China to finance three more road projects under CPEC
92
ISLAMABAD: Beijing has pledged to finance three more road projects under the China-Pakistan Economic Corridor (CPEC), making its total contribution to the corridor-related road projects to Rs1.025 trillion so far.
China will provide Rs107.76 billion as soft loan for the three new projects, National Highway Authority (NHA) spokesman Kashif Zaman told Dawn on Monday. It is already providing Rs917bn for another three road projects.
The three new projects to be financed by China fall on the western route of the corridor. They include a 280-kilomtre road from Raikot to Thakot at a cost of Rs8bn, 210km dual carriageway from Yarik to Zhob (Rs80bn), and a 110km road from Basima to Khuzdar (Rs19.76bn).
An agreement will be signed between the two countries in this regard in China-Pakistan Joint Cooperation Committee (JCC) meeting to be held on Dec 29 (Thursday) in Beijing. Federal Minister for Planning, Development and Reform Ahsan Iqbal, NHA chairman Shahid Ashraf Tarar and other senior government officials have already left for China.
The spokesman said secretary communications and the NHA chief visited Beijing last month where China agreed to finance the three projects as part of the second phase of the CPEC.
He said the 144km portion of the Raikot-Thakot road has already been improved with Chinese grant while China has now agreed to pay $80 million (over Rs8bn) for the remaining portion. “This is a new alignment which was damaged in the 2010 floods,” the spokesman said.
As for Yarik-Zhob dual carriageway, he said the National Engineering Services of Pakistan has already prepared a feasibility study, and China will provide Rs80bn for it with completion time of 2020. The third project, the Basima-Khuzdar road (N-30), will get Rs19.76bn.
During the upcoming JCC meeting, overall progress of the CPEC would be reviewed. According to the Ministry of Planning, Development and Reform, senior officials from both countries will meet a day before the JCC meeting to give final shape to the new agreements.
Mr Iqbal, the planning minister, would also hold meeting with the Pakistan embassy officials before the Dec 29 meeting.
On the western route of CPEC, a 650km road from Gwadar to Surab has already been completed, the minister has said, adding that it would help uplift the socio-economic lives of people living in the underdeveloped areas of Balochistan.
The road from Burhan to D.I. Khan would be completed by 2018 and a two-lane road from D.I. Khan to Zhob has also been approved, he said.
During the JCC meeting, the Pakistani side will also discuss with China officials the establishment of industrial zones along CPEC’s Gwadar projects.
Published in Dawn December 27th, 2016
Read more
On DawnNews
Dec 27, 2016 09:35am
Well Done China!
Long Live China Pakistan Friendship
Recommend
0
Dec 27, 2016 09:44am
This is going to be exact parralel play of Trans Cananda Highway in Canada followed by over 120 billion dollars Trans Canada pipe line and Enbridge pipe line to transport 6 trillion cubic feet of gas per year. China is looking at even more gas from middle East to even half catch up with America. In oil refining China has accomplished that more than half catch up.
The future looks bright for both China and Pakistan. Keep up with the good works.
Recommend
0
Dec 27, 2016 09:48am
CPEC project is a game changer project. Long live PAK China friendship.
Recommend
0
Dec 27, 2016 09:52am
" China' s total contribution to the corridor-related road projects will be Rs1.025 trillion"
That shows the inherent strength of the Project. Owner's Pride ..and neighbour's Envy ! Long Live China !!
Recommend
0
Dec 27, 2016 10:02am
Sorry to say, for roads and basic infrastructure we are looking for outside help. Pity on ourself that still we feel proud.
Recommend
0
Dec 27, 2016 10:20am
Wow.
Recommend
0
Dec 27, 2016 11:40am
Pak cheen dosti zindabad!!
Recommend
0
Dec 27, 2016 11:44am
China will get interest on these loans as well as it will not pay toll as well. Good for China
Recommend
0
Dec 27, 2016 11:46am
All sounds good and nice. But i would say, be careful guys. Remember its all loan and needs to be repaid. More the loan, more the interest money that you have to pay. 1 Trillion USD is a huge huge money. The projects will get completed, say by 2020, but the monthly installment will start from next month. My suggestion would be, first complete the current project, then once this is giving a return go for a new loan.
