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CPEC long term plan: Pakistan’s railway network to be extended to Gwadar, Kashgar, Mazar Sharif

August 18, 2019



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ISLAMABAD: The ambitious plan of connecting Pakistan’s railway network from China and Afghanistan to Gwadar deep sea port under China Pakistan Economic Corridor (CPEC) has been declared strategically important by both the countries.

The plan will help commercially viable transportation of goods from China and Central Asian States to the port city besides boosting trade and tourism activities in the country.

The already agreed CPEC project for up-gradation of existing Main Line 1 (ML-1) railway track from Peshawar to Karachi will be materialized in the first phase, while the then new railways lines would be laid across the country to boost trade activities under CPEC.

According to the plan, a new 1,059 kilometer railway line from Havelian in Pakistan’s province of Khyber Pakhtunkhwa to Kashghar in Chinese province of Xinjiang would be laid to connect both the countries through railways.

Another 1328 kilometer long new railway line from Jacobabad and Quetta via Basima to Gwadar is also planned to be established at a cost of $4.5 billion to connect the port city with rest of the country and China. Similarly Pakistan Railways has also plan to lay a new 560 km railway track from Quetta to Kotla Jam on ML-2 via Zhob and D.I. Khan.

New railway line from Peshawar to Torkham in Afghanistan is also part of the plan however in a fresh development, an official source in ministry of planning and development told this scribe that the railway network would be extended deep in the country to Kabul and then Mazar Sharif so that the Central Asian states could be connected via railway line with Gwadar.

All these new railway projects have been put in the long term plan of CPEC which is supposed to be completed by 2030.

“In order to effectively eventuate ML-1 project, it has been decided to break the project into three packages,” an official in railway ministry said. The ministry of railways has already submitted the PC-1 of package 1 worth of $2.389 billion to the Planning Commission.

“Keeping in view the importance of the project, Prime Minister Imran Khan has directed the concerned authorities to start work on the project as early as possible, therefore the PC-1 of first package of the project is expected to be considered by the Central Development Working Party (CDWP) later this month which would refer to the Executive Committee of National Economic Council (ECNEC) for final approval,” a high official in planning ministry told this scribe.

He said once approved by the ECNCEC, this project would be presented before the the 9th annual meeting of Joint Coordination Committee on CPEC between Pakistan and China to be held in October this year for finalizing financing modalities.

The scope of work includes up gradation and doubling of ML-1 from Karachi to Peshawar and Taxila to Havelian (1872 km) including provision of modern signaling and telecommunication systems, conversion of level crossings into under passes/fly overs and fencing of track. CPEC project leader in Ministry of Railways Basharat Waheed said that on completion of ML-1, Pakistan Railways will reap up the advantages of increase in speed from 65-105 km/hour to 120-160 km/h, increase in line capacity from 34 to 171 trains each way per day, increase in Freight Volumes from 6 to 35 million tons per annum by 2025, increase in passenger trains (ex-Karachi) from 20 to 40 each way per day and increase in railway share of freight transport volume from less than 4pc to 20pc.

Journey time from Karachi to Lahore will be reduced from existing 18 hours to only 10 hours while that from Islamabad to Lahore will be reduced from four and half hours to two and half hours, he added.

He said financing for the project would be arranged through loan by the government of China.

Share of Chinese Loan and government of Pakistan Investment would be 85pc:15pc. Loan will be on favourable terms at around 2pc with grace period of 8-10 years. As per Business Plan, the loan will be paid back in 20 years, after project completion, from railway earnings.

Meanwhile according to official documents available with APP, the project will create around 20,000 direct jobs for local people while it will also create over 150,000 indirect jobs in the country.



Copyright APP (Associated Press of Pakistan), 2019
 
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LAHORE, (APP - UrduPoint / Pakistan Point News - 28th Aug, 2019 ) :A two-member delegation from Rashakai Special Economic Zone (RSEZ) management team from China on Wednesday called on the Lahore Chamber of Commerce & Industry (LCCI) Vice President Faheem-ur-Rehman Saigal.
According to LCCI spokesman, on the occasion various issues including establishment of special economic zones in Pakistan and Pak-China trade relations came under discussion.

