Three CPEC projects hit snags as China mulls new financing rules

[Ryuzaki]

ISLAMABAD: China has temporarily stopped funding of some projects particularly those related to the road network under the China-Pakistan Economic Corridor (CPEC) till further decision regarding ‘new guidelines’ to be issued from Beijing, a senior government official told Dawn on Monday.

The decision could affect over Rs1 trillion road projects of the National Highway Authority (NHA). It was not clear how wide the impact of the delay will be, but initial reports confirm that at least three road projects are going to experience a delay.

The projects to be affected include the 210-km Dera Ismail Khan-Zhob Road, at an estimated cost of Rs81 billion. Of this, Rs66bn will be spent on construction of road and Rs15bn on land acquisition. Also the Rs19.76bn 110-km Khuzdar-Basima Road has also been affected.

The Rs8.5bn 136-km remaining portion of Karakarom Highway (KKH) from Raikot to Thakot is also impacted.

All three projects were originally part of the government’s own development programme, but in December 2016, the spokesman of the NHA announced that they are to be included under the CPEC umbrella to become eligible for concessionary finance from China.

The official told Dawn that funds for the three road projects were approved in the 6th JCC meeting held last year, pending necessary procedural formalities. It was expected that the funding of the three projects would be finalized during the Joint Working Group (JWG) meeting held on Nov 20, but Pakistan was informed in the meeting that ‘new guidelines’ will be issued from Beijing under which new modus operandi for release of the funds will be described.

The decision of Chinese government was conveyed to Pakistan in the JWG meeting and the existing procedure for release of funds had been abolished. Under the previous procedure, the projects were to be approved by six different forums after which the funds were released.

“In fact the Chinese authorities informed us that the previous procedure of release of funds was meant for early harvest projects only and new guidelines will be issued for future projects of the CPEC,” the official said.

This suggests that the impact of the new procedures could be much wider than just the three roads mentioned by the official.

The official said the Pakistani side was left “stunned” when told of this development since it was the first time they were hearing it.

He, however, claimed that Chinese side was quite disturbed with increasing news reports being published in Pakistan regarding corruption in CPEC projects and that was the reason China has temporarily halted release of funds for the corridor.

https://www.dawn.com/news/1374532/three-cpec-projects-hit-snags-as-china-mulls-new-financing-rules

 

[Samlee]

DAWN News nuff Said

 

[Samlee]

Oh Oh they want to charge additional billions more for projects that cost 1/10th less. Similar to that Dam project where they were charging Pakistan couple of billions for a few hundred million dollar project. Pakistan got lucky and told them no.


They did not create the news, they simply reported what was told to them by your own government. Should you not as a citizen be curious being a Pakistani first?

DAWN Has Been Running An Anti CPEC Campaign Since This Projects Started,Their Credibility Took A Massive Hit Since The So Called "DAWN Leaks" Scandal

 

[Canuck786]

This is a serious investment that Chinese are making in Pakistan's infrastructure but all they hear is the political bashing on a daily basis by few old faces from Musharraf's era as well the media keeps barking 24/7 second guessing every move by the current administration perhaps after accepting favors from SOMEONE very special.

All this would cause any investor to take a moment and rethink the plan to see if they are committing a mistake. Please remember your personal agenda should never take precedence over national interests.

I am afraid that's what is happening though in Pakistan and that's a shame.

 

[Indus Pakistan]

Bad, bad, bad news. My concern all along about the CPEC was how would the massive interaction between Chinese and Pakistanis go. Although Pak/China relationship is old but it always has been limited to top tier limited number of officials. With CPEC came the mass contact on the ground. My concern was as mass contact takes place the Chinese might have second thoughts after they see the degree to which Pakistan has become hostage to religious radicals as seen in the recent Faizabad incident. This would have sent shivers in Beijing. It would raise the question that what is the $65 billion being invested in? A radical religious hell hole. Not exactly credentials for a investor, business friendly environment.

Quote

CPEC. And that has China behind it. Does the ruling elite want to see a day where CPEC collides with the Mullahs?

https://defence.pk/pdf/threads/pand...g-and-faizabad-incident.531632/#post-10061858

 

[Canuck786]

LOL if the Canadain govt wrote a secretive deal similar to CPEC, at the rates of interest (no one really knows), at exorbitant loan sharking terms, you would refuse to let your tax dollars just go to it without thorough investigation and answer.

Yet when it comes to your motherland, you are pro-China over Pro Pakistan citizenry. Not your tax money yeah.

Au contraire, I am Pro China because I am Pro Pakistan in a big way. And yes I am speaking on behalf of my Tax money.

Please stop this false propaganda about some secretive CPEC terms. Pakistanis have been informed of those terms at many forums. Others should not bother because it is none of their business anyway.

 

[Enigma_]

A lot of 'could' and 'maybes' from Dawn. Reading into the issue a bit too much perhaps? Will wait for further reports before commenting on this.

