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The expanded port will be located near a 2,282 acre free trade area in Gwadar which is being modelled on the lines of the Special Economic Zones of China.[36] The swathe of land was handed to the China Overseas Port Holding Company in November 2015 as part of a 43-year lease,[37] while construction of the project began on 20 June 2016.[38] The special economic zone is expected to employ approximately 40,000 people,[39] with possibility for future expansion.[40] The special economic zone will include manufacturing zones, logistics hubs, warehouses, and display centres.[41] Business established in the special economic zone will be exempt from Pakistani income, sales, and federal excise taxes for 23 years.[42] Contractors and subcontractors associated with China Overseas Port Holding Company will be exempt from such taxes for 20 years,[43] while a 40-year tax holiday will be granted for imports of equipment, materials, plants, machinery, appliances and accessories that are to be for construction of Gwadar Port and special economic zone.[44] The special economic zone will be completed in three phases. By 2025, it is envisaged that manufacturing and processing industries will be developed, while further expansion of the zone is intended to be complete by 2030.[30] On 10 April 2016, talking to The Washington Post, Zhang Baozhong, chairman of China Overseas Port Holding Company said that his company could spend a total of $4.5 billion on roads, power, hotels and other infrastructure for the industrial zone, which he said would be open to non-Chinese companies. The company also plans to build an international airport and power plant for Gwadar Following the completion of Phase I, the Government of Pakistan in February 2007 signed a 40-year agreement with PSA International for development and operation of the port, and an adjacent 584 acre special economic zone.[48] PSA International was the highest bidder for the Gwadar port, after its competitor DP World withdrew from the bidding process.[49] PSA was granted a wide range of tax concessions, including exemption from corporate tax for 20 years, land for a special economic zone, duty-free imports of materials and equipment for construction and operations of the port, and duty-free shipping and bunker oil for 40 years. In addition to these incentives, the provincial government of Balochistan was also asked to exempt PSA International from the levy of provincial and district taxes. According to the agreement with PSA, the Government of Pakistan was to get a fixed 9% share of the revenue from cargo and maritime services, in addition to 15% of revenues earned from the adjacent special economic zone. In September 2011, the Wall Street Journal reported that Gwadar was being underused as commercial port, and that Pakistan had asked the Chinese government to assume operations of the port.[50] PSA also reportedly sought to withdraw from its contract with the Pakistani Government, and expressed willingness to sell its share in the project to a Chinese firm after the Pakistani Navy failed to transfer land required for development of the planned 584 acre free trade zone.[48] PSA also did not invest the agreed $550 million into the port, on account of the poor security situation in Balochistan in the period between 2007 and 2013.[48] The government of Pakistan also failed to invest in requisite infrastructure works.[51] The Supreme Court of Pakistan further issued a stay order against the allotment of land to PSA on account of a public petition.