China to invest $ 45.6b in energy and infrastructure development
Source : Pakistan Today Date : 12-11-2014
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China will invest $ 45.6 billion in energy and infrastructure development in Pakistan up to 2025. The projects to be undertaken will form part of the China-Pakistan Economic Corridor which will benefit not only entire Pakistan and China but also the neighboring regions.
Minister for Planning and Development Ahsan Iqbal stated this while briefing newsmen on Tuesday about agreements signed with China during recent visit of the prime minister to Beijing.
Giving details, the minister said that the accords signed include energy projects to produce 16,400 MW of electricity. In the first phase, projects with an aggregate capacity of 10,400 MW will be completed at a cost of 15.2 billion dollars.
In the second phase, projects of the capacity of 6,645 MW will be taken up. Projects in the second phase will also include energy-related projects of a Jetti in Gaddani, upgradation of existing transmission lines and installation of new transmission lines. The second phase projects will cost 18 billion dollars.
The minister said work on energy projects of the capacity of 10,400 MW would be initiated immediately. Projects with aggregate capacity of 9,000 MW will be completed by 2018 while hydel projects will be completed between 2020 and 2023.
Ahsan Iqbal said projects with a total capacity of 7,560 MW would be coal-based with a generation cost of 10 cents per unit enabling the government to reduce electricity prices. Projects with capacity of 1,600 MW would be hydel-based and these too would help produce electricity at reduced cost.
He said the energy projects also include 1,000 MW Quaid-e-Azam Solar Park which would be the largest solar park in the world.
The minister said the third segment of the China-Pakistan Economic Corridor was upgradation of Karakoram Highway and construction of Karachi-Lahore Motorway. The construction of 832 kilometer roads will cost 5.9 billion dollars.
He said as part of the Economic Corridor, 1,736 kilometer of railway track would also be upgraded and modernised. Ahsan Iqbal said the upgradation would increase speed of the train from the existing 80 to 140 kilometer per hour reducing time journey from Karachi to Peshawar by about 70 per cent.
He said the package also includes 650 million dollar investment in Gwadar port, airport and other infrastructure. A mass transit project for Lahore called Orange Line would also be initiated at a cost of 1.6 billion dollar.
China will also invest 44 million dollar for cross border optic fiber cable system improving and securing international connectivity. The minister rejected the impression being created by some vested interests that the projects under China-Pakistan Economic Corridor will benefit only Punjab and said the biggest beneficiary would be people of Thar where 10 energy projects of 6,600 MW would be established. Similarly, Suki Kenari energy project of 900 MW would be established in KPK and 725 MW project at Karote in AJK. There would also be 250 MW wind power projects in Sindh.