Recommend
0
Dec 27, 2016 11:44am
Great Progress. Looking forward to see a prosperous Pakistan very soon
Recommend
0
Dec 27, 2016 12:14pm
@S, Any help from China is welcome for the future of Pakistan.
Recommend
0
Dec 27, 2016 12:45pm
@Dr Siddique I hope you know that it is all loan. I also hope you know that in India a businessman built a $2 billion house for himself. Also hope you know we collected more than $80 billion in just 2 months in tax so we don't need outsiders to build our nation. We ask for Investments, not aid.
Recommend
0
Dec 27, 2016 12:58pm
@S Its Foreign Investment. You are lucky someone is investing.
Recommend
0
Dec 27, 2016 01:07pm
The real hero behind the CPEC is Pervez Musharraf... The main thing is The Gwadar Port constructed under him and he invited China to utilize this route for the trade.. he committed to support Chinese navy through this port.
Recommend
0
Dec 27, 2016 01:28pm
Yahoo!! Chinese will in the coming years run the federal government too as they clearly do a much better job. Damn you England for leaving us!!
Recommend
0
Dec 27, 2016 01:55pm
Good friendship, China is participating in infrastructure projects in Pakistan. In Bangladesh too. A Chinese firm, China Major Bridge Engineering Company Ltd is constructing the Padma bridge with 3 billion dollars. But difference with the Pakistani projects with Padma bridge is that BD is financing this project 100% with its own money.
Recommend
0
Dec 27, 2016 02:20pm
Industry and agriculture in decline, poor record on tax collection, financially leaky economic policies, not so transparent and unccountable governance, ever larger and growing debt burdens. Is anyone doing any math as to how those national obligations are going to be met. With more debt and that for how long and how?
Recommend
0
Dec 27, 2016 02:29pm
@Mirza Mahmud Askari, Dhaka The question is Does Bangladesh has $ 3 Billion dollars? and if they do then what China has do with it? if Bangladesh can do things on its own.
Recommend
0
Dec 27, 2016 02:33pm
Outsider giving lot of loan which common people will have to pay by more taxes, charges, toll tax etc. It is beneficial for China and politicians only.
Recommend
0
Dec 27, 2016 02:45pm
@sam: Nowadays BD's foreign exchange reserve is highest in this subcontinent after India. BD selected a Chinese firm through a tender process to construct almost 7 km long Padma bridge. If you want to know more about Padma bridge, one of the longest bridges in our subcontinent, please google it for the information.
Recommend
0
Dec 27, 2016 02:54pm
@Mirza Mahmud Askari, Dhaka Well if this the case then congratulations to you and your country, and we pray that your country do well in future. But please let Pakistan my country do whatever we feel is better for us
Recommend
0
Dec 27, 2016 02:58pm
As an Indian also I think it is a huge huge investment (1.025 trln pkr ~ 9.8b$) . Geopolitics of subcontinent is taking whole new direction.
Recommend
0
Dec 27, 2016 03:01pm
Foreign Exchange reserves India $363 b , Bangladesh $ 32 b and Pakistan $ 18 b
Recommend
0
Dec 27, 2016 03:02pm
good
Recommend
0
Dec 27, 2016 03:10pm
China has to come construct roads in remote areas. What else do we want from them. If we can correct our judicial system that can hold corrupt people onquick time, Pakistan can become a fully developed country in short span of time. Why not ask Chinese to build water dams and reservoirs for us. This might be a very good idea.
Recommend
0
Dec 27, 2016 03:14pm
Kidos to Pak-China friendship.
Recommend
0
Dec 27, 2016 03:20pm
@viv Population of India is over 1.2 billion compare to its $$ reserves . Resources of Bangladesh and compare the Size of Bangladesh which is 1/4 of Pakistan but the population is same as Pakistan . Keep this in mind too. Apart from Pakistan International Positioning. Pakistan stock exchange has out performed not only south Asia but many major stock exchange of the world. I rest my case. Long live Pakistan.
Recommend
0
Dec 27, 2016 03:30pm
I see slow creation of another greece....good luck !!
Recommend
0
Dec 27, 2016 03:34pm
@SAM brother my comment is not for demeaning any country and please do not take it otherwise. What we should learn from BD is to promote exports and maintain right economic policies which can be achieved with internal reforms.Without serious reforms , all these loans will only add to debt woes which is already at an alarming level.
