China reveals its cards for investing $20 billion in Pakistan

[Neo]

China reveals its cards for investing $20 billion in Pakistan
Hand over all projects without any bidding, asks Beijing; Islamabad ready, changes in laws being considered​

Khalid Mustafa
Monday, January 20, 2014

ISLAMABAD: China is demanding that all mega power projects, including the Bhasha Dam, Gaddani and Lakhra coal plants, the Tarbela Extension project and many transmission lines, be handed over to China without any international bidding process, and Beijing will directly invest $22 billion in Pakistan.

The Nawaz Sharif government is eager to accept this huge Chinese offe, and a loophole in the PPRA rules is being used to hand over all these mega projects to China.

"Beijing will extend the preferential and medium term soft loans of $22 billion to Pakistan against the guarantees of the government of Pakistan", a senior official who was part of the recent meeting of the Pak-China Joint Working Group (JWG) held on January 7-8 in Beijing told The News.

"We have carved out a plan to capitalise on the opportunity that Beijing has extended to Pakistan. Under the plan, Chinese companies will be offered the coal and hydropower and huge transmission line projects under a direct contracting regime which is not against the PPRA rules," the official said.

The Ministry of Water and Power has already sent a summary to the Law Division for vetting. The vetted summary allowing the mechanism ofadoptingthe direct contracting regime will then be sent to the Ministry of Finance for a final nod. In case of no objection, the projects will be given to the Chinese companies.

The Chinese companies have, the official said, refused to take part in international competitive bidding (ICB) to get the contracts in Pakistan's power sector arguing if Pakistan wants funding from Beijing for various projects, then it will also have to hand over the projects.

Top officials in the power ministry have found a way out of introducing a direct contracting regime, which is permissible in the PPRA rules, to accommodate the desire of Chinese companies.

In the Joint Working Group meeting held in Beijing an 18-member Pakistan delegation took part. The meeting was co-chaired by Wu Xinxiong, of the Energy Administration (NEA) of China and Khawaja Muhammad Asif, Federal Minister for Water and Power.

Beijing offered the huge credit line based on insurance to promote and sustain the development of Chinese energy projects in Pakistan.

During the recent visit to China, the Three Gorges Corporation extended an offer for 100 percent funding for Pakistan's most strategic project, the Diamer-Bhasha Dam, worth $11.8 billion that will have a capacity to store 8 million acre feet of water and generate 4,500 MW of electricity. The Chinese company said it will provide the whole funding but the project should be handed over to it without holding any International Competitive Bidding (ICB).

The said company showed its willingness to immediately release $5 billion to Pakistan for the Diamer-Bhasha Dam so that it could start constructing the dam.China has also offered to install the coal power project of 660 MW in Gaddani and 2x600 MW coal based projects in Thar and 2x600 MW coal based project in Lakhra.

Pakistan needs almost $16 billion investment to develop the Power Park of 600 MW in Gaddani with jetting and a transmission line. China has also offered to provide $4 billion for evacuation of 6,600 MW through the transmission line, but it demanded the handing over of the project of transmission lines.

China also offered $700 million for the Tarbela extension V project which if completed will provide 1,400 MW electricity at cheaper rates. The Tarbela Extension IV project of 1,400 MW is already under way and will be completed by 2017.

Source: http://www.thenews.com.pk/Todays-News-13-28050-China-reveals-its-cards-for-investing-$20-billion-in-Pakistan

 

[venkat]

what a deal it would be!!! pakistan quietly will become another china in a decade !!!! Even if Modi comes to power he will be ostracized by OIC and other muslim countries.ISI will stage manage attacks on minorities and will put blame on modi...jihadis will have a merry go around with IEDeology!!! God save my country!!! AAP is another shaap(means curse)!!!! Every defence deal is being scuttled. after all that MMRCA fiasco govt says no money to sign deal with France!!!

 

[jmj_overlord]

what a deal it would be!!! pakistan quietly will become another china in a decade !!!! Even if Modi comes to power he will be ostracized by OIC and other muslim countries.ISI will stage manage attacks on minorities and will put blame on modi...jihadis will have a merry go around with IEDeology!!! God save my country!!! AAP is another shaap(means curse)!!!! Every defence deal is being scuttled. after all that MMRCA fiasco govt says no money to sign deal with France!!!

at the present rate chinese will control the whole country in the future by making more and more investments..........

 

[Neo]

at the present rate chinese will control the whole country in the future by making more and more investments..........

You won't see Pakitanis complaining. Finally something positive is happening and even the comon man will benefit more from Chinese investets as it will include a lot of infrastructure projects creating hundreds of thousands jobs.

 

[Srinivas_K]

You won't see Pakitanis complaining. Finally something positive is happening and even the comon man will benefit more from Chinese investets as it will include a lot of infrastructure projects creating hundreds of thousands jobs.

These are only proposals, 20 Billion over a period of 4 or 5 years means on an average 4 Billion per year. That too in power sector.

You people are getting more than that from USA as Aid.

 

[Blackwater]

You won't see Pakitanis complaining. Finally something positive is happening and even the comon man will benefit more from Chinese investets as it will include a lot of infrastructure projects creating hundreds of thousands jobs.

pakistan is doing same mistake as she did in american times 50-60-70-80ties


dont lay on Chinese bed. i mean dont allow Chinese to take over ur country

 

[jmj_overlord]

ever thought of what the chinese will ever want in return ? those guys are not freely giving away their money........

 

[t_co]

These are only proposals, 20 Billion over a period of 4 or 5 years means on an average 4 Billion per year. That too in power sector.

You people are getting more than that from USA as Aid.

Except US Aid goes straight to US defense corporations and Pakistani politicians. There is very little job creation associated with US military aid, as Egypt, Afghanistan, et al can attest to.

