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CPEC moves towards new direction of development

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China will provide equipment for setting up solar photovoltaic power plant.​

GTN News​

01/08/2022




ISLAMABAD, Aug 1 (INP): Chinese companies Genco Solar and JA Solar have joined forces with another company to set up a Solar Photovoltaic Power Plant with a peak installed capacity of 1.931 MW of Photovoltaic Cells/Panels. And other related equipment will be provided. MWp) in Punjab, Gwadar Pro reported on Monday.

The National Electric Power Regulatory Authority (NEPRA) on July 29 approved G Solar Power (Pvt.) Limited (GSPPL) for its photovoltaic-based solar plant at Mauza Bahuman, Tehsil Pindi Bhatian, District Hafizabad, Punjab. Generation license granted. GSPPL will supply/sell power to Crescent Bahuman Limited (CBL) as Bulk Power Consumer (BPC).

According to Nepra documents, “The authority has observed that the company intends to install PV cells/panels from Tier-I manufacturers including Genco Solar, JA Solar (and) Renesola.”

Jinko Solar Holding Co., Ltd is one of the world’s largest solar panel manufacturers, headquartered in Shanghai, China. Similarly, JA Solar Holdings is another solar development company based in Shanghai. The feasibility study shows that the company will install a total of 3576 panels/modules of 540 WP.

According to official documents, GSPPL has confirmed that a deal has been closed with “Jinko Solar” for the purchase of JKM54OM-72HL4-V PV cells where the manufacturer has assured an average capacity factor of around 16.57%. Is”.
Nepra believes that GSPPLK The proposed installation of PV based power generation facility will result in maximum utilization of RE which is currently unutilized, resulting in pollution free electricity.

According to Nepra, solar energy is a local resource and such resources should be prioritized to ensure energy security. The country’s current energy mix is heavily skewed towards thermal power plants, which run primarily on imported fossil fuels.
The continued import of fossil fuels not only puts pressure on the country’s valuable foreign exchange reserves but is also a cause of environmental concern.

The Government of Pakistan plans to increase the share of RE to 30% by 2030 from the current level of 5% of installed capacity.

INP/Javed
 
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Pakistan, China join hands in weather observation​

August 28, 2022



According to the media report, a lidar station set up at the University of Peshawar can provide atmospheric clouds, aerosols, temperature, humidity and other data concerning the China-Pakistan Economic Corridor (CPEC) area, and facilitate research on climate change, pollution and sand storm. The station was put into use in Peshawar, Pakistan earlier this month for climate observation under a Belt and Road project jointly undertaken by Chinese and Pakistani universities. The Peshawar station is part of a lidar network that also includes eight stations in northwest China’s Gansu Province and Xinjiang Uygur Autonomous Region.

ISLAMABAD: A lidar station set up at the University of Peshawar can provide atmospheric clouds, aerosols, temperature, humidity and other data concerning the China-Pakistan Economic Corridor (CPEC) area, and facilitate research on climate change, pollution and sand storm.
The station was put into use in Peshawar, Pakistan earlier this month for climate observation under a Belt and Road project jointly undertaken by Chinese and Pakistani universities, according to People Daily.

Jointly built by the two universities, the station is the most advanced climate and environment observation station in Pakistan, according to Huang Zhongwei, a professor with the Lanzhou University based in northwest China Gansu province.

The Peshawar station is part of a lidar network that also includes eight stations in northwest China’s Gansu Province and Xinjiang Uygur Autonomous Region.

Combining the lidar network and weather satellites, scientists have built a regional comprehensive weather monitoring system, which will help them build a high-quality database, develop a weather disaster warning system and meet the needs in building new energy, transportation and other key infrastructure, according to Huang.

Preparation to build the station started as early as in 2018. Key equipment provided by Chinese side were sent to Pakistan last year. Engineers from the Lanzhou University visited the University of Peshawar from July 25 to August 6 this year to help install the equipment and train Pakistani engineers.

We provide the equipment while the University of Peshawar is responsible for the site selection, electricity supply and equipment maintenance. The two sides share the data in the Belt and Road lidar network, said Li Wuren, an engineer with Lanzhou University.

Khan Alam, associate professor at the department of physics with the University of Peshawar, said the high-tech instruments from China would help assess and mitigate air quality issues in Peshawar, and observe the impacts on human health as well as climate changes.
 
