China-Pakistan Economic Corridor: PM approves over $38bn projects

[dawn_news]

ISLAMABAD: Prime Minister Nawaz Sharif has approved the over $38 billion worth China-Pakistan Economic Corridor prioritised/early harvest projects and directed the Ministry of Planning and Development to seek approval of the federal cabinet prior to formally signing an agreement with China.

Documents also revealed that planning ministry has included high priority early harvest projects (HPEHP) worth $34.490billion. Some of the projects with estimated cost are mentioned in below for convenience: 2x660mw coal based power projects (IPP) at Port Qasim with estimated cost$1.800billion, Jetty plus infrastructure of Gaddani as IPP (preferably) or public sector with estimated cost of $1.000b, 10x660mw coal based power project at Gaddani $9.000b, Power Evacuation from Gaddani to National Grid (IPP) $2.000b, 3.5MT/A coal mining project Thar Block-II SECMC $0.800b, 2x660mw coal based power projects at Sahiwal (Government of Punjab) $1.800b, 2x660mw coal based power projects at Sheikupura (IPP) $1.800b, 2x330mw Thar power coal plant SCMC $0.800b, solar power park at Bahwalpur $0.160b, 2793mw (Three) hydro power projects with estimated cost of $3.00billion, Karakoram high way (phase-II) with estimated cost of $3.500b, rehabilitation & up gradation of Karachi-Lahore plus Peshawar (ML-1) Railway track with estimated cost of $3.650b, Gawadar Package $1.060b, Orange Line (underground in Lahore) with estimated cost of $1.600b, Jhimpar wind power 200mw with estimated cost of $0.320b etc.

It was also learnt from the document that Karakoram highway (phase-I) up gradation and reconstruction of 487km, Karachi-Lahore motorway Multan-Sukkur section (375km), up gradation/rehabilitation of ML1, construction of dry port at Havelian, Eastway Expressway (18.9km), Gawadar International Port and many other related projects are part of the overall document approved by the premier. Energy sector projects are also included in the list of projects of the China-Pakistan Economic Corridor prioritized/early harvest projects that have so far been approved by the premier.

China-Pakistan Economic Corridor: PM approves over $38bn projects - PakTribune

Here is simple summary of projects

16x660mw=10560mw coal based power projects $14.40 billion
2793mw 3 hydro power projects $3 billion 720 MW Karot , 873 MW Suki Kinari and 1,100 MW Kohala.
up gradation of Karachi-Lahore plus Peshawar (ML-1) Railway track $3.650 billion
3.5MT/A coal mining project Thar Block-II SECMC $800 million
Orange Line (underground metro in Lahore) with estimated cost of $1.6 billion
2x330mw Thar power coal plant SCMC $800 million
Karakoram high way (phase-II) with estimated cost of $3.5 billion
Gawadar Package $1.060 billion

 

[Kompromat]

Lets hope for the best here.

 

[VCheng]

So who is financing all these projects? Where is the money?

Where is the famed railway line and oil pipeline all the way to China in this list?

 

[NP-complete]

N league has a history of announcing big projects without getting much done. There was that ghar apna scheme and karz utaro mulk suwaron etc before. Now this "Economic Corridor". Not much of this grand project will materialise in the next 4 years i am sure.

 

[SBD-3]

N league has a history of announcing big projects without getting much done. There was that ghar apna scheme and karz utaro mulk suwaron etc before. Now this "Economic Corridor". Not much of this grand project will materialise in the next 4 years i am sure.

For example?

 

[ziaulislam]

So ISLAMABAD: Prime Minister Nawaz Sharif has approved the over $38 billion worth China-Pakistan Economic Corridor prioritised/early harvest projects and...who is financing all these projects? Where is the money?

Where is the famed railway line and oil pipeline all the way to China in this list?

nearly all coal projects are private sector, 2 by asian bank.
hydro projects are funded by WB
wind projects again private funded
solar project bank of punjab funded
coal distribution infrastructure and rail infrastrutures will be funded via PSDP
karakurm through chinese loan
2 nuclear project via chinese loan
rest of minor infrastructure through PSDP
power reform through WB and asian bank

world bank will fund projects worth 12 billion dollars in next 5 years including 4 billion dasu 2200mw hydro, in addition to already funding of tarbeal IV and V =2900mw

in summary 1/2.5 (nearly 16 billion dollars) will come via world bank , asian bank and islamic developemnt back,IDF etc
1/3 via private investment
rest via chinese loan and PSDP

 

[Chinese-Dragon]

Infrastructure should be the priority for all developing countries.

And not just physical infrastructure, social infrastructure too (like education and health), as well as economic and administrative infrastructure.

 

[VCheng]

nearly all coal projects are private sector, 2 by asian bank.
hydro projects are funded by WB
wind projects again private funded
solar project bank of punjab funded
coal distribution infrastructure and rail infrastrutures will be funded via PSDP
karakurm through chinese loan
2 nuclear project via chinese loan
rest of minor infrastructure through PSDP
power reform through WB and asian bank
world bank will fund projects worth 12 billion dollars in next 5 years including 4 billion dasu 2200mw hydro, in addition to already funding of tarbeal IV and V =2900mw

in summary 1/2.5 (nearly 16 billion dollars) will come via world bank , asian bank and islamic developemnt back,IDF etc
1/3 via private investment
rest via chinese loan and PSDP

Much hope and hot air here. Little will be actually achieved.

