Gas import: KSEW offers to construct LNG vessels, tugboats

KSEW is the only shipyard and the oldest heavy engineering concern in Pakistan, catering to needs of shipbuilding, ship repair and general heavy engineering. PHOTO: FILE

ISLAMABAD: 

Karachi Shipyard and Engineering Works (KSEW), a shipbuilding company, has offered its services for constructing liquefied natural gas (LNG) carrying vessels and tugboats for the import of gas.

“The Ministry of Defence Production is going to send a summary to the prime minister for approval in this regard,” a source said quoting officials who attended a meeting of the Economic Coordination Committee (ECC) on February 26.

KSEW is the only shipyard and the oldest heavy engineering concern in Pakistan, catering to needs of shipbuilding, ship repair and general heavy engineering.

According to sources, Port Qasim Authority (PQA) has sought financial assistance from the government for the purchase of tug boats and other ancillary works required for operational readiness of the port’s channel for handling LNG import.

Officials told the ECC that Elengy Terminal Pakistan Limited (ETPL) had been declared successful bidder and Sui Southern Gas Company (SSGC) had initialed an LNG services agreement with the bidder on January 17, subject to approval of the ECC.

Under the project, ETPL will handle a minimum of 200 million cubic feet of LNG per day (mmcfd) in the first year and 400 mmcfd in subsequent years for delivery to SSGC. The contract will be for 15 years starting November this year.

The bidder is required to meet all national and international standards by obtaining a licence, permits, authorisation and approval for safe and secure handling of LNG at the port.

The ECC was told that the Ministry of Petroleum and Natural Resources had nominated Pakistan State Oil (PSO) as its designated entity for negotiating an LNG sale-purchase agreement with Qatar’s designated entity Qatar Liquefied Gas Company Limited (Qatargas).

PSO and Qatargas have signed a confidentiality agreement and have also exchanged the draft of Heads of Agreement, which will form the basis for LNG supply. PSO and SSGC will enter into an agreement for LNG offtake under a commercial transaction structure.

ECC members told the meeting about issuance of a letter of comfort by PSO to the effect that in case of failure to import LNG, the company would be obliged to pay capacity charges to ETPL. Some officials were shocked to know and asked how PSO would pay capacity charges when it had no firm deal for LNG import from Qatar.

“The LNG terminal project will cost $200 million and will bring $2 billion in income, this is not a bad deal for the developer,” an official remarked, saying PSO would have to pay $11 million per month to the terminal operator like rental power plants (RPPs) even if the company did not get supplies.

Sources familiar with the development said the terminal operator would recover the entire project cost just in one and a half years.

“Keeping in view the situation, the ECC expressed concern and directed PSO to conduct due diligence as capacity charges would (eventually) be borne by the taxpayers,” the official said.

The Ministry of Petroleum will also explore the possibility of arranging LNG supplies through international competitive bidding. It was explained that it was imperative for SSGC to enter into a services agreement with ETPL as approved by its board of directors for timely completion of the terminal for handling imports by the start of next winter.

Turkey will impose ban

World’s leading video portal YouTube and Social Networking website Facebook are facing ban in Turkey, PakistanTribe.com reported.

According to the reports Turkish Prime Minister Tayyip Erdogan has hinted he may implement a ban on Facebook andYouTube following this month’s elections. It follows the release of leaks online that revealed alleged government corruption and embezzlement of public funds

In an interview on a late night program on private ATV television, Erdogan said he would not let social media companiescapture the nation.

He went onto saying ‘measures would be introduced to crackdown on Facebook and YouTube following the elections this month.’

“There are new steps we will take in that sphere after March 30… including a ban. We are determined on this subject. We will not leave this nation at the mercy of YouTube and Facebook.”

To query about possible of these sites, he said ‘Yes, closure included.’

Social media has been capitalized upon to disseminate links to Erdogan’s leaked telephone conversations that implicate him in corruption and graft. One of the latest leaks to emerge was a telephone conversation between Erdogan and his son where they allegedly discuss how to hide large sums of money.

Turkey’s Ministry of Family and Social Policy has also put forward a bill that would introduce strict limits on the use of the internet and social media.

The legislation stipulates an amendment that would allow government ministers to block websites deemed to infringe privacy, as well as force internet providers to retain information on their users, for up to two years.

Erdogan is sure that the elections later this month will reaffirm the popularity of his Justice and Development Party (AK) with the Turkish people.

Pakistan's mobile gaming industry breaks culture barriers

Small but growing IT industry worth an estimated $2.8 billion is being led by young entrepreneurs. PHOTO: AFP

LAHORE: It’s a city better known for its history and culture, but a new generation of mobile game developers is bringing a slice of Silicon Valley to Lahore.