Delegation members Suo Bin Xing and Simon Li threw light on their ongoing projects.

Faheem-ur-Rehman Saigal hoped that RSEZ in Khyber Pakhtunkhwa would help produce much-needed employment opportunities besides generating revenue.

He said that the LCCI has always been vocal in favour of SEZs because through these infrastructures, process of industrialization can be boosted and new employment opportunities can be generated.

He said there was no doubt that with the establishment of special economic zones all across the major industrial areas in the country, the present pace of economic development can be enhanced to achieve the desired results.

The LCCI Vice President said that Pakistan has yet to exploit the potential of regional trade for its own advantage.

"We believe that Rashakai Special Economic Zone will play key role in increasing foreign trade particularly reaching out to Afghanistan and remote destinations of CIS countries", he added
 
Pakistan China have agreed to fast track implementation of industrial cooperation under CPEC utilizing Chinese experiences to ensure speedy development of special economic zones in Pakistan.ground breaking of Rashakai Special Economic Zone #SEZ in KPK is planned next month.



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CPEC long term plan: Pakistan’s railway network to be extended to Gwadar, Kashgar, Mazar Sharif

August 18, 2019



cpec.jpg




ISLAMABAD: The ambitious plan of connecting Pakistan’s railway network from China and Afghanistan to Gwadar deep sea port under China Pakistan Economic Corridor (CPEC) has been declared strategically important by both the countries.

The plan will help commercially viable transportation of goods from China and Central Asian States to the port city besides boosting trade and tourism activities in the country.

The already agreed CPEC project for up-gradation of existing Main Line 1 (ML-1) railway track from Peshawar to Karachi will be materialized in the first phase, while the then new railways lines would be laid across the country to boost trade activities under CPEC.

According to the plan, a new 1,059 kilometer railway line from Havelian in Pakistan’s province of Khyber Pakhtunkhwa to Kashghar in Chinese province of Xinjiang would be laid to connect both the countries through railways.

Another 1328 kilometer long new railway line from Jacobabad and Quetta via Basima to Gwadar is also planned to be established at a cost of $4.5 billion to connect the port city with rest of the country and China. Similarly Pakistan Railways has also plan to lay a new 560 km railway track from Quetta to Kotla Jam on ML-2 via Zhob and D.I. Khan.

New railway line from Peshawar to Torkham in Afghanistan is also part of the plan however in a fresh development, an official source in ministry of planning and development told this scribe that the railway network would be extended deep in the country to Kabul and then Mazar Sharif so that the Central Asian states could be connected via railway line with Gwadar.

All these new railway projects have been put in the long term plan of CPEC which is supposed to be completed by 2030.

“In order to effectively eventuate ML-1 project, it has been decided to break the project into three packages,” an official in railway ministry said. The ministry of railways has already submitted the PC-1 of package 1 worth of $2.389 billion to the Planning Commission.

“Keeping in view the importance of the project, Prime Minister Imran Khan has directed the concerned authorities to start work on the project as early as possible, therefore the PC-1 of first package of the project is expected to be considered by the Central Development Working Party (CDWP) later this month which would refer to the Executive Committee of National Economic Council (ECNEC) for final approval,” a high official in planning ministry told this scribe.

He said once approved by the ECNCEC, this project would be presented before the the 9th annual meeting of Joint Coordination Committee on CPEC between Pakistan and China to be held in October this year for finalizing financing modalities.