Recommend
0
Dec 27, 2016 03:42pm
I think all the countries who are worry so much about CPEC should worry more about there own people, why waste time on CPEC. It seems like all the problems of those countries who are against CPEC have been solved, and all they are left with is CPEC to worry about. Countries like India , Bangladesh where half of the population is living on the streets should take care of them, instead of being concern about who is building what in Pakistan and who will pay off Pakistan CPEC loan.
Recommend
0
Dec 27, 2016 03:50pm
@viv Pakistan is a Institution within itself we learn things from are own experience we don't need to learn from Bangladesh experience , what is good for India is good for India, and what is good for Bangladesh is good for Bangladesh. But one thing for sure for Pakistan CPEC is the GAME CHANGER and we will make it happen.
Recommend
0
Dec 27, 2016 03:52pm
Soft loans has to be paid back. Tolls are not applicable for Chinese trucks , So toll alone can not recover the cost. At 1% interest per year on 1. 025 Trillion interest alone is a big amount. But money has to come from somewhere thats fine but recovery has to be thought about
Recommend
0
Dec 27, 2016 04:38pm
What these leaders are doing, seems and tested, have no brains at all?
Recommend
0
Dec 27, 2016 04:54pm
What other options do they have but to immediately complete the historic multi-billion dollar project?
Recommend
0
Dec 27, 2016 05:02pm
China is doing its part.
What we need to do? Bring in as much man power from Balochistan as possible for the construction works or even as trainees.
Even the tribesmen, when paid well and remain busy, will forget about the path on which their sardars are leading them, while strengthening their seats and spreading anarchy in the province.
If youth from Balochistan can serve in army, why can't FWO and NHA recruit as many as possible for the construction and development works?
I hope that with the support of this forum, my message is received and understood by the concerned authorities.
Recommend
0
Dec 27, 2016 05:01pm
According to the history of road development projects in Baluchistan, 90% of allocated amount will be consumed by corruption only 10% would be utilized for actual development. Within one year it would be hard to find the road but just a shade of road.
Recommend
0
Dec 27, 2016 05:08pm
@Dr Siddique dude there is no envy in neighbour. Neighbour has projects bigger than CPEC by many times.
Recommend
0
Dec 27, 2016 05:22pm
@S well said,
Recommend
0
Dec 27, 2016 05:26pm
@u lAL. Right said Fred. .for example, US investment in 1 solar energy project in itself is $100bn! So no envy on paying back loans.
Recommend
0
Dec 27, 2016 05:35pm
@sam
" Pakistan is a Institution within itself we learn things from are own experience "
After 70 years Pakistan is way behind compared to the neighbouring countries.
And considering prevailing borrowing and foex reserves as well as forex earnings capacity , Pakistan will have to cut down or abandon many development projects in other pressing areas. Think about it and change your model of development.
Recommend
0
Dec 27, 2016 05:47pm
Please think about smart cities along with cpec industrial zones.
Recommend
0
Dec 27, 2016 05:52pm
@S ..Pity on you for being petty minded and not understanding the facts.
Recommend
0
Dec 27, 2016 06:07pm
@Mirza Mahmud Askari, Dhaka ..Keep watching and see how things change,come back in two years time then compare and try to boast.
Recommend
0
Dec 27, 2016 06:24pm
@S "Sorry to say, for roads and basic infrastructure we are looking for outside help. Pity on ourself that still we feel proud."
you nailed it bro.
Recommend
0
Dec 27, 2016 06:32pm
How much worth of contracts have been awarded to Pakistani Contractors in CPEC?
Recommend
0
Dec 27, 2016 06:42pm
This adds another $ 9.5 billion to the $ 46 billion CPEC, making it a $ 55.5 project, as at present.
Recommend
0
Dec 27, 2016 06:56pm
Congratulations from a neighbor. Wish Pakistan to be prosperous and productive country. This has lot of good implications for the whole subcontinent.
Recommend
0
Dec 27, 2016 07:03pm
Nothing comes for free.
Recommend
0
Dec 27, 2016 07:05pm
@South Asia: Your burning heart refuses to feel and would never feel the real essence of CPEC. It is nowhere stated being a loan to Pakistan and still being built by the Chinese. Remember immediately after Partition, Pakistan had requested India to allow making a transport corridor from West to East Pakistan?
