Federal cabinet which is scheduled to meet on Tuesday (today) at Governor's House Lahore, will approve signing of three pacts with South Korea during the forthcoming visit of President Asif Ali Zardari, official sources told Business Recorder.

Zardari will visit Seoul from December 18-20, wherein he will discuss Pakistan's future plans, the sources added. Pakistan is also expected to sign currency swap deal with South Korea on the same pattern as was done with Turkey.

Three pacts to be signed are: (i) framework agreement for grant aid between Korea and Pakistan; (ii) cooperation between Korea Water Resources Corporation (K-Water) and Wapda and; (iii) Ministry of Water and Power and Korea Electric Power Corporation (Kepco).

The draft framework agreement for grant of aid between Korea and Pakistan aims at institutionalising the development cooperation relating to grant assistance between the two countries. It includes, providing Pakistani government with equipment, machinery and material; (ii) implementing aid projects for economic and social development of Pakistan; (iii) inviting nationals of Pakistan to training programmes in Korea and (iv) dispatching experts to Pakistan for consultation with Pakistani government in a spirit of partnership.

The framework agreement also envisages setting up of Korean International Cooperation Agency (Koica) office in Pakistan for overall management of grant aid programmes in Pakistan. This agreement will remain in force for a period of three years and shall be automatically renewed for subsequent three years period, unless either party gives the other a written notice of its intention to terminate the agreement at least six month in advance.

The pact between Korea Water Resources Corporation (K-Water) and Water and Power Development Authority (Wapda) will recognise the boarder and more diversified links between both sides in pursuit of sustainable power and water sector development cooperation to their common benefit.

Both the organisations will cooperate in accordance with the pact, subject to relevant laws of each country, to jointly explore the avenues for (i) studying the development of water resources infrastructure including dams, hydropower, flood control and canals; (ii) the exchange of technical expertise through sharing of knowledge and visits to and joint meetings, seminars, symposia in Pakistan and Korea; (iii) the training of engineers, technicians, scientists and managers in training facilities of Pakistan and Korea; (iv) study and research on issues and areas of common interest, including cooperation and management of dams and reservoirs, flood control, hydropower, hydrology and sedimentation;(v) understanding of public sector contractual frameworks in respective countries for the construction, operation and supervision of water sector infrastructure; and (vi) cooperation in any other aspect of water resources infrastructure subject to the law and rules. The pact will come into effect on the date of its signing and will remain in force for a period of three years.

Wapda has examined the MoU and supported to sign as it pertains to studies, research and capacity building. However, for procurement or construction of projects in order to ensure transparency, the relevant rules/instructions/international competitive bidding (ICB) and PPRA Rules will be followed.

The pact between the Ministry of Water and Power and Korea Electric Power Corporation will be related to exchange of data and/or information, cooperation to develop the hydropower in Pakistan, exchange of visits by experts, engineers and technicians in power business and cooperation in other power business fields of mutual interest.

The pact will take effect from the execution date and will remain in force for a period of five years. It will be automatically extended for a period of one year unless either party requests termination by giving written notice to other party at least three months in advance of the desired termination dates.