Chinese Investment to Resolve Energy Crisis, Build Infrastructure in Pakistan

[VCheng]

Welcome to life. There are few certainties in it. Mostly probabilities based on certain actions leading to certain outcomes...

To be honest, if the government stays on this projected path per your graph above, it just might make a difference.

 

[C130]

building a power plant is one thing but managing it is another.
are the Chinese going to be running and managing the infrastructure they build??

 

[RiazHaq]

building a power plant is one thing but managing it is another.
are the Chinese going to be running and managing the infrastructure they build??

Pakistanis have been running all kinds of power plants (thermal, nuclear, hydro) successfully for decades. These plants will be owned and operated by Chinese Independent Power Producers (IPPs) but I'm certain the managers, engineers and workers will be mostly Pakistanis.

 

[Stephen Cohen]

@RiazHaq

All power investments require a lot of dollars

First for purchasing power equipment because Pakistan does not make any
Second for purchasing coal ; gas and oil
Third for repatriation of profits

Any investor in the power sector will closely look at whether he will be able to
convert his revenues in PKR to USD given the acute forex shortage in Pakistan

If Nandipur power project is anything to go by Chinese have given a
very expensive power plant to Pakistan which again is running on Furnace oil
adding to the circular debt

China has recently refused to accept sovereign Guarentees proposed by GOP
in Thar coal and instead demanded full and upfront investment by Pakistani
companies

 

[Viper0011.]

This investment will boost foreign confidence and bring more money in FDI.

@RiazHaq - Does this mean that Pakistan can score 5% GDP growth for the next five years?

Oil prices going down will save Pakistan $7 billion per year. How would that impact our economic growth?

This investment along with the current government who brought this investment, if remain at work, will literally change the face of Pakistan over the next three years. Additionally, as soon as the first few large projects come online in 2017-2018, you'll see a flood of additional investments in real estate and other areas. This is tremendous opportunity if Pakistan can use it to its advantage.

 

[Viper0011.]

@RiazHaq
Any investor in the power sector will closely look at whether he will be able to convert his revenues in PKR to USD given the acute forex shortage in Pakistan

If Nandipur power project is anything to go by Chinese have given a very expensive power plant to Pakistan which again is running on Furnace oil adding to the circular debt

China has recently refused to accept sovereign Guarentees proposed by GOP in Thar coal and instead demanded full and upfront investment by Pakistani companies

China and Pakistan will be trading in their own currencies in the near future. However, one of the purposes for this investment is to send dollars to Pakistan to bolster its forex in dollars. You obviously don't understand how Chinese do these investments and take the money back. Read up on it and you'll find out.

Nandipur project wasn't a failure from the Chinese end. They supplied everything on time. In order to salvage the project, comply with the contract put in place with the Chinese, the government of Pakistan decided to revive the project. The cost had already doubled but not doing anything would've wasted a lot of existing money and infrastructure. So they cleared the stuck machinery at the port and started to use it. However, some of the main turbine parts that had been rusted, broke down. No one really opens up an assembled turbine unless it fails. Turned out, the previous government had kept these parts in storage where there was a lot of water close by, and the moisture damaged many components. But when the new extension starts on this project, the Chinese were also going to change the turbines and install news ones. Once its up and running, it'll produce decent amount of energy. Low cost however, isn't there anymore due to PPP / previous government's corruption and faulty parts.

Do you have any proof on the Thar coal project where the Chinese rejected the GOP's guarantee? Just so you know, the Chinese didn't come to Pakistan on GOP's guarantee, they came because of the current government's policies and reforms. The Germans, the Americans and the Russians are ALSO planning on pouring large sum of $$ as soon as a few energy related projects go live and the shortage is maintained at a better level than today.

 

[Stephen Cohen]

@orangzaib

Power sector woes - Newspaper - DAWN.COM

 

[Stephen Cohen]

@orangzaib

Thar project: Chinese lenders refuse to accept sovereign guarantees – The Express Tribune

 

[Viper0011.]

@orangzaib

Thar project: Chinese lenders refuse to accept sovereign guarantees – The Express Tribune

You should pay more attention to recent events. This got taken care of by NS's visit. This happened due to political instability due to IK's drama. The Chinese started asking for risk sharing across the board but NS took care of it when he met with the Chinese premier. Oh and the express tribune ain't some' real IMO. If this was on a regional media outlet, I would've believed it more.

 

[WAJsal]

infrastructure work will always be appreciated tnks

 

[Danish saleem]

Remember Folks,

After Russia, China is reaching Hot water of Gulf via Gwader, and like in 70's USA, trying to stop China! beause USA knew reaching hot waters is very very crucial for Chinese economy.

 

[Realist_me]

Remember Folks,

After Russia, China is reaching Hot water of Gulf via Gwader, and like in 70's USA, trying to stop China! because USA knew reaching hot waters is very very crucial for Chinese economy.

Not only USA but also India. China's oil freight mostly goes through Indian ocean right now hence India can always block that route in case of any rift with China. Gwadar will give China an alternate shorter route for oil freight and will wipe out any risk of Indian blockade on Chinese cargo passing through Indian ocean. Its a win-win for both Pak and China and lose for India and USA.

 

[WAJsal]

Not only USA but also India. China's oil freight mostly goes through Indian ocean right now hence India can always block that route in case of any rift with China. Gwadar will give China an alternate shorter route for oil freight and will wipe out any risk of Indian blockade on Chinese cargo passing through Indian ocean. Its a win-win for both Pak and China and lose for India.

we acheive something greater than WIN WIN we become a pain in the *** for indians

 

[Danish saleem]

Not only USA but also India. China's oil freight mostly goes through Indian ocean right now hence India can always block that route in case of any rift with China. Gwadar will give China an alternate shorter route for oil freight and will wipe out any risk of Indian blockade on Chinese cargo passing through Indian ocean. Its a win-win for both Pak and China and lose for India and USA.

and this is the reason, and two sit ins running in Islamabad and Hong Kong.
Please check the timings of both sitings.

 

[WAJsal]

and this is the reason, and two sit ins running in Islamabad and Hong Kong.
Please check the timings of both sitings.

ur conspiracy is a joke truly dude for god sakes even PMLNs minister no longer call it a part of conspiracy and u know how much they hate IK stop insulting our army or ISI for god sakes