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The first meeting of the India-Pakistan Joint Working Group (JWG) on cooperation in transnational pipelines was held in New Delhio on 12th – 13th July, 2005. The Indian delegation was led by Shri S.C. Tripathi, Secretary, Ministry of Petroleum & Natural Gas, while Pakistani delegation was led by Mr. Ahmad Waqar, Secretary, Ministry of Petroleum & Natural Resources. Besides having substantial delegation level discussions, the Pakistani delegation called on Shri Mani Shankar Aiyar, Indian Minister of Petroleum & Natural Gas and Panchayati Raj, who conveyed the firm support of the Government of India to the Iran-Pakistan-India Pipeline Project and other transnational pipeline proposals under consideration. He urged the two delegations to prepare a time frame in respect of various items pertaining to the project.
The discussions between the two delegations were marked by a positive and constructive approach and were held in an atmosphere of candour and mutual understanding. Both sides conveyed their serious commitment to address various issues pertaining to the project so as to maintain the momentum of the dialogue. They agreed that dialogue on the basis of bilateral joint working groups between India, Pakistan and Iran, interspersed with periodic interactions, at Ministerial level, provided a satisfactory mechanism to address and resolve all matters pertaining to the project.
The two delegations had an indepth discussion on the technical, financial commercial and legal aspects of the project. The two sides agreed that in order to realize a safe and secure world class project, arrangements would need to be provided for in every aspect of the project, including technical, commercial, financial and legal matters.
The two sides agreed that once basic issues pertaining to the project had been satisfactorily resolved between the three countries concerned, they would enter into a “Framework Agreement”. In this regard, it was agreed that the Indian side would submit a draft text to the Pakistani side before the next meeting of the JWG. The two sides agreed that they shared an immediate commonality of interest in regard to the technical aspects of the project such as the size and specifications of the pipeline, the quality of gas, the quantum of gas required by the two countries and the build up period. It was agreed that technical experts of the two countries would meet quickly in order to harmonize the position of the two sides in this area to achieve a project of international standard.
The proposed pipeline routes and delivery point were also discussed. It was agreed that these would be established on the basis of techno-economic considerations.
The two sides agreed that the price of the gas as well as the project structure were of crucial importance. Various approaches to determine a reasonable price of gas as also various options pertaining to project structure were discussed by the two delegations. It was agreed that these matters would be pursued in greater detail at subsequent meetings of the JWG.
The two sides agreed on the crucial importance of urgently appointing their respective financial advisory consortium to advise on project structure and related technical, financial, commercial and legal matters. They agreed that every effort would be made to appoint the respective financial advisory consortium at the earliest.
The two sides noted with satisfaction that each of them had initiated the process of joining the Energy Charter, initially with “Observer” status. They agreed that in the various inter-governmental agreements entered into by them in respect of the project, the provisions of the Energy Charter would be referred to.
In order to carry the process forward, the two sides agreed that the next meeting of the JWG would take place in Islamabad by the end of August 2005.
The two sides discussed the other pipeline proposals under consideration by them, i.e. the Turkmenistan – Afghanistan – Pakistan (TAP) pipeline and the Gulf – South Asia (GUSA) pipeline. They noted that India had been invited to attend the next meeting of the Steering Committee of the TAP Project. The Pakistani side briefed the Indian side on the latest developments pertaining to the project as also on their recent discussions pertaining to the GUSA Project.
RCJ/kc /joint press statement (India-Pak) 13.7.05
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