 

[ziaulislam]

LOL if the Canadain govt wrote a secretive deal similar to CPEC, at the rates of interest (no one really knows), at exorbitant loan sharking terms, you would refuse to let your tax dollars just go to it without thorough investigation and answer.

Yet when it comes to your motherland, you are pro-China over Pro Pakistan citizenry. Not your tax money yeah.

can you show me a single deal that is secretive?

everything is open and goes through regulatory bodies like Nepra

if you cant than you need to apologise for trolling

 

[Samlee]

A leak is not anti-CPEC- it is shining sunlight on what has been known to be a secretive deal and process. Try not be more Chinese than the Chinese. Find out if this news is true. This is your country, your taxpayer monies.

Did you not read how China tried to fleece Pakistan on the Dam project, where Pakistan got out of the specific CPEC deal? $4 Billion, that's what China tried to bill you for $400 million dollar project. Holy loan sharking s__

No.1 Just B'Coz It Is Called "Dawn Leaks" Does Not Make It So.The Name Is Extremely Misleading.It Was Falsely Fed Information Which Was Reported By Cyril Almedia Without Any Cross Checking Or Verification.Secondly That News Story Was Not About CPEC At All It Was About A Joint Counter Terror Meeting That Should Have Remained In-Camera.

Secondly Pakistan Did Not "Get Out".We Found The Terms Against Our Interests We Said No Simple.It Shuts Up Those Indians That Choose To Believe That Pakistan Has Shortchanged Or Sold Itself To China

No- they have not. https://herald.dawn.com/news/1153597
https://www.aninews.in/news/world/a...d-cpec-plan-with-provinces201711161432500001/

Again You're Quoting DAWN and An Indian Outlet

 

[Canuck786]

No- they have not. https://herald.dawn.com/news/1153597
https://www.aninews.in/news/world/a...d-cpec-plan-with-provinces201711161432500001/

Your posted a news from January 2017. The following is from December of 2016

http://dunyanews.tv/en/Pakistan/363879-Two-percent-interest-to-be-paid-on-CPEC-loans-Ahs

The following was posted on pdf few months back

https://defence.pk/pdf/threads/cpec-financing-is-pakistan-being-ripped-off-by-china.507705/

The writing is on the wall you just choose to ignore it. Good on you!

 

[ziaulislam]

see links above

you wasted time
list me a single project not some fan made science fiction
name a project e.g "this road" or "that power plant"
again i am waiitng...

dont quote me if you dont have a clear objective answer
i am asking to show me a single project where procedures were not follwoed

 

[Canuck786]

You may not like a source that sheds light, no my problem.

secondly, Pakistan simply said NO to what? See how you conveniently ignore the 800lb gorilla in the room. That gorilla is that China was charging multiple billions to do a project they knew could be done in 400 million or less. Higher than mountain friend was fleecing you and you chose to sidestep that YUgeeee issue in your reply

If that happened in the U.S for example and it came to light that China was caught overcharging on one line item in one part of the CPEC deal. People would demand an audit of it all asap.

I think you are either very dumb to read the news and apprehend its contents or very cunning to always twist the meaning to make it opposite.

Pakistan is developing and no one will be able to stop it now with Allah's blessings.

 

[Samlee]

You may not like a source that sheds light, no my problem.

secondly, Pakistan simply said NO to what? See how you conveniently ignore the 800lb gorilla in the room. That gorilla is that China was charging multiple billions to do a project they knew could be done in 400 million or less. Higher than mountain friend was fleecing you and you chose to sidestep that YUgeeee issue in your reply

If that happened in the U.S for example and it came to light that China was caught overcharging on one line item in one part of the CPEC deal. People would demand an audit of it all asap.

I Will Reject A Source They Falsely Feeds Info And Presents It As News.

Yes Pakistan Thought That Terms Are Not In Our Favour We Rejected It.Countries Take Decisions In Their Interest What's Your Point?????

 

[Canuck786]

How hell this becomes about me when your country is getting fleeced! There is a clear and indisputable proof of fleecing in the case of the Dam project.
So back to square one. You don't care because it is not your taxpayer money. And you are too emotionally vested in China.

400 million dollars to build what is a multi billion dollar damn? Pakistan government is allocating 30 billion rupees each for 9 years that is 3 billion dollars to build the equity to be able to then seek a loan for what is a 15 billion dollar project. For you to call it 400 million dollars is quite dumb IMHO.

https://tribune.com.pk/story/1558475/2-pakistan-stops-bid-include-diamer-bhasha-dam-cpec/

 

[PDFChamp]

Nonsense. Just ignore.

Pakistan and China are taking this initiative to next level. CPEC like rest of BRI is a win-win project to improve every country's economy in its path. If BRI succeeds, people will see the benefit of friendship with China and not ally with US against her.

Pakistan needs to stop taking loans from Western institutions (such as World Bank and IMF) because they are form of warfare by financial means. Here is an excellent article by a West Point graduate.