The scope of work includes up gradation and doubling of ML-1 from Karachi to Peshawar and Taxila to Havelian (1872 km) including provision of modern signaling and telecommunication systems, conversion of level crossings into under passes/fly overs and fencing of track. CPEC project leader in Ministry of Railways Basharat Waheed said that on completion of ML-1, Pakistan Railways will reap up the advantages of increase in speed from 65-105 km/hour to 120-160 km/h, increase in line capacity from 34 to 171 trains each way per day, increase in Freight Volumes from 6 to 35 million tons per annum by 2025, increase in passenger trains (ex-Karachi) from 20 to 40 each way per day and increase in railway share of freight transport volume from less than 4pc to 20pc.

Journey time from Karachi to Lahore will be reduced from existing 18 hours to only 10 hours while that from Islamabad to Lahore will be reduced from four and half hours to two and half hours, he added.

He said financing for the project would be arranged through loan by the government of China.

Share of Chinese Loan and government of Pakistan Investment would be 85pc:15pc. Loan will be on favourable terms at around 2pc with grace period of 8-10 years. As per Business Plan, the loan will be paid back in 20 years, after project completion, from railway earnings.

Meanwhile according to official documents available with APP, the project will create around 20,000 direct jobs for local people while it will also create over 150,000 indirect jobs in the country.



Copyright APP (Associated Press of Pakistan), 2019



CPEC: what’s stopping Pakistan Railways?

The world’s second-longest train route connects Yiwu, a trading centre near Shanghai, to London. The 12,000-plus kilometer-long railway track which opened in 2017 has made possible hauling millions of tons of goods within 18 days, which once took 30 to 45 days of sailing to reach the shores of Great Britain. The China-Europe rail now connects 108 cities across 16 countries, ushering in new opportunities for trade and prosperity and unfolding a new economic world order.



In Pakistan however, we have yet to initiate the up-gradation and doubling of ML-1 from Karachi to Peshawar. The track will ultimately extend to Kashghar, providing access to the BRI railway grid.

For now, the ML-1 up-gradation project remains limited to neatly-ribboned blue files, prominently displaying the Government of Pakistan’s emblem, slowly moving from one ministry to another. Ministers and their ministries are bickering over approval processes; feasibility studies are taking forever to complete; while the intimidating $8 billion price tag keeps on haunting those who dare to touch these files.

Irrespective of these political scuffles, turf wars and blame games that characterise the usual business of government, there are three fundamental reasons behind this inaction.

First is the prevailing economic crisis and the ongoing IMF programme. Not only has the IMF raised serious concerns about Pakistan’s debt sustainability, but it has also placed a tight limit on the number of government guarantees. In the absence of any government guarantees the ML-1 financing may have to be undertaken by the Pakistan Railways itself, which would need other guarantee mechanisms.

Moreover, the fiscal constraints leave little room for any significant co-contribution. The total cost of the project is $8.2 billion, with 85% financing coming from China with a grace period of 8 to 10 years. Although this would mean no immediate outflows on account of repayment, the remaining 15% which translates into a whopping Rs193 billion would have to be contributed by Pakistan. Even for the first phase of $2.3 billion, we would need to pitch in Rs54 billion. If the government is serious about ML-1 up-gradation, now is the time to figure out these issues and find workable solutions.

Secondly, the newly formed debt commission is looking into past mega projects, while NAB and provincial anti-corruption authorities are actively sniffing for corruption everywhere. A suspect is treated as a convict and before he could prove his innocence (or be proven guilty) he would have served years in prison already. In this situation, it is not easy to find a bureaucrat who is willing to sign on this multibillion-dollar framework agreement.

Thirdly comes the pricing of the project. The project is likely to follow the CPEC procurement modality, with limited competition amongst Chinese contractors. This should be fine as long as the pricing remains competitive. But international benchmarks suggest that this price is probably on the higher side. The 1,214-kilometre long Chinese Geku Railway due to be completed in 2019, for instance, costs $5.4 billion to build from scratch. Considering that ML-1 is an upgrade the price tag of $8.2 billion for 1,872 kilometres looks a little steep.

