ISLAMABAD: Ahead of Prime Minister Shehbaz Sharif’s visit to China next week, Pakistan cleared construction of about 241 km of the high-altitude Karakoram Highway at an estimated cost of Rs567.5bn (approximately $2bn) to be funded through a ‘Chinese soft loan’.
This was one of the Rs609.45bn worth of two infrastructure projects the Central Development Working Party (CDWP) recommended to the Executive Council of the National Economic Council (Ecnec) for formal approval. The KKH is part of the multi-billion dollar China-Pakistan Economic Corridor and is expected to be approved by a special meeting of the Ecnec before the prime minister’s departure to Beijing on June 4. “The project is proposed to be financed through a Chinese soft loan” worth RMB 14.775 billion,” announced the Planning Commission.
The other project cleared at a meeting partially and separately presided over by Deputy Chairman Planning Commission Muhammad Jehanzeb Khan and Secretary Planning Awais Manzur Sumra, included Rs42bn worth of 108MW Golen Gol Hydropower project in Chitral, Khyber Pakhtunkhwa, which is also a foreign-funded project. The sources of financing are OPEC Fund for International Development ($30m), Saudi Fund for Development ($97.8m), Kuwaiti Fund for Arab Economic Development ($52.5m) and USAID ($35.6m grant).
Under the current financial rules, the CDWP is empowered to approve projects costing up to Rs7.5bn, while Ecnec approves the higher estimated schemes based on the CDWP’s recommendations after clearance on technical grounds.
Approval accorded ahead of PM’s crucial visit to China next week
The first phase of the KKH cleared by the CDWP envisages upgrading, improving, and realigning the KKH from Thakot to Raikot Bridge. The total length of the road is 241.086 km, with the mainline of KKH of 224.911 km and link roads of 16.175 km.
The project includes upgrading KKH from Thakot to Dasu with a 103-km bypass, exclusive relocation of KKH at Dasu dam being done by Wapda, upgrading the exciting road from Sazin to Thor Nullah and R-1, and new construction of KKH after Basha-Thor Nullah. The project will be completed in 5 years.
The entire KKH has about 806km distance between Hassan Abdal in Punjab near Islamabad and the Pak-China border and a part of the historic Silk Route.
The meeting also recommended the Golden Gol Hydropower Project to Ecnec for approval. The project is estimated to generate 476 GWh annually. The project was commissioned in 2019 and has generated a total of 730 million units till Feb 28 this year. The project cost had increased from Rs7bn to Rs42bn due to delays and other lapses over a period of 12 years and an inquiry committee held Wapda responsible last year.
Published in Dawn, May 31st, 2024