 

[t_co]

ever thought of what the chinese will ever want in return ? those guys are not freely giving away their money........

For Pakistan not to be a basketcase? China would rather see a stable, prosperous Pakistan above all else. From China's point of view, that would alleviate both an antagonistic India and restive Uighurs.

 

[Ray]

Pakistan's economy is in dire straits and its political environment is not stable, given that the fundamentalists are having a heyday and many Pakistanis being killed in the bargain.

A viable economy alone can help Pakistan to get its house in order.

It is in China's interest too since a poor economy and a job scarcity is only encouraging the increase in the gaggle of fundamentalists, and some of them are spilling over to what the fundamentalists called East Turkmenistan and causing nightmares to China; the last indicating a graduation from knives to explosives!

Therefore, China's investment is in the right direction, but it is too paltry to make a serious difference as yet.

China must be more magnanimous and invested larger sums and raise Pakistan from the misery that they are facing. especially from jobless fundamentalists, who find employment in these horror organisations that plague not only Pakistan, but also abroad.

More cash inflow from China is the answer.

 

[mattster]

For Pakistan not to be a basketcase? China would rather see a stable, prosperous Pakistan above all else. From China's point of view, that would alleviate both an antagonistic India and restive Uighurs.

T_co - tell your Chinese brothers who are going over to Pakistan to run these projects to get a very good life-insurance policy.
I can say one thing - you have to be a really dumb Chinese engineer to accept an offer to work in Pakiland.....no matter how much they pay you !

 

[amoy]

the lion's share is in Pakistan's infra and power sectors incl. nuclear plants. most ground work will be done by Pakistanis of course hence massive job creattion, except for a number of Chinese technicians.

what can b a more effective way of investing other than letting huge amount of foreign reserves rot in low yielding and risky US T-bonds? this progress in PAK is just part of Chinese global ventures in buying in overseas assets or acquisition etc. .

more than stability of PAK the whole region is in need of peace and development. Afghanistan - Xi met Karzai in Sochi the other day and pledged more post 2014 support. Freedom of navigation through Indian Ocean - it's worth of far more than 20bil !

Sent from my 5910 using Tapatalk 2

 

[anoop_mig25]

You won't see Pakitanis complaining. Finally something positive is happening and even the comon man will benefit more from Chinese investets as it will include a lot of infrastructure projects creating hundreds of thousands jobs.

Thousnads of jobs right

But for whom local pakistanis or foregin chinese

U must have heard news in print or electronic that in africa chinese companies brought chinese locals to carry out job .locals didnt benefit.

 

[arnabmit]

ever thought of what the chinese will ever want in return ? those guys are not freely giving away their money........

Chinese policy has always been to fight India till the last Pakistani. That's what they will want.

And oh yes, road/rail access to Afghanistan via POK and oil via Gwadar.

 

[tramp]

The Chinese are not Americans. They do not rush in and out like the Americans. They plan long-term and stay long squeezing out the last drop. Remember the famous Zardari-Gilani visits to Beijing seeking strings-free aid to shore up Pakistani economy and returning empty handed?

Chinese infra investments will be made only with PLA on tow for protection because they will not trust Taliban-infected Pak army. And the PLA will garrison entire industrial townships.

Will the US with its own brand of counter intelligence operations countenance that?

 

[Neo]

These are only proposals, 20 Billion over a period of 4 or 5 years means on an average 4 Billion per year. That too in power sector.

You people are getting more than that from USA as Aid.

Work has already started on two $9,5 billion Karachi nuclear reactors and first of six 660MW Thar coal power stations. Chashma 3 and 4 will be completed in next 18 months. Khushab heavy water complex is building reactor 4 and 5 with Chinese assistance. Stabalising energy sector is our first priority but there is a lot mlre to come.

USaid is merely 1,5 billion a year and expexted to decrease post 2014.

 

[Neo]

pakistan is doing same mistake as she did in american times 50-60-70-80ties


dont lay on Chinese bed. i mean dont allow Chinese to take over ur country

Different times and different games. China has been a good neighbor, friend and an ally for more than 50 years and has never meddled in with our internal affairs nor pushed us to follow her foreign policies. Pakistan needs China as a front line ally more than we needed USA in 1953
and a lot more to offer to her than USA.

Ever appeared to you why Russia and China are so keen to include Pakistan in SCO?

 

[amoy]

Work has already started on two $9,5 billion Karachi nuclear reactors and first of six 660MW Thar coal power stations. Chashma 3 and 4 will be completed in next 18 months. Khushab heavy water complex is building reactor 4 and 5 with Chinese assistance. Stabalising energy sector is our first priority but there is a lot mlre to come.

USaid is merely 1,5 billion a year and expexted to decrease post 2014.

unlike Chinese investment heavily in infra isn't most of US aid in the end flowing back to American Military Industrial Complex? can ordinary Pakistanis eat it or feel it or get employed? Chinese way (not aid)is more sustainable and benefiting commoners in the long run.

Sent from my 5910 using Tapatalk 2

 

[Neo]

ever thought of what the chinese will ever want in return ? those guys are not freely giving away their money........

Pakistani think tank realises that under current circumstances a 20 year lease of a naval base to China in Gwadar is in national interests. Not only will it keep away US and India breaking Balochistan, it will open doors to billions of dollars in trade, investment and building of infrastructure.

 

[bose]

Pakistani think tank realises that under current circumstances a 20 year lease of a naval base to China in Gwadar is in national interests. Not only will it keep away US and India breaking Balochistan, it will open doors to billions of dollars in trade, investment and building of infrastructure.

Is it not an irony that same Pakistan found it essential to base USA U2 planes during cold war time for its percieved interest and now it the need to sell oneself to China...