But such comparison could also be misleading, as project specificities could sometimes cause large cost variations. An alternative approach could be to limit the CPEC framework agreement to two of the three project components and undertake one component through international competitive bidding. This could help the government in real price discovery and can support in price negotiations with the Chinese.

If handled right, the ML-1 could become Prime Minister Imran Khan’s legacy that could get him political dividends for years, like the Motorway did for Mian Nawaz Sharif, or else it could easily turn into political baggage.

Published in The Express Tribune, September 3rd, 2019.

Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.

https://tribune.com.pk/story/2047748/6-cpec-whats-stopping-pakistan-railways/





 
China Uplifting Pakistan, Gives Zero Duty Market Access to 90 pc Pakistani Commodities

China agreed to grant zero duty market access to 90% of Pakistani goods. These measures will help Pakistan remove the disparity between the China-Pakistan bilateral trade. The assessment says that under the China-Pakistan Free Trade Agreement (CPFTA) ph II, Pakistan’s exports to China will see a boon of approximately $500 million. China Economic Net quoted in a report that China is going to invest $1 billion in 27 socio-economic development projects such as education, health, agriculture etc. Official sources calculated that 70,000 direct jobs under CPEC had added 23% to Pakistan’s per capita income. The comparison between the fiscal year 2013-14 and 2017-18 depicts that CPEC has raised Pakistan’s GDP by 4.14%.

 
China ships equipment for $1.7 bln energy project

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BEIJING: A Chinese company has shipped power equipment to Pakistan for the country’s first $1.7 billion worth of transmission project under the China-Pakistan Economic Corridor (CPEC) framework.

Fushun Electric Porcelain Manufacturing Company shipped 30 tons of direct current (DC) 660 kilovolts of Zinc Oxide Lightning Cooler to Pakistan for its grid project from Shen Fu new area.

Wang Youxue, member of the Party Work Committee of the Shen Fu New District of China’s Liaoning province and deputy director of the Management Committee told China Daily News that the Fushun Electric Porcelain Manufacturing Company participated in the project as it was one of the key cooperation projects of the belt and road Initiative.

Youxue said the DC transmission project is also the first landing project for Pakistan to open foreign investment in the field of power transmission and transformation. The total investment of the project is $1.658 billion and it will be officially put into operation in 2021.

Based on the technical advantages of its own ultra high voltage products for many years, Shen Fu New District Fushun Electric Porcelain Manufacturing Company successfully won the bid for the alternating current and DC pillar insulators and metal zinc oxide surge arresters of the project, with a total contract value of more than 57 million yuan. Shen Fu New District has been paying attention to and supporting the transformation and upgrading of traditional enterprises in the new district.

Youxue said Fushun Electric Porcelain Manufacturing Company is actively responding to the belt and road initiative and went abroad. “Shen Fu New District will serve the enterprise and help the rapid development of the enterprise.”

The enterprising spirit of struggle marked a significant progress in the belt and road national grid project of Fushun Electric Porcelain Manufacturing Company.

The Matiari-Lahore high-voltage direct current transmission line project has already secured financing. This is the country’s first private sector transmission project under CPEC and will transmit more than 4,000 megawatts of coal-based electricity from projects in Sindh to the Punjab’s main grid.

Besides the transmission project, the Private Power Infrastructure Board is currently facilitating implementation of power projects having cumulative capacity of 10,934 megawatts under CPEC, which include various hydel and coal-fired projects.

CPEC envisaged capital investment of $60 billion to generate economic activities. Most of the committed investment is targeted at improving generation capacity and transmission capability in the energy sector of Pakistan. Apart from focusing on energy, infrastructure and Gwadar projects, nine special economic zones are being established under CPEC portfolio to revive industrialisation process by foreign and Chinese’s businesses and technology transfers and transformation.
 
Biggest power plants under #China’s Belt and Road Initiative (BRI)

Eight of the ten biggest power projects under China’s ambitious Belt and Road Initiative (BRI) as of 2019 are in Pakistan, within the #China Pakistan Economic Corridor (#CPEC). The combined capacity of the ten biggest BRI power projects is 20.97GW, out of which Pakistan’s share is 9.57GW (45%). Power-technology lists the biggest power projects under the BRI, based on capacity.