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It depends on what BRI is


With the Ukraine war the whole BRI concept is dead
On the contrary, BRI may not be dead, but considering need to find investment opportunities outside of China and the increasing efforts to geopolitically constraint China’s competitiveness globally, China will have to invest more of its own money and not give out as many loans to countries.

What is interesting in this circumstance is that they want to do more public-private partnerships, meaning rich local entrepreneurs. This may in fact lead to reforms in countries to ensure investments are more transparent and run like a business; needing to turn a profit. Hopefully this is where competent members of the local wealthy elite and diaspora communities can come in and use their economic capacity to reform the economies.

Yesterday two reporters from the Wall Street Journal put out a couple of videos outlining BRI 2.0

So don’t count China out. Btw, @ghazi52 which projects under these conditions should Pakistan prioritize. IMHO. finishing the motorway between Hyderabad and Sukkur seems to be easiest first choice as the video on Kenya pointed out for their motorway and how it was even the preferred shipping option over the standard gauge railway.

Speaking of the railway, Pakistan should probably look at building out all the logistical efficiency improvement parts of the planned upgrade of Mainline 1 (dry ports, signals upgrades) and only then move towards improving the tracks. Even then starting with the portions of the main line that are the most prone to failure or accidents, such as the Rohri-Sukkur area. To make the railways economically viable, they should be given land near the stations to build out bus terminals as well as hotels/apartment buildings as they do in Japan. Transit oriented town squares around which amenities for commuters, nearby residents and eventually tourists can be organized. All the rent that comes from these properties will help sustain the railways, this is the business model in Japan and helps to sound upgrades and regular maintenance in combination with ticket prices and freight profits.

 
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On the contrary, BRI may not be dead, but considering need to find investment opportunities outside of China and the increasing efforts to geopolitically constraint China’s competitiveness globally, China will have to invest more of its own money and not give out as many loans to countries.

What is interesting in this circumstance is that they want to do more public-private partnerships, meaning rich local entrepreneurs. This may in fact lead to reforms in countries to ensure investments are more transparent and run like a business; needing to turn a profit. Hopefully this is where competent members of the local wealthy elite and diaspora communities can come in and use their economic capacity to reform the economies.

Yesterday two reporters from the Wall Street Journal put out a couple of videos outlining BRI 2.0

So don’t count China out. Btw, @ghazi52 which projects under these conditions should Pakistan prioritize. IMHO. finishing the motorway between Hyderabad and Sukkur seems to be easiest first choice as the video on Kenya pointed out for their motorway and how it was even the preferred shipping option over the standard gauge railway.

Speaking of the railway, Pakistan should probably look at building out all the logistical efficiency improvement parts of the planned upgrade of Mainline 1 (dry ports, signals upgrades) and only then move towards improving the tracks. Even then starting with the portions of the main line that are the most prone to failure or accidents, such as the Rohri-Sukkur area. To make the railways economically viable, they should be given land near the stations to build out bus terminals as well as hotels/apartment buildings as they do in Japan. Transit oriented town squares around which amenities for commuters, nearby residents and eventually tourists can be organized. All the rent that comes from these properties will help sustain the railways, this is the business model in Japan and helps to sound upgrades and regular maintenance in combination with ticket prices and freight profits.


I remember all the hoopla about transporting goods through Russia to Europe. Do you want me dig up the posts on PDF ? It is safe to say the whole thing is dead in the short to intermediate time frame.

In USA freeways are used to ship stuff over railroads. there is no surprise here.

At the end of the day if the Russia, Iran, Pakistan of the world want to alter the status quo and not trade no one in the right mind will invest billions on projects in these countries for trading relating projects. Even China has to think hard on whether to rely on such countries and invest their money
 
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I remember all the hoopla about transporting goods through Russia to Europe. Do you want me dig up the posts on PDF ? It is safe to say the whole thing is dead in the short to intermediate time frame.

In USA freeways are used to ship stuff over railroads. there is no surprise here.

At the end of the day if the Russia, Iran, Pakistan of the world want to alter the status quo and not trade no one in the right mind will invest billions on projects in these countries for trading relating projects. Even China has to think hard on whether to rely on such countries and invest their money
Growing limitations on China will force them to consider other opportunities. Also, a lot of their expertise is in construction, and they have a lot of people they need to keep employed. Even if the profit margins are lower then they would hope, it’s a better deal then more domestic real estate. Transcontinental railways are still their specialty, so rebuilding the Pakistani rail network as well as trans-African and Trans-South American rail networks have the potential to have a market they can keep supplying for decades to come.

