Pakistan stops bid on Diamer-Bhasha Dam. Beijing placed strict conditions including ownership of the

[That Guy]

This is a most encouraging development. It means that Pakistani decision-makers have not been swept off their feet by Chinese broad-brush approaches, and that they still carefully apply their minds before coming to any decision. In this mesalliance, only such constant vigil will preserve the smaller partner.

Well done.

This has been the case from the beginning. Pakistan isn't just giving the contracts to China without at least trying to get a fair deal, and anything considered to be of vital importance, Pakistan has put its foot down and stood firm.

This isn't new.

 

[Joe Shearer]

Actually It Is Only Indian Perception That Pakistan Is Giving Everything Away To China.When It Came To Protecting It's Interests Pakistan Placed Anti Dumping Duties on Chinese Steel and Tiles.

Interesting information.

This has been the case from the beginning. Pakistan isn't just giving the contracts to China without at least trying to get a fair deal, and anything considered to be of vital importance, Pakistan has put its foot down and stood firm.

This isn't new.

I was unaware of it, and am appreciative of the integrity on display.

 

[Kabira]

This project is huge risk for China to finance alone, I'm not surprised they are putting conditions. Will need $14b (likely $20b by the time its build) over 10 years. If Pakistan sacrifice some resources now to build Bhasha then future generations will be thankful. There is no option but to build it along with other water storage dams.

Most CPEC projects cost few $ billion and start generating revenues in 3-4 years. In Bhasha case cost will be closer to $20 billion and will need at least 12 years in best case scenario to be build.

 

[Dash]

This has been the case from the beginning. Pakistan isn't just giving the contracts to China without at least trying to get a fair deal, and anything considered to be of vital importance, Pakistan has put its foot down and stood firm.

This isn't new.

A further light on some of the incidents will be very appreciated.

Thanks.

 

[Solomon2]

...He said the Chinese conditions were about taking ownership of the project, operation and maintenance cost and securitisation of the Diamer-Bhasha project by pledging another operational dam.

Ownership, host country pays operations, project secured against existing income source - who wouldn't want to build the dam under such circumstances, it's practically risk-free!

Good capitalists would securitise such a project's financing with government- or institution-backed bonds as partial backing to their investment, representatives overseeing (or at least visiting) the management, and written assurances of fee remittances upon completion from operation. But no, the Chinese gov't wants everything risk-free. Two thumbs down.

 

[Syed1.]

This project is huge risk for China to finance alone, I'm not surprised they are putting conditions. Will need $14b (likely $20b by the time its build) over 10 years. If Pakistan sacrifice some resources now to build Bhasha then future generations will be thankful. There is no option but to build it along with other water storage dams.

Most CPEC projects cost few $ billion and start generating revenues in 3-4 years. In Bhasha case cost will be closer to $20 billion and will need at least 12 years in best case scenario to be build.

We can use some of the billions that the person you worship (nausabillah) has stolen

 

[Kabira]

We can use some of the billions that the person you worship (nausabillah) has stolen

How is your father Altaf Hussain doing now days?

 

[WhyCry]

Actually It Is Only Indian Perception That Pakistan Is Giving Everything Away To China.When It Came To Protecting It's Interests Pakistan Placed Anti Dumping Duties on Chinese Steel and Tiles.

This has been the case from the beginning. Pakistan isn't just giving the contracts to China without at least trying to get a fair deal, and anything considered to be of vital importance, Pakistan has put its foot down and stood firm.

This isn't new.

This has changed after the Nawaz's overthrow. Earlier pakistan was discussing a FTA with china.

Since #Gamechanger has worn down on the people and #Accountability is focus from 'Establishment'. Therefore, some saner decisions. The real problem is the current deficits repayment of loans. On top of this they are taking on this big project on their own.

This time around chinease made a good offer. This would be a strategic alliance if they owned the project. Higher money is due to the fact that there are higher losses in transmission and collections. Some people just don't pay and they get state support for relief like the case with K-electric.

 

[Mrc]

Pakistan can easily finance this... there are more than 10 billion USD in Pakistan developement fund this year alone from federation... on top of 10 billion from province's.... there is actually no need for federal pdf... it's all used for bribes

 

[Max]

Pakistan can easily finance this... there are more than 10 billion USD in Pakistan developement fund this year alone from federation... on top of 10 billion from province's.... there is actually no need for federal pdf... it's all used for bribes

its 10 years project, we can easily manage it from own resources if govt wills it. Just 1.4 billion a year.

 

[Chinese-Dragon]

Most CPEC projects cost few $ billion and start generating revenues in 3-4 years. In Bhasha case cost will be closer to $20 billion and will need at least 12 years in best case scenario to be build.

This is the case with such large scale projects like major dams.

It would take decades to see any return on investment (including the decade it would take to build). Which is a hard sell for almost any company.

That's $14 billion which you won't see again for 20+ years. What company wants those terms? Imagine a company telling their shareholders to wait several decades to see even a small return?

Even the Three Gorges Dam was expected to take over a decade to recover costs, after it had already been built and begun full operation. That's not counting the time it took to build it.

 

[RealNapster]

its 10 years project, we can easily manage it from own resources if govt wills it. Just 1.4 billion a year.

5 billion deduction from each province share plus 25 b from federal plus 5 b from wapda each year. Make it 50. Without much hurdles. Everyone is going to us water, so everyone should pay too.

But then, political will kahan hy.

This is the case with such large scale projects like major dams.

It would take decades to see any return on investment (including the decade it would take to build). Which is a hard sell for almost any company.

That's $14 billion which you won't see again for 20+ years. What company wants those terms? Even the Three Gorges Dam was expected to take over a decade to recover costs, after it had already been built and begun full operation. That's not counting the time it took to build it.

Still we can built many dams costing 2-4 b dollars each under cpec. And so is mentioned in Op. 2 hydropower projects are included.

 

[Shah Khalid]

Interesting information.



I was unaware of it, and am appreciative of the integrity on display.

This Is Because We Negotiate Like Professional Diplomats Behind Closed Doors And Don't Make A Media Circus Out Of It

 

[Affan-khan]

Keep that Neelum Jhelum cut in electricity bills and use it for Diamer bhasha

 

[Dalit]

Actually it is a very good decision IF it is made in the favor of Pakistani interests.

The good thing about China is that they make decisions putting their self interests first BUT they don't force Pakistan and let Pakistani administration take decision if it suits Pakistani interests, unfortunately this is not the case with US, World Bank, EU, IMF, fundings. All their fundings come with restrictions and conditions.

I can't disagree here. I hope that this decision was taken in the interest of Pakistan, but we need to renegotiate the terms with preferably a Chinese investor. China is the best investor for Pakistan under the current circumstances.

Ownership, host country pays operations, project secured against existing income source - who wouldn't want to build the dam under such circumstances, it's practically risk-free!

Good capitalists would securitise such a project's financing with government- or institution-backed bonds as partial backing to their investment, representatives overseeing (or at least visiting) the management, and written assurances of fee remittances upon completion from operation. But no, the Chinese gov't wants everything risk-free. Two thumbs down.

Any investor would want a risk-free investment which in turn would guarantee maximum return. Don't make it sound like as if this is something extraordinary. The Chinese have every right to be cautious. Just like we have the right to renegotiate or pull out of deals we may deem unsatisfactory.