The top ten biggest power plants under the Belt and Road Initiative: Ranking the BRI power projects

10. Suki Kinari Hydropower Project, Pakistan

9. Quaid-e-Azam Solar Park, Pakistan

8. Kohala Hydel Project, Pakistan

7. Thar Mine Mouth Oracle Power Plant, Pakistan

6. SSRL Thar SEC Mine Mouth Power Plant, Pakistan

5. CPHGC Power Plant, Pakistan

4. Sahiwal Coal-fired Power Plant, Pakistan

3. Port Qasim Power Project, Pakistan

2. Hassyan Clean Coal Project, UAE

1. Kayan River Cascade Hydropower Project, Indonesia
 
Chinese Company Grants $1.2bn For Gwadar Port's Development: Sub-committee Told

The sub-Committee of the Senate Standing Committee on Maritime Affairs was told on Friday that the China Overseas Port Holding Company (COPHC) had given a grant of US$1.2 billion to carry out the development work in the area of Gawadar Port.

"The China desires to see Pakistan as a prosperous state," Chairman COPHC Zang Baozhong said while briefing the sub-committee about the issues faced by the company for the area's development.

The panel, which met here with Senator Kauda Babar in chair, called for expediting the work in Gwadar Port and facilitating the local and foreign investors while reviewing various issues pertaining to the port and its investors.

The committee chairman appreciated the interest of Chinese investors in the development of Pakistan and promised all-out support to them for executing the development projects in the area, assuring the company that their issues would be resolved on priority.

Taking up the issue of Internet connectivity with the PTCL, the Committee took exception over its demand and summoned the Secretary Ministry of Information Technology in the next meeting along with the telecommunications' company senior officers to discuss the issue at length.

The Ministry of Maritime Affairs assured the Committee that the issue was being persued vigorously.

Discussing the establishment of the Transit Trade Directorate at Gwadar Port, the committee was informed that the matter was under discussion and the meetings with the Ministry of Commerce and the Federal Board of Revenue (FBR) were being held.

Gwadar Port was fully equipped with the facilities that are required to handle variety of shipments, it further informed.

The committee was briefed that the Pakistan Revenue Automation Limited had rolled out the WeBOC transit trade module in the area while a User Acceptance Test (UAT) was in the anvil.

The Ministry of Commerce informed the committee that the negotiations were being carried out by bonded careers such as the National Logistic Cell and Pak-Afghan Cargo Services.

A Special Incentives Package had been offered to the Afghan Transit Traders the ministry officials said while briefing the committee about development of system that would help direct all Afghan transit trade from Karachi to Gwadar.

Chairman Committee, Senator Kauda Babar was of the view that Gwadar would never want to deprive Karachi of business, however, those who wished to use Gwadar Port must be facilitated.

Discussing Tax exemptions pertaining to Gwadar Port and GFZ, the Committee was informed that the matter was under review at the Ministry of Law and Justice for its recommendations.

Reviewing the progress on Eastbay Expressway, the Committee stressed the need to protect the interest of locals. It was recommended that the Planning Commission be summoned in the next meeting to review the matter in greater detail.

Chairman Committee directed the Gwadar Port Authority to expedite all matters so that the Port may become fully operational by October 15, 2019, after which the Committee would visit the site.

The Ministry of Commerce, FBR and Custom Directorate were directed to brief the Committee regarding the existing rules and regulations related to the development of a zone at the port where the Chinese trawlers could store fish caught in international waters for the export.

The meeting was attended by Senator Moula Bux Chandio, and senior officers from the Ministry of Maritime Affairs, Gwadar Port Authority FBR, PTCL along with all concerned.

https://www.urdupoint.com/en/business/chinese-company-grants-12bn-for-gwadar-port-716784.html
 
China To Provide 100 Smart Class Rooms, Seven Research Centers To Pakistan: Envoy

Ambassador of China to Pakistan Yao Jing on Monday said that Chinese government will provide 100 smart classrooms and seven agricultural research centers to different Pakistan Universities.

