Thursday, August 25 2005 19:41 Hrs (IST) - World Time -

New Delhi: India has short listed KPMG, Standard Chartered and Ernst & Young as its financial advisors for suggesting a project structure for execution of the 7.4-billion US dollar Iran-Pakistan-India gas pipeline.

"Out of 23 financial consultants, who applied for the job, three were qualified based on a stringent criteria. KPMG, Standard Chartered and Ernst & Young made presentations to us earlier this week and we intend to appoint a consultant by end of this month," a top Petroleum Ministry official said.

The financial consultant would suggest a project structure (who should build the pipeline, own and maintain it and how the project is to be financed) and security measures to be built in every aspect technical, legal, financial and commercial of the project.

"It would also facilitate dialogue with Iran and Pakistan and suggest approach to pricing of gas and other issues like transit fee, inter-Government framework agreement, guarantees etc", he said.

The financial consultant, who is to submit a report within two months, will also help in selecting a legal consultant for drafting project framework agreement and other agreements.

"We intend to put in place the financial advisor by end of this month and the legal consultant would be appointed in 3-4 weeks time," the official said.

Pakistan would also appoint separate financial advisors for the same purpose, he said, adding that the two sides would converge their ideas, along with the proposal of Iran before the three nations sign the framework agreement by year end for the project to take off by early 2006.