 

[OrionHunter]

So who is financing all these projects? Where is the money?

Good to see initiatives beong taken for development.

However, the economic corridor is going to be financed wholly by China since it is basically for their use, for access to the Gwadar port.

As for funding for the rest, see post #6.

Now the billion dollar question is: When it comes to payback time.......Well, nuff said!

 

[VCheng]

Good to see initiatives beong taken for development.

However, the economic corridor is going to be financed wholly by China since it is basically for their use, for access to the Gwadar port.

As for funding for the rest, see post #6.

Now the billion dollar question is: When it comes to payback time.......Well, nuff said!

Post #6 is only much hope and hot air with very little substance.

 

[ziaulislam]

Much hope and hot air here. Little will be actually achieved.

well the 16 billion dollars projects from WB are not just talk unless the you believe in conspiracy theories.
the Chinese loan project are not just talk either, already physical owrk is going on and we have built ports and road and nuclear plants in thepast via those loans too.
thar coal mining is already going for ENGRO and they have delivered in past.
the only real issue will be gaddani coal projects, investor have sign Mou but nothing else yet..that can be put under the title "all talks but no work yet"

Good to see initiatives beong taken for development.

However, the economic corridor is going to be financed wholly by China since it is basically for their use, for access to the Gwadar port.

As for funding for the rest, see post #6.

Now the billion dollar question is: When it comes to payback time.......Well, nuff said!

30 years pay back for WB with just 2.5% percent interest, this is a freebie too be honest..the reason for those loans is USA strings to be honest
Pakistan to Receive $12 Billion World Bank Loan

deatials of worth 2 billion loans for coal projects by asian bank
Pakistan and ADB

Post #6 is only much hope and hot air with very little substance.

if you call world bank chief a lier than what can isay, i wouldnt argue with you if you call earth flat.
please join this society
Flat Earth Society - Wikipedia, the free encyclopedia

 

[VCheng]

well the 16 billion dollars projects from WB are not just talk unless the you believe in conspiracy theories.
the Chinese loan project are not just talk either, already physical owrk is going on and we have built ports and road and nuclear plants in thepast via those loans too.
thar coal mining is already going for ENGRO and they have delivered in past.
the only real issue will be gaddani coal projects, investor have sign Mou but nothing else yet..that can be put under the title "all talks but no work yet"



30 years pay back for WB with just 2.5% percent interest, this is a freebie too be honest..the reason for those loans is USA strings to be honest
Pakistan to Receive $12 Billion World Bank Loan

deatials of worth 2 billion loans for coal projects by asian bank
Pakistan and ADB

if you call world bank chief a lier than what can isay, i wouldnt argue with you if you call earth flat.
please join this society
Flat Earth Society - Wikipedia, the free encyclopedia

Sixteen new thermal powerplants? Three new dams? Right.

 

[ziaulislam]

Sixteen new thermal powerplants? Three new dams? Right.

i clearly said that thermal plants are not confirmed.
the only confirmed projects in thermal sector are two coal plants in bin qasim 660 each by private sector, 2000mw various project by asian bank and the 660 mw thar coal project funded via chinese commercial loans, sindh govt and engro.
rest thermal are only MoUs, we never know about them however going the huge profit margin of (ER OF 4yrs) it seems they will be built.
hydro worth 6000 +,NJ,tarblea extentions and dasu are confirmed. bhasha is unconfirmed
2 nuclear plant worth 1200mw each are also confirmed and work going on.
solar worth 100mw and wind worth 1500mw in private sector also confirmed and work going on.
the infrastructure projects can easily be handled via PSDP as it has been done in past.

pakistan spend 3-4 billion dollars in PSDP sector, energy usually gets around 1 billion dollars and infrastructure 1 billion dollars..thats how we funded NJ and nuclear plants in past..
so even if for some reason we dont increase PSDP even so expect 15-20 billion dollars investment by public PSDP
however most money will come via WB,asian bank(16-18 billion dollars) and chinese investment/loan(8-16billion dollars)

 

[Chak Bamu]

Much hope and hot air here. Little will be actually achieved.

Strong statement, that is. How could you know - Mr. Chief Pessimist?

 

[WAR-rior]

Strong statement, that is. How could you know - Mr. Chief Pessimist?

Not the pessimism but even I think the same. Simple reason,

Why shud anyone believe that this will be executed?

Reasons :
Involvement of China and complete permission by Pakistan to do any development China wants to do in Pak.
Pakistan saw that development during Musharraf too. So not a new phenomenon.
Devlopment is a natural process and if remaining, it will automatically fill its space if given even a little leverage.

So u see Pakistan has all the right reasons to develop and apply all the plans its establishment drafts. But again,

China needs a conducive development atmosphere. Does Pak have it now?
Musharraf executed coz he was the militaryman and terrorists only were new in the arena. Now they are well settled and current establishment isnt able to calm these terrorists down. Do we actually have a conducive business atmosphere there?
Just like in the rain an empty glass is obvious to be filled unless u dont put the lid. Similarly, development in Pakistan will be a natural phenomenon only if people sees its importance more than anything else. Are people ready to put growth n development above everything else?