He stated this while addressing the inaugural ceremony a five-day training workshop on "Resource & Environment Scientific Data Sharing and Disaster Risk Reduction Knowledge".

It was organized by the China-Pakistan Joint Research Centre on Earth Sciences (CPJRC) and Department of Earth Sciences, Quaid-i-Azam University(QAU) Islamabad.

The training program is aimed at providing technical training support for the establishment of a data sharing network serving the China-Pakistan Economic Corridor(CPEC).

The program would also provide software's, standards services, resource construction and other technical training.

Speaking on the occasion he said that during the tenure of current government of Pakistan, China-Pakistan Economic Corridor (CPEC) project has moved to a new stage of broadening the cooperation.

He said areas like industry, agricultural and social sector, especially education, have been included and emphasized in the CPEC Project.

The Chinese Ambassador informed the audience that through major scholarship program, all the top universities and institutions in China will be open for the Pakistani talented students.

"China-Pakistan Joint Research Centre on Earth Sciences (CPJRC) at QAU is a pioneer in the area of educational cooperation. It is solidly funded and well-planned projects by both governments, he added.

The Ambassador said :"The Chinese government, embassy, relevant ministries and Chinese academy of Science would be a strong partner in the project.

" Prof. Dr. Muhammad Ali, Vice Chancellor, Quaid-i-Azam University said : "It's a historic day for Quaid-i-Azam University, as we have inaugurated and formally started the activities of the mega project, China-Pakistan Joint Research Centre on Earth Sciences (CPJRC).

He said it was Rs.8.4 billion worth project, mainly funded by the Chinese Government. He also mentioned the need of cultural joint research centre between the two countries, to which the ambassador of China agreed.

He thanked the Chinese Government, Higher Education Commission (HEC) and Chinese Academy of Sciences for the efforts to materialize the project.

Earlier Prof. Hong Tianhua, Director, CPJRC briefed the audience regarding the Project and objective of the Workshop.

He said the objective of the center is to join efforts of both Chinese and Pakistani scientists for carrying out scientific research on natural disasters, environment, ecology, climate change and sustainable development in Pakistan, especially along the China-Pakistan Economic Corridor.

"To help and strengthen the capacity building of the young scientists in Pakistan, CPJRC will also conduct a series of training workshops in the years to come" said the Director.

Dr Safdar Ali Shah, focal person on CPJRC from HEC and UNESCO Representative for Pakistan Ms. Vibeke Jensen also addressed the audience.

A large number of diplomats, government representatives, and headof the institutions, Vice Chancellors, faculty and students attendedthe event.

https://www.urdupoint.com/en/pakistan/china-to-provide-100-smart-class-rooms-seven-724646.html
 
ISLAMABAD: Prime Minister Imran Khan has decided to offer handing over Pakistan Steel Mills (PSM) to China through government to government deal and exploring options to finance multi-billion dollars railways Mainline (ML-1) during his upcoming visit of Beijing.

Pakistan’s top leadership will give assurances to Chinese side that China Pakistan Economic Corridor (CPEC) would not slow down, but its next phase would be pursued with zeal and vigour despite passing through under the IMF programme.

In his upcoming scheduled visit of China from October 07, 2019, the prime minister has decided to take up five issues for enhancing economic cooperation under CPEC. Pakistan will offer China to get PSM, finalise deal on modernisation of ML-1, financing of Bunji hydropower project, agriculture and social sectors-related projects in and outside the ambit of CPEC.
 
China and Pakistan have decided to expedite work on the western route in the second phase of China Pakistan Economic Corridor project. Both sides agreed to construct 1,270 Kilometres of roads from Gilgit to Chitral and D. I. Khan to Zhob
 

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