With open plan offices, mixed gender teams, gourmet catering and an emphasis on a fun atmosphere, the small but growing IT industry worth an estimated $2.8 billion is being led by young entrepreneurs like Babar Ahmed.

Ahmed, 33, left a career as a circuit engineer in Austin, Texas to found Mindstorm Studios in Lahore in 2006 with his brother Faraz.

Today their studio employs 47 people thanks to hits like 2010′s “Whacksy Taxi”, which shot to number one on Apple’s AppStore in over 25 countries; “Mafia Farm” in 2012 and “Cricket Power”, the official game of the 2011 World Cup.

“The idea was to put Pakistan on the gaming world,” said Ahmed, explaining he was tired of “drawing room talk” among expatriates in the US about how something should be done for their homeland.

Mindstorm is one of several games development studios in Pakistan – mainly based in Lahore but also in Islamabad and Karachi – to have prospered with the spread of the smartphone.

“After the iPhone was launched, the definition of what a game is changed overnight. The definition of what a gamer is changed overnight,” said Ahmed.

While traditional “hardcore” games – typically played on home console systems or PCs – need multi-million dollar budgets and teams of dozens of developers, games designed for smartphones need far less start-up capital.

That has allowed countries in eastern Europe, Pakistan, and the Philippines to become prime destinations for software outsourcing, said Jazib Zahir, chief operations officer at Tintash, another Lahore-based studio that provided the back-office for “Fishing Frenzy”, another top-ten hit.

According to the government, some 24,000 people are now employed in software exports – though the figure also includes more traditional areas like financial software and healthcare.

“One of the advantages that Pakistan brings is we do have a critical mass of people with training and aptitude, an interest in developing software and art and combining them,” adds Zahir, who is also a part-time tech journalist.

At We R Play, an Islamabad-based studio based in a converted warehouse on the outskirts of the city, rows of twenty somethings busy themselves on their computers surrounded by colourful posters, plush toys and action figures.

The company was founded in 2010 by Mohsin Ali Afzal and Waqar Azim, with a major emphasis placed on a modern office space.

“We were sure from when we started that we didn’t want cubicles and I wouldn’t have a big office,” said Afzal, who returned from UC Berkeley in 2010.

“We wanted to make sure we’re sitting with everyone. We encouraged everyone to take ownership of their spaces and gave them (money) to get stuff for their tables.”

Workspace and play is also seen as key at CaramelTech, a Lahore studio founded in 2011 by brothers Saad and Ammar Zaeem which is responsible for coding global 2011 mega-hit Fruit Ninja (which had over 500 million downloads) for an Australian studio.

The office has a designated play room complete with pool table, table football, and X-box.

“Every day at 4pm they’re forced to leave their work and go play upstairs. We want that culture where people aren’t only working but also enjoy themselves,” he said.

Also notable in the games studios is near gender-parity, a striking fact in a country where female participation in the workforce has lagged behind for decades.

People are dressed in everything from Western jeans and t-shirts to hijabs. For some, convincing their family they are working in a “real job” wasn’t easy.

“Basically my parents think I play all day and don’t work,” joked Saadia Zia, We R Play’s 24-year-old head of quality assurance department which is tasked with teasing out bugs.

In addition to gaining the trust of employees’ families, the game studios have to contend with a host of issues ranging from frequent power outages to insecurity and civil unrest.

“Electricity does not work. You have to come to terms with that,” said Ahmed of Mindstorm, who plans to move his studio off-the-grid using solar panels.

They also have to contend with faulty telephone lines, security threats and the ubiquitous corruption that dogs life in Pakistan.

“Right outside our gate we had a car being gunned down. That affects you.”

However, the rewards outweigh the risks, he said.

“It’s somewhat like the Wild West. It’s not for everybody. If you expect a level of service from the environment around you, that’s not going to happen. If you can fend for yourself, it’s great.”

Barcelona: Innocent until proven guilty

The Blaugrana have come in for heavy criticism over the controversial transfer of Neymar, but should not be judged until the inquest is over

COMMENT
By Pilar Suarez

When Barcelona paraded Neymar in front of an adoring Camp Nou crowd in June 2013, the Spanish champions hoped he’d still be dominating the news agenda in Spain nine months on. He is. But not in the way the club had hoped.

Neymar’s move from Santos to Catalonia has developed into one of the most talked about transfers of all time. Although there was initial scepticism on some of the finer details of the move, it remained largely under the radar until Barca socio Jordi Cases issued a lawsuit over a lack of transparency, arguing the fee was more than Barca had claimed.