Outside of BRI and catching up technologically in key areas (like aerospace), what other options do they have to raise their trade opportunities?

P.s. the only change now will have to be that the recipient countries will have to get more savvy in these business deals. The only fair arrangement for both parties will have to be shared benefit and share loss; the Islamic way. Secondly, just like the story of the South Korean shipbuilding industry; building up capacity of shipbuilding has to be tied to signed contracts for products. Which in the case of South Korea was producing ships for the large Greek shipping companies. Third, there has to be real knowledge transfer so local labor can support the projects build and innovate with it. In this way, they will become ready to take up the next level joint venture with China when these countries are ready. This is mostly in management of labor and complex organizations like logistics. The goal being to become world class, so as to attract FDI from other countries besides China.
 
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Growing limitations on China will force them to consider other opportunities. Also, a lot of their expertise is in construction, and they have a lot of people they need to keep employed. Even if the profit margins are lower then they would hope, it’s a better deal then more domestic real estate. Transcontinental railways are still their specialty, so rebuilding the Pakistani rail network as well as trans-African and Trans-South American rail networks have the potential to have a market they can keep supplying for decades to come.

Outside of BRI and catching up technologically in key areas (like aerospace), what other options do they have to raise their trade opportunities?

P.s. the only change now will have to be that the recipient countries will have to get more savvy in these business deals. The only fair arrangement for both parties will have to be shared benefit and share loss; the Islamic way. Secondly, just like the story of the South Korean shipbuilding industry; building up capacity of shipbuilding has to be tied to signed contracts for products. Which in the case of South Korea was producing ships for the large Greek shipping companies. Third, there has to be real knowledge transfer so local labor can support the projects build and innovate with it. In this way, they will become ready to take up the next level joint venture with China when these countries are ready. This is mostly in management of labor and complex organizations like logistics. The goal being to become world class, so as to attract FDI from other countries besides China.

Isn't this completely wishful thinking ? you want them to construct things around the world to keep their labor occupied. that is okay. who pays for it ? money is not free even for the Chinese. For starters what does China have to show for the $60 billion in Pakistan ? American corporations invest in Bangalore a fraction of that money. Both India & USA have a lot to show and benefit from it.

BRI is motley collection of projects with key countries off limits - USA, Europe, India, Japan, Russia and even Iran are off limits for these kind of Chinese projects. China's interest in these projects is supply of raw materials for their large economy. It is beyond me how anyone else benefits except producers of natural resources.

China has a bad track record on soft skills. They have not been able to influence any country to change their political or business culture. I will admit American corporations have a mixed track record here but they are much better at this. It is not China's headache that Pakistanis cannot build world class enterprises. Pakistanis have to learn how to do it. If you have smart Pakistani businessmen then there is potential for the synergy.
 
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Isn't this completely wishful thinking ? you want them to construct things around the world to keep their labor occupied. that is okay. who pays for it ? money is not free even for the Chinese. For starters what does China have to show for the $60 billion in Pakistan ? American corporations invest in Bangalore a fraction of that money. Both India & USA have a lot to show and benefit from it.

BRI is motley collection of projects with key countries off limits - USA, Europe, India, Japan, Russia and even Iran are off limits for these kind of Chinese projects. China's interest in these projects is supply of raw materials for their large economy. It is beyond me how anyone else benefits except producers of natural resources.

China has a bad track record on soft skills. They have not been able to influence any country to change their political or business culture. I will admit American corporations have a mixed track record here but they are much better at this. It is not China's headache that Pakistanis cannot build world class enterprises. Pakistanis have to learn how to do it. If you have smart Pakistani businessmen then there is potential for the synergy.

In China, a key goal of the CCP is maximizing employment. They don’t expect to pay for all of it, but a mix of aid to stimulate growth (which should lead to demand for Chinese goods), public-private partnerships with local investors as well as encouraging local governments to run a more business oriented relationship.

So far, Chinese investment/loans vis a vi CPEC is not even half the purported $60 Billion. What does China have to show for it? Pakistan hasn’t defaulted, China is being paid back for the loans it extended Pakistan.

While I agree, how the projects/loans were managed/negotiated were the right way to do things, they did address long standing issues in Pakistan, like the electricity shortage. Supply and demand vis a vi the SEZ Should have been balanced to make the projects sustainable. The lead on building up Pakistani enterprises is obviously the responsibility of the Pakistani managers, negotiating comprehensive ToT is the best way to leapfrog some R&D. examples would be in agriculture and electronics manufacturing (especially solar panel manufacturing in Pakistan).

