October 11, 2001	Thursday	Rajab 23, 1422

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ISLAMABAD, Oct 10: Notwithstanding the increased presence of the US forces in the region, China has asked its companies to expedite their multi-million-dollar investment projects in Pakistan, official sources told Dawn on Wednesday.

The mega infrastructure projects like Gwadar Port and Makran Coastal Highway have, however, been put on hold in view of the uncertainty arising out of close proximity of the US military presence to that region, these sources said.

No formal communication on Gwadar port and Coastal Highway projects has so far been exchanged but it is understood that progress could not be made on the two as long as the US forces were present in the region, said a senior government official, requesting anonymity.

The official, who was involved in the recent Pakistan-China interaction on infrastructure projects and investment did not rule out US attacks on Afghanistan “as part of a big game” to restrict Chinese anticipated influence in the central Asian states through these two projects in Pakistan.

These sources said that employees and engineers of Dong Fond, the Chinese company involved in the construction of the $2.5-billion Ghazi Barotha Hydro Power project and China Petroleum involved in the $500-million White Oil Pipeline Project, who had earlier left Pakistan after Sept 11 events in Washington and New York, have been directed by the Chinese government to report back to their projects and resume normal work.

These sources said that at least three big companies involved in the telecommunications sector were advised well in time by Beijing not to get panicky and continue their operations normally.

The two governments are now contemplating arranging a signing ceremony of a lease agreement for the transfer of Rs16-billion Saindak Copper-Gold Project to China Metallurgical Corporation sometime between Oct 15 and 20.

Official sources agreed that there was some delay in the visit of petroleum minister to China but said that the draft agreement was finalized on Sept 27 in Islamabad and handed over to the authorities in Beijing.

Because of holidays in China, the approval process of the agreement would now be completed by Oct 15. These sources however agreed that the signing ceremony may go beyond end of this month because of an international conference in Beijing in case it could not be arranged during Oct 15 to 20.

Similarly, two separate delegations of Shenhua group of China are also scheduled to visit Islamabad during the last week of this month to hold negotiations on Thar coalfield development.

Islamabad is already considering a proposal to increase import duty on coal from existing 10 per cent to 30 per cent to encourage local production that, many believe, would particularly benefit Chinese companies in Thar coal development.

The feasibility study would be submitted to the ministry of water and power for the bidding of a power plant, keeping in view the status of Shenhua Group work on Thar coal-based minemouth, integrated coal-fired power project.

The ministry of railways has also been asked to look into the possibility of undertaking Karachi-Hyderabad-Badin-Islamkot or Karachi-Hyderabad-Mirpurkhas-Naukot-Islamabad rail-link on the basis of cost-effective and commercially-feasible construction.

The Shenhua group has demanded one, out of four blocks in Thar coalfield, with at least one billion tons of coal reserves. Under the GSP study, Block I, II, III and IV have coal reserves of 3.56 billion tons, 1.584 billion tons, 2.008 billion tons and 2.48 billion tons respectively.

It has advised co-generation approach (meaning minemouth power generation plant with associated captive coal mine) as the priority development option. At a later stage, the complex could produce coal briquettes to supply to the consumers in Sindh.

Around 175 billion tons of coal is spread over 9,000 sq-kms of Thar desert and the main coal bed thickness ranged from 12 to 21 metres at an average depth of 170 metres.