Recommend
0
Dec 27, 2016 07:08pm
@Rohit Singh - Feeling "proud" is something you guys prerogative that you use on any bit of good news, not us. That was your guy too!
Recommend
0
Dec 27, 2016 07:07pm
That's good. But if China is financing all of your road and infrastructure budget. Then why don't the national government spent other of its own budget on education and healthcare . Only making roads and ports is not gonna help unless the mindset of the people change . Gov should focus on education and healthcare.
Recommend
0
Dec 27, 2016 07:17pm
Good news. Need more construction projects in province of Baluchistan and KP province. How about constructing some industries to create skilled jobs in those provinces, more than labour jobs only.
Recommend
0
Dec 27, 2016 07:38pm
@M.Saeed It is a loan but so what? The Chinese will ensure that Pakistani society is changed.
Recommend
0
Dec 27, 2016 07:44pm
@Khwarezmi They never left you. Only others have joined. There is still much left in the golden sparrow.
Recommend
0
Dec 27, 2016 07:57pm
The unmitigated anguish of trolls from Bangladesh and Baniyadesh tells me that this project is good for Pakistan.
Recommend
0
Dec 27, 2016 08:00pm
@Raddi in you're dreams one Trillion US dollars. It is Pakistani RS and that is a loan as well.
Recommend
0
Dec 27, 2016 08:18pm
Financial viability is critical.
Recommend
0
Dec 27, 2016 08:23pm
The comments by Indian readers are full of concern for Pakistan's well being. Don't worry we will be fine. China and Pakistan are trusted friends!
Recommend
0
Dec 27, 2016 08:29pm
@PK
Best of luck!
Recommend
0
Dec 27, 2016 08:30pm
Isolated Pakistan?
Recommend
0
Dec 27, 2016 08:44pm
china is financing roads for his own need, same goes for that 45 billion.what matters is that are we going to get any benefit in form of royalty or just be happy with the thought that we will have 2-3 good roads with chinese trucks. i was wondering have we evaluated that environment affect due to increase of traffic.i would be more happy if china finance tree plantation as well on massive scale
Recommend
0
Dec 27, 2016 09:16pm
Whoever is commenting here (out of jealousy or something else) should know that any development (even by paying interest) is good than not doing anything. Yes we will end up paying interest but if your socio-economic situation becomes stable and if people start making their lives better by these projects then so be it, eventually we will get out of the interest and will be able to build more on our own, for now Pakistan did not have a choice. So this to me is a positive step, and pls neighboring country people go and watch Arnab and stop commenting on our affairs.
Recommend
0
Dec 27, 2016 09:20pm
Folks this is good news but note of caution. Idea of "If you built they would come" is old. I have lived in west for long time now and see lot of projects that did not Pan out as they were supposed to. Is this direct investment where foreign entity is equally responsible to the returns. Do you have understanding about business model through which this will be paid back and how much time wold it take for this project to turn black. There are now examples wherein China "invested" and host countries are now reaching out to World Bank for debt servicing. What kind of guarantees is government giving. Any details
Recommend
0
Dec 27, 2016 11:21pm
China is smartly creating loan burden on Pakistan.
Recommend
0
Dec 27, 2016 11:36pm
Am glad if CPEC helps Pakistan. But can some article from Dawn explain how? Isn't it cheaper to trade by sea than by road? I read somewhere that the sea trade is 1% of road trade. What will China import from Pakistan? Let's assume China does export its stuff to Pakistan, then will it not destroy jobs/livelihood? OK,. Now CPEC will go all the way to ME, Europe, if so, Most countries are trying to close their doors to China as their economies will collapse. It also doesn't make economic sense for China as well. Can any author come out with a clear time bound article showing sources of ROI from CPEC to both China & Pakistani's.
Recommend
0
Dec 28, 2016 12:00am
@South Asia you are right we should not be happy about this, you truly are our well wisher
Recommend
0
Dec 28, 2016 12:11am
@Murtaza-sorry brother we have been telling you the same for the past 70 years but if you had listened......
Recommend
0
Dec 28, 2016 12:18am
the bill to China has gone to $51 billion and the end is not in sight
the higher the bill the better it is for India
Recommend
0
Dec 28, 2016 01:50am
@Raddi Sorry sir it is 1 trillion Rupees and not $
Recommend
0
Dec 28, 2016 02:56am
@Mustafa R. Lovely comment bro.agreed 100%
Recommend
0
Dec 28, 2016 03:25am
@Jamshed made in China. Come on, no one can trust that.