Strategically, the benefit to China would be to build up markets in peacetime and as an insurance policy should they face sanctions from the western bloc nations. Building up countries like Pakistan is about a mix of trade corridors and resource deals. A modern agricultural sector in Pakistan could export to China should their shipping be threatened. A corridor between Djibouti and Gwadar or Karachi could keep them connected with the bulk of Africa once rail corridors are secured and operational. If China decides to take Taiwan or do something else that gets them on the bad side of the western bloc, they want to have the capacity to not have to face the same level of isolation Russia is going through.

CCP regime survival depends on economic prosperity, and catching up technologically only gets them half way to that goal. China needs a plan to deleverage the debt it already has and find a way to grow out the position they are currently in. IMHO, BRI is becoming more essential then ever before, not less. If the US and Europe start competing for the attention of these smaller nations, that just means more leverage to the smaller countries and a higher premium, but the economics are still the same. So the sooner China builds up BRI the better off it will be.

Aid will also buy China soft power and goodwill in these countries if done with helping countries build up social services and good governance. A mix between the Marshall plans and the Peace Corp. think of the Soviet economic aid but on steroids. The economic interdependence could also help to bring peace agreements between national governments and rebel groups in parts of Africa, along trade corridors.

The political stability and economic opportunity will slow down the brain drain in these countries and potentially lead to the smart and capable businessmen/women returning home. Yes, I know this sounds like wishfullest of wishful thinking but lots of smallest investments done well can go a lot further in these countries badly in need of good governance and infrastructure.
 
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It's moving in a new direction of the debt trap. Learn something from Srilanka. CPEC has already destroyed our economy. How much do we have to pay back to china? China wants Pakistan to default. they will send a military ship to our port just like they did with Srilanka. Wake up. The primary purpose of Gwadar is to mak it a Chinese outpost. Chinese are very clever. They will make us beggars with nobody willing to give us a penny.
 
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In China, a key goal of the CCP is maximizing employment. They don’t expect to pay for all of it, but a mix of aid to stimulate growth (which should lead to demand for Chinese goods), public-private partnerships with local investors as well as encouraging local governments to run a more business oriented relationship.

So far, Chinese investment/loans vis a vi CPEC is not even half the purported $60 Billion. What does China have to show for it? Pakistan hasn’t defaulted, China is being paid back for the loans it extended Pakistan.

While I agree, how the projects/loans were managed/negotiated were the right way to do things, they did address long standing issues in Pakistan, like the electricity shortage. Supply and demand vis a vi the SEZ Should have been balanced to make the projects sustainable. The lead on building up Pakistani enterprises is obviously the responsibility of the Pakistani managers, negotiating comprehensive ToT is the best way to leapfrog some R&D. examples would be in agriculture and electronics manufacturing (especially solar panel manufacturing in Pakistan).

Strategically, the benefit to China would be to build up markets in peacetime and as an insurance policy should they face sanctions from the western bloc nations. Building up countries like Pakistan is about a mix of trade corridors and resource deals. A modern agricultural sector in Pakistan could export to China should their shipping be threatened. A corridor between Djibouti and Gwadar or Karachi could keep them connected with the bulk of Africa once rail corridors are secured and operational. If China decides to take Taiwan or do something else that gets them on the bad side of the western bloc, they want to have the capacity to not have to face the same level of isolation Russia is going through.

CCP regime survival depends on economic prosperity, and catching up technologically only gets them half way to that goal. China needs a plan to deleverage the debt it already has and find a way to grow out the position they are currently in. IMHO, BRI is becoming more essential then ever before, not less. If the US and Europe start competing for the attention of these smaller nations, that just means more leverage to the smaller countries and a higher premium, but the economics are still the same. So the sooner China builds up BRI the better off it will be.

Aid will also buy China soft power and goodwill in these countries if done with helping countries build up social services and good governance. A mix between the Marshall plans and the Peace Corp. think of the Soviet economic aid but on steroids. The economic interdependence could also help to bring peace agreements between national governments and rebel groups in parts of Africa, along trade corridors.

The political stability and economic opportunity will slow down the brain drain in these countries and potentially lead to the smart and capable businessmen/women returning home. Yes, I know this sounds like wishfullest of wishful thinking but lots of smallest investments done well can go a lot further in these countries badly in need of good governance and infrastructure.