The fall-out was widespread. A Spanish judge decided to investigate Cases’ complaint, prompting Sandro Rosell to resign a day later despite standing by the claim neither he nor the club had acted inappropriately.

Rosell’s successor Josep Maria Bartomeu swiftly attempted to repair some of the damage, holding a press conference at which he went into some of the specifics of the deal and admitted there had been a €40 million payment made to the player’s parents’ company N&N as part of the €57.1m transfer fee.

Again, it caused an outcry. Having then made a ‘complementary’ tax payment of over €13m, Barca remain satisfied they have acted correctly throughout.

“We are calm, we are one of the few clubs who are up to date with tax payments," Bartomeu told RTVE. "I think in this way the club are exemplary.”

Barca believe they will be fully vindicated by the Spanish legal system. “Let us hope that before the courts everything will be found, as expected, to back up our story,” added Bartomeu.

"The contracts we signed with Neymar and with Santos were totally legal. The negotiations, the financial transactions, the contracts ... everything was done within the law.

"We would do exactly the same thing if given the chance to sign Neymar again. The goal was to sign a once-in-a-generation player like Neymar to play with the best in the world: Lionel Messi.”

The club’s position appears clear: don’t judge us now, judge us once the case has been through the courts. It seems a fair and logical approach, yet the whispers continue.


All Smiles | Rosell greets Neymar at his unveiling - months before things turned sour
Goal understands Barca have grown increasingly tired by what they perceive to be a smear campaign instigated by the Madrid press and let’s face it, for right or wrong, mud sticks.

They do have one high-profile supporter, Spanish Secretary of State for Sport Miguel Cardenal, who this week made his position clear.

In an interview with El Pais, Cardenal launched an impassioned defence of Barcelona, stating: “FC Barcelona are not only a key asset of the Spanish brand, but also a reference for sports clubs, committed to home-grown talent as a defining feature.

“I would not be doing honour to the responsibility entrusted to me if I remained silent whilst a pillar of our sport and one which has brought us so much is harassed and accused. That pillar is a part of the heritage of Spanish sport.”

He added: “Hopefully, this media kangaroo court trial, which is so damaging to the image of one of our country’s most prestigious institutions, our sport and for Spain's most admired institutions of our country will come to an end.

“I ask that everyone, in line with our responsibilities, contribute to this for the benefit of Spanish sport, which owes so much to this club.”

Inevitably, and somewhat depressingly, his words prompted accusations of bias in the Madrid media. The fact remains that this is an ongoing investigation, one that needs to be allowed to evolve through the relevant channels.

Only then will we find out whether Barca are guilty of wrongdoing and, until that time comes, they should be offered the presumption of innocence.

Guardiola: Bayern won't sign many players

The Bavarians have already secured the future of Robert Lewandowski and are set to add Sebastian Rode, but the Spaniard is not expecting much transfer activity

Bayern Munich coach Pep Guardiola says that he is only planning minor changes to his team this summer.

The German champions are set to sign Robert Lewandowski on a free transfer from Borussia Dortmund at the season's end and are likely to add Eintracht Frankfurt midfielder Sebastian Rode.

However, the former Barcelona coach says the core of his XI will remain the same at the end of the summer transfer window.

"I think the basis of the team will be more or less the same," he told reporters.

"There will be just a few additions."

Bayern face Wolfsburg in the Bundesliga this weekend and Guardiola says the vast majority of his players are fit to take on Dieter Hecking's men, whom he is refusing to underestimate, despite their 6-2 loss to Hoffenheim last week.

"All the players are fit whenever the Champions League is coming," he joked. "It's the case in other big clubs. I don't know why.

"Wolfsburg are one of the big teams in the league. They are a dangerous opponent, despite their 6-2 defeat last week.

"They have some very good players. It won't be easy. It will be a big challenge, and we can take another step towards defending the title."

Barcelona's future secure with Ter Stegen, but is the German ready for the present?

The Gladbach goalkeeper will move to Camp Nou in the summer to replace Victor Valdes but must step up to be good enough for the Blaugrana first team

COMMENT
By Enis Koylu

Ever since Victor Valdes' announcement that he would leave Barcelona at the end of his contract in June 2014, one man had been the overwhelming favourite to take the Spain international's No.1 jersey: Marc-Andre ter Stegen. 

And on Friday, Goal confirmed that Barca had reached an agreement with Borussia Monchengladbach to sign the goalkeeper this summer for a fee in the region of €9-12 million plus two friendly games.

Since breaking into the Gladbach first team three years ago, Ter Stegen's stock has continued to rise and rise. He was first thrust into the first starting XI in the place of Logan Bailly as a teenager and helped Lucien Favre's side survive relegation against the odds. He was the star of the show, along with Marco Reus.

