Security Agency
• Operation and Maintenance: Pakistan Maritime Security Agency
under Ministry of Defence
Phase – I 02 x Maritime 2014 - 2016
Patrol Vessels
Phase –II 02 x Maritime 2017 – 2018
Patrol Vessels
Phase –III 02 x Maritime 2019 - 2020
Patrol Vessels
 Description

Pakistan’s coastline length 990km

Exclusive Economic Zone (EEZ) of 240,000 sq. km
Indian fishermen catch Rs.8 Billion worth of fish per annum
Illegal activities smuggling of oil, liquor and human smuggling
Maritime Rescue Coordination Centre (MRCC) respond to
emergencies and coordinate SAR operations
 Justification

At present, surface fleet of PMSA is comprised of 04 x Corvettes

of Chinese origin
Bought between 1989-1990, area per corvette is 60,000 Sq. km
6,000 hours of nonstop patrolling
Existing corvettes have outlived their life
At present vessels are not capable to operate Sea State 3 new one
will can be operated at sea state 5
 Technical Parameters
21 days at sea without replenishment
Maximum Speed - 30 Knots and Cruising Speed - 12-16 Knots
Semi automatic and manual weapons
Navigational Radar, Automatic Identification System (AIS) and IR
Search
External and internal Communication Equipment
Air compressor, Air conditioning and ventilation system, Steering
Control System
Fire alarm and Automatic Fire Fighting arrangements
 CAPITAL COST ESTIMATES

Cost per ship US$ 22.5 Million (22.5x105 = Rs.2362.5 Million)

Cost per phase US$ 45 Million (45x105 = Rs.4725 Million)
Approximately US$ 135 Million (135x105 = Rs.14,175 Million)
Milestones
 Others

Annual operating cost of 06 ships will be approximately 207

Million Rupees
New ships will assist PMSA in fulfilling the assigned roles and
tasks by IMO
 FINANCIAL PLAN
Financing of project will be through Government of Pakistan
Public Service Development Projects, Budget and one of ship
builder firm agreed to finance the project on following terms
and conditions:
OPTION-1 (Financing through loan)
OPTION-2 – (Lumsum Payment)
 OPTION-1 (Financing through loan)

80% of the total price will be arranged by the firm

15% of the total price shall be arranged by Govt. of Pakistan/
PMSA and paid to firm as advance payment.
5% of the unit price arranged by Govt of Pakistan/ PMSA and
paid upon delivery of respective ship in firm’s shipyard.
Repayment of ten (10) semi-annual instalments (duration 5 years)
 Continue…

Bank’s Annual interest rate is 3.39% and management fee of

0.8% of total credit
Proposal valid until 31 March 2014
Financing Proposal is to finalization by the bank before contract
Firm is also provide Kit of Material (KOM) and Transfer of
Technology (TOT) to KS&EW.
 OPTION-2 – (Lumsum Payment)
Six (06) Maritime Patrol Vessels(MPV) shall be built and delivered in
Contracting Firms shipyard
Unit price for one MPV to be constructed in China is USD 18 Million dollar.
 The total price for six (6) MPV to be constructed is USD 108 Million dollar
 Continue…
15% of the total price to be paid as advance payment of
respective ship.
25% to be paid upon steel cutting of respective ship.
20% to be paid upon keel laying of respective ship.
20% to be paid upon launching of respective ship.
10% to be paid upon start of HAT (Harbour Acceptance Test) of
respective ship.
10% to be paid upon delivery of respective ship.
 PROJECT BENEFITS AND ANALYSIS
Financial
 Existing old PMSA Corvettes burden on limited PMSA budget
 saving almost Rs.8 Billion robbed by Indian fishermen every year
 Experts from Pakistan Navy play role in maintenance of PMSA
ships
 Existing PMSA Corvettes cannot operate beyond Sea State 3 but
new one operate at sea state 5
 Continue…
Economic
95% of total trade carried out by sea
New ships will enhance PMSA existing capabilities to safe guard
maritime zones of Pakistan
Employment Generation
Direct employment to 800 employees of KS&EW
Indirect employment to thousands of workers
 Others…

Maintain the balance of power (f PMSA and Indian Coast Guard)

Poaching by the Indian fishermen
Smuggling / trafficking of human and other commodities
Marine Pollution and Oil-related Environmental Disasters
In order to keep the Maritime Zones of Pakistan safe the capacity
building of PMSA is the need of the time
 PMSA Achievements

Since 1990, PMSA seized almost 85 tons of narcotics worth Rs 15

Billion
PMSA apprehended numerous boats involved in smuggling, human
trafficking activities and oil, liquor worth Billions of Rupees
Rs 90.5Million in Govt treasury after auction of apprehended indian
fishing boats and seized fish/ nets
 MANAGEMENT STRUCTURE AND
MANPOWER

Pakistan Navy has recently inducted Fast Attack Craft (Missile),

which were built in KS&EW, all required facilities and
infrastructure is already available with KS&EW
After induction of new ships, the crew of phased out corvettes
would be utilized to operate the new ships therefore no additional
manpower will be required