Recommend
0
Dec 28, 2016 04:55am
More loans?
Recommend
0
Dec 28, 2016 04:56am
@S u really have no clue do u.
Recommend
0
Dec 28, 2016 05:53am
@Khwarezmi Colonisation of Oakisthan Eventually by China
Recommend
0
Dec 28, 2016 06:00am
I hope you finish this project soon.
It was targeted for $40 billion and I have heard that it far above that ?
Is that true?
Is the public keeping an eye on the costs ?
Recommend
0
Dec 28, 2016 06:32am
China is really a good friend of Pakistan. The only worry is after comlition of the project china will dictate the term with us. This is not good for Pakistan but what a project!
Recommend
0
Dec 28, 2016 07:05am
Sweet, development is always good. China sees a lot of returns from CPEC, so it is a win-win for both countries...
Recommend
0
Dec 28, 2016 09:21am
@Murtaza : Great point and completely agree, the concern I feel that is being overlooked is the way China is asserting itself in South China sea. Its preceived hunger for dominanace and expnasion is scary. Best way forward would be to sudy the ground reality (ability/inability) of countries like Cambodia/Laos /African nations to take a stand against China if needed (eg: Its recent policy asking certain section of people to handover their passports) without being coerced because of financial dependence and slowly loosing sovereignty to govern your own country independently of influence. FDI is completly different from aid. Support to CPEC needs to be studied to make sure expansionist tendencies is not being promoted
rather than just brush aside concerns as envy. Wish well and good luck to Pakistan
and hope CPEC brings a lot of prosperity to everyone.
Recommend
0
Dec 28, 2016 09:36am
Those who are complaining about the loan should know that there are some states in US where the tax rate is 50% of your income yet we say America is great. In a similar scenario, if we get the high living standard with 20% income tax....then how this is the bad deal?
For God sake, please stop comparing us with India...we were similar once but now we are different with each other in many things and we cant judge our economy based on their economy.
Recommend
0
Dec 28, 2016 12:59pm
@Arman Pakistan is on the right track. If you visit any city of Pakistan today you will see development everywhere . Days are not far away when Pakistan will emerge as a Asian super Power. India owes more money in form of loans then Pakistan and India $336 billion Forex divide among its 1.2 billion people compared to Pakistan $18 billion in Forex with only 200 million people gives Pakistan an edge over India.
Recommend
0
Dec 28, 2016 01:42pm
@sam Well said, Sam.
Recommend
0
Dec 28, 2016 03:19pm
@South Asia....very well said...bravo
Recommend
0
Dec 28, 2016 05:51pm
@sam Bangladesh economy is stronger than Pakistan's.
Recommend
0
Dec 28, 2016 07:00pm
Is China also investing in education and medical sectors?
Recommend
0
Dec 28, 2016 07:13pm
@Valiya ...So what ?.Who cares !
Recommend
0
Dec 28, 2016 07:20pm
@Valiya ..Whats your point ?, what are you trying to prove ?.The news here is about Pakistan.
Recommend
0
Dec 28, 2016 10:07pm
I love CPEC and it could be a big game changer only when the local population is provided the direct and immediate jobs. We just should not wait for the indirect jobs and opportunities.
Recommend
0
Dec 28, 2016 11:33pm
Good news for Balochistan and KPK
Recommend
0
Dec 29, 2016 07:51am
@sam
Should go to China and see the condition of the production workers or the bonded workers of Pakistan.
Recommend
0
Dec 29, 2016 11:14am
@sam 1.2 billion = 1200 million (336 billion)
200 million * 6 = 1200 million
18 * 6 = 108 billion
Still don't understand that how it gives Pakistan an edge over India. May b its Math which i am sure is not your area of expertise. Anyways i wish CPEC would be game changer for Pakistan
Recommend
0
Dec 29, 2016 09:57pm
@Ahsan well done Pakistan too.
Recommend
0
Dec 29, 2016 11:32pm
@sam: Yes, Bangladesh is financing the project 100%. A Chinese construction company along with some local companies have been chosen to build this mega multipurpose bridge.
Recommend
0