The following season saw Gladbach produce more brilliance. Stunningly consistent, they pipped Bayer Leverkusen to fourth place in the 2011-12 Bundesliga. Ter Stegen was again one of their key players - only Bayern Munich had a better defensive record in the division - and was duly rewarded with an international call-up shortly after his 20th birthday.

The following term was far more of a disappointment for the Foals, who dropped to eighth place in the table and conceded twice the number of goals they had the previous season, while failing to make it into the Champions League proper after slipping to a disheartening defeat to Dynamo Kiev in qualifying.


One for the future? | The youngster has failed to impress for Germany despite his talent
So, the question remains: is a 21-year-old of such little top-level experience ready to play for one of the biggest clubs in the world and, beyond that, fill the void of a club hero like Valdes, who is arguably enjoying his finest season with the Blaugrana?

Ter Stegen has never featured in the Champions League proper and was hardly a bastion of stability against the Ukrainian outfit in qualifying, conceding a slack goal at his near post.

Beyond that, Germany have lost in each of his three appearances for the national team. The first was a goal-fest, a 5-3 loss to Switzerland, with the young keeper culpable for one of the strikes. 

Three months later, he was thrust into action against Argentina after Ron-Robert Zieler was dismissed and his first action was to save a Lionel Messi penalty. Things went downhill from there, though, as Germany slipped to a 3-1 loss.

The nadir was in the post-season tour of the USA. When given a chance to impress against the hosts, Ter Stegen failed miserably, scoring a comical own goal. Joachim Low's side have conceded 12 times in his three caps.

Playing for Barca is an entirely different proposition to international friendlies and Champions League qualifiers, of course. While Gladbach have a proud history and strong rivalry with the likes of Bayer Leverkusen and Borussia Dortmund, nothing he has experienced can compare to the cauldron of El Clasicoor the latter stages of the Champions League.

That said, the only way he will improve in big game situations is to play in critical matches and there is little doubt that he has all the ability to become one Germany's great goalkeepers. One of them, Oliver Kahn, is of the opinion that he could become one of the best ever.

"It is really interesting to see how consistent his performances are considering his age," the 2002 World Cup hero said. "Everything he does, he does with such calmness."

Arguably die Mannschaft's greatest ever keeper, Sepp Maier is also a vocal admirer. "Marc is virtually on a par with Manuel Neuer. Neuer has just preceded him. He plays for Bayern and has distinguished himself internationally."

Ter Stegen has responded to big challenges in the past - it can't be easy to come into a team sinking like a stone and lead them to survival, particularly as a teenager, but Barca's management and fans must have patience and build up his confidence. 

His scope to grow is enormous and moving to Camp Nou will help him reach the next level, so his signing is a risk, but certainly one worth taking

Privatisation problems: ‘Excess employees to be given opportunity in Dubai, Qatar’

Privatisation Commission Chairman Muhammad Zubair said Pakistan Steel Mills currently has 75% surplus employees. PHOTO: FILE

LAHORE: In what could be a matter of concern for the government, Privatisation Commission Chairman Muhammad Zubair has said that a ‘minimum’ number of workers would be laid off during the privatisation process.

He added that excess employees would be given benefits, reshuffled to other organisations or be given an opportunity to work in Qatar or Dubai, as he addressed the Lahore Economic Journalists Association (LEJA).

“Downsizing in these public entities as a result of privatisation is the most important concern of the opposition as well as of the government. But we should also look at those people on the other side of the wall who are waiting for the right opportunity,” said Zubair. “However, I can assure everyone that minimum workers would be laid off and excess employees will either be given benefits, reshuffled to other organisations or we will provide them an opportunity to work in Qatar or Dubai due to the increasing employment opportunities there due to the World Cup and Expo 2020,” he said.

Despite the government’s plan to raise Rs150 billion during the current fiscal year through privatisation being delayed due to various reasons, Zubair said that he was planning to move ahead even more aggressively.

Privatising public entities is a tough job, but it is necessary to put Pakistan back on track of economic revival, said Zubair.

The official said that strategic partners were needed who could inject capital into sick units and turn them into profitable ventures. These organisations need structural changes for sustainable growth, and for this we have to take tough decisions, he said.

“Habib Bank is one of the best examples — the bank, before its privatisation, had 13,000 employees. The number has now crossed 26,000 employees with improvement in services,” he said.

Zubair also mentioned Pakistan Steel Mills, saying that the entity currently has 75% surplus employees. “Out of 4,600 officers, 2,600 are either middle school or matriculation-cleared and they all are deputed in key departments at the PSM,” Zubair said. “How can you expect progress with such a workforce