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Pakistan, China to sign 69 accords of over $46 bn


Source : The News   Date : 18-04-2015   

Pakistan, China to sign 69 accords of over $46 bn

ISLAMABAD: Pakistan and China are going to sign around 69 deliverable projects of different stages having an estimated cost of over $46 billion for energy, infrastructure, Gwadar development and telecom cooperation during the upcoming visit of Chinese President Xi Jinping to Islamabad.

Prior to the Chinese president’s arrival in Islamabad, JinQi, head of board of directors, Silk Road Infrastructure Investment Fund, having a portfolio of $40 billion, will also reach Pakistan to find ways and means to provide finances for the much-hyped Pak-China Economic Corridor (CPEC), a top official of the government told ‘The News’ in a background interview here on Friday. The head of China Development Bank will also arrive in Islamabad to sign financing deals under the CPEC initiatives.

Regarding different stages of around 69 projects under the CPEC, there will be five projects where ground breaking ceremonies will be performed, eight projects where inauguration will be done and for the remaining 56 projects, agreements will be signed during the Chinese president’s visit to Pakistan, scheduled to start from the coming Monday.

The total portfolio under CPEC might cross $50 billion mark because some new projects would be inserted into it and one such example was the development of infrastructure for the imported LNG. China has agreed to make the LNG infrastructure a part of CPEC and work on finding out the exact cost was underway.

Minister for Planning and Development AhsanIqbal said that Pakistan and China would accord formal framework during the upcoming visit of Chinese president under the CPEC for 2014 to 2030 by incorporating projects of short term, medium term and long term basis. “Instead of creating suspicion, Pakistanis should be thankful to China for making huge investments in our country,” the minister said while addressing a conference titled China’s Development Experience and Pak-China Economic Corridor (CPEC) here at the P-Block Auditorium on Friday.

The minister said that Pakistan would double its energy generation capacity over the next 10 years as with the Chinese help the government would develop 10 projects at Thar to generate 610MW from each and Gwadar Port would be developed in accordance with international standards.

He also said that the CPEC intended to ensure connectivity of three billion people by bridging between South Asia and Central Asia and Pakistan would become a centre of economic activities.

In return, the minister said, Beijing also expected that Islamabad would help integrate industrial and economic activities of the western China with regional countries and globally.

China, he said, would invest $35 to $37 billion for energy projects in the Independent Power Producers (IPPs) mode where investors would produce electricity and the government would buy the produced power. “China will not provide loans for the energy sector but they will invest here in Pakistan,” he added.

The remaining portfolio of total committed amount of $46 billion will be provided loans on concession, he said and added that infrastructure projects would be executed through bankable feasibilities.

“China will provide concessionary loans for infrastructure projects,” he said and added that these loans would be paid back during the next 15 to 20 years’ period.Pakistan, the minister said, would have to match its efforts with the Chinese side or Beijing also possessed some alternative routes to develop its western part.

“We will have to ensure political stability and continuity of policies in Pakistan in order to match with the Chinese efforts in order to make CPEC a success,” he made it clear and warned that if this opportunity was missed out, China would start considering alternative routes for developing its western part.