Islamabad, Sept. 6 (ANI): A Chinese firm that was involved in the Iran-Pakistan (IP) gas pipeline project has pulled out after Islamabad refused to extend the bid validity period.
Panyn Chu King Steel Limited had earlier offered Pakistan that it would give 500 million dollars for the IP pipeline, but has now pulled out of the project, the Express Tribune reports.
The firm was selected during a bidding process organized by the Interstate Gas Systems (ISGS) as a qualified bidder to finance the pipeline at 1,650 dollars per ton, including compressors, the report added.
The company had sought an extension in the bid validity period from Islamabad, but the government expressed its unwillingness to do so.
According to the report, the Pakistan government is now banking on Iran to fully fund the pipeline's construction.
A senior government official said Pakistan and Iran will start negotiations on provision of funds for the pipeline, if the latter agrees.
The total cost of the project has been estimated at 1.5 billion dollars and Iran has already committed 500 million dollars in loan for laying the pipeline in Pakistan.
Islamabad has promised the Engineering, Procurement and Construction (EPC) contract to Iranian firm Tadbir Energy in return, the report added. (ANI)