ISLAMABAD, Nov 22: Pakistan will get around $1.5 billion package of bank deposits and investments from China when President Gen Pervez Musharraf visits Beijing next month, diplomatic sources told Dawn.

The president is scheduled to pay a four-day visit to the friendly country from Dec 20-24 to reciprocate Chinese premier Zhu Rongji’s visit here early this year, official sources said.

The package includes around $500 million of bank deposits, $50-100 million of credit, Rs2 billion ($33 million) investment in a holding company, besides agreements on at least four power projects and mega Thar coal project, the sources said.

The two sides would also sign an agreement on rollover of three Chinese deposits worth $500 million it had kept with the National Bank of Pakistan as balance of payment support for Pakistan. The deposit would be rolled over for a further period of three years beyond February 2002.

An agreement for the establishment of Pakistan-China Joint Holding Company (PCJHC), with a minimum paid-up capital of Rs2 billion would also be signed. Both the countries would contribute Rs1 billion equivalent amount each. The holding company is expected to comprise six members, besides a managing director and a chairman.

The Chinese Export-Import (Exim) Bank would provide a credit line of $50-100 million to a Pakistani bank for the purchase of textile machinery and equipment from China by the Pakistani importers. Commerce Minister Abdul Razak Dawood is currently in Beijing to finalize details of this agreement.

Pakistan would also be signing an agreement with Shenhua group of China for the development of Thar Coal Mine and setting up of a coal-fired power plant in Sindh. The contract is being offered to Shenhua group through negotiations instead of an international competitive bidding as originally planned.

Minister for petroleum and natural resources Usman Aminuddin is expected to finalize details of this agreement when he visits Beijing later this month.

The Water and Power Development Authority and the NWFP government are expected to award contracts of three hydel power projects to Chinese companies. The projects, Allai Khwar, Khan Khwar and Duber Khwar, are in the NWFP and would be fully financed by the Chinese banks.

The power contracts are also being awarded to Dongfong group of China on negotiation basis provided they gave full finances. The sources said Chinese diplomats had a meeting with Chairman Wapda Lt-Gen Zulfiqar Ali Khan early this week to finalize technical details.

These projects were earlier offered to the private sector through international competitive bidding in 1999 but investors’ response was poor because of post-nuclear sanctions. This time around, the projects are being offered to China through negotiations

The two sides will also reach agreement for the purchase of an Oceanographic Research Vessel by Pakistan from China besides a cooperation agreement for establishment of model agricultural farms.

The Wapda is also expected to award the contract for 500kv Muzaffargarh to Gati substation worth $200 million to the CMC of China. A letter of support issued to National Power of UK was cancelled in the mid-90s before the project could take off.