If CCP regime survival depends on economic prosperity that would imply working relationships with major economic powers - USA, Europe, Japan, ASEAN, India, Australia.

A lot of your ideas do not make sense -- "A corridor between Djibouti and Gwadar or Karachi could keep them connected with the bulk of Africa once rail corridors are secured and operational."

If world class infrastructure led to economic development Saudi Arabia and UAE would be industrial powers. BRI is codeword for overpriced Chinese infrastructure projects and ensuring supply of raw materials for the Chinese economy. I may not seen anything beyond that. Look no further than Pakistan. For Pakistan they have barely started to pay back Chinese loans and already they are in deep trouble.
 
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The mainline train project was estimated to cost $10 billion by Pak Railways as posted on PDF recently. It will be interesting to know how much of this money will be funded by China and what would be Pakistan's business plan to return the borrowed money (for this project) back to Chinese lenders. Kenya's business plan clearly did not work for the Kenyan railway project that cost less than $400 million. So Pakistan's future implementation of this project would be interesting to look forward to :cheers:
 
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Pak-China welding school help locals lighten up future​

China Economic Net
Aug 9, 2023

Pak-China welding school help locals lighten up future


KARACHI - A Karachi-based "Welding School" under the Greater Karachi Water Supply Scheme - also known as K-IV - has trained several technical talents locally, helping the locals receive both training and jobs.

According to the school, it was jointly launched by Pakistan Water and Power Development Authority (WAPDA) and China Communications Construction Company Limited (CCCC) and each training session lasts for seven days. So far 124 students have received training, of which 61 students have graduated and all got successfully employed. “The employment rate has reached 100%,” source from CCCC noted.

K-IV is a vital project for Karachi, as it would help address the issue of water supply to the cosmopolitan city and economic hub of Pakistan. However, the city is facing a shortage of well-trained welders. To tackle this, the management of K-IV established a "Welding School" specifically for local employees. This school can not only solve the shortage of welders in the local market but also provide advanced technical support from China to local employees.

The "Welding School" is a technical training center led by professional Chinese welding masters, specifically providing practical training and technical guidance for local employees. This school is dedicated to helping the locals improve their welding skills.

After training, the project will greenlight outstanding trainees’ employment by allowing them to join the project or they can also choose to work for other companies.

Pakistani Federal Minister for Water Resources Syed Khursheed Ahmed Shah highlighted that the completion of the K-IV project will effectively alleviate the water shortage in Karachi, and so to improve people's lives and promote economic development in the region.

K-IV is the largest livelihood project in Pakistan to date, and upon completion, it will solve the water problem for over 20 million people in Karachi. The reporter learned that the project has been underway for one year and 39% construction has already been completed.
 
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Chinese companies to assist solving Pakistan’s waste crisis​

By Saira Iqbal
Sep 8, 2023

ISLAMABAD- Pakistan’s waste crisis is looming large, with approximately 48.5 million tons of solid waste generated annually, which is exacerbated by a yearly population growth of 2.4 percent and the rapid pace of urbanization. Pakistan grapples with inadequate waste management infrastructure.

“China has the most experience in waste management globally, and the vast economy of China is established because of proper management and recycling industry. China and Pakistan would work together on it,” said Shariq Vohra, President of Karachi Chamber of Commerce and Industry.

Adnan Hafeez, director of Imperial Ventures (Pvt) Ltd, recently came to Sichuan, China. Finding investors in the sanitation field was his main aim. ”Seeing advanced technologies in China made me notice that there are still many opportunities and large space for Pakistan to cooperate with Chinese enterprises in garbage transportation and treatment.” Sichuan Quanyi Environmental Equipment Company is one of the companies that are interested in investing in Pakistan.

There Adnan saw different kinds of garbage disposal vehicles. “I communicated with them about how to enter the Pakistani market. Aside from selling equipment and undertaking government projects, the company is also interested in investing in plants of equipment production in Pakistan.”

Sindh started to marketize sanitation projects in 2016, since when Imperial Ventures started to introduce Chinese companies to undertake sanitation projects in Pakistan. “At present, there are 10 sanitation projects in Sindh province, nine of which are undertaken by Chinese companies. Four
of them got the project through our introduction and assistance.”Hafeez added.

Adnan said, “We have invited interested Chinese companies to come to Pakistan. Further cooperation details will be discussed after the companies conduct inspections of the business environment and market in Pakistan. This could be a big breakthrough.”
 
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