China reveals its cards for investing $20 billion in Pakistan

[anoop_mig25]

locals in large numbers are working on the KKH, bulding of dams and roads. Only technical amd some security staff has been hired from China.

provide links netural one

 

[ladder]

provide links netural one

He won't, I have already asked him. And he provided none.

 

[Neo]

With string of big-money projects, China deepens ties with Pakistan

Mainland firms working on more than 100 major initiatives in energy, roads and technology as South Asian nation tries to right its economy
With string of big-money projects, China deepens ties with Pakistan

PUBLISHED : Monday, 09 December, 2013

Pakistan's recent launch of work on its largest nuclear power plant is the latest example of big-money Chinese infrastructure projects in the troubled nation.

Pakistan, plagued by a homegrown Taliban insurgency, is battling to get its economy back on track and solve a chronic energy crisis that cripples industry.

Politicians in Beijing and Islamabad are fond of extolling the profundity of their friendship in flowery rhetoric and on the ground this has translated into around 10,000 Chinese engineers and workers flocking to Pakistan.

Chinese companies are working on more than 100 major projects in energy, roads and technology, according to Pakistani officials, with an estimated US$18 billion expected to be invested in the coming years.

"Some projects are being done by the government, then most of the projects are being done by the Chinese companies, by the provinces and also with the state enterprises and authorities," said Ahsan Iqbal, Pakistan's federal minister for planning and development. "In the energy sector, Chinese engineers are building up to 15 power projects that include hydel [hydroelectric], thermal and nuclear plants."

Pakistan faces an electricity shortfall of around 4,000 megawatts in the sweltering summer, leading to lengthy blackouts that make ordinary people's lives a misery and have strangled economic growth.

To combat the crisis, Pakistan has sought Chinese help in building power-generation projects across the country, including nuclear. Aside from the 2,200MW project near Karachi recently launched by Prime Minister Nawaz Sharif, Chinese companies built two of Pakistan's three operational reactors. Chinese engineers are also busy in the construction of a 969MW hydropower project in Kashmir. They have also committed to generate 6,000MW of electricity from coal and wind in southern Sindh province.

But co-operation goes beyond energy. Visiting in May during his first overseas trip after taking office, Premier Li Keqiang linked growth in his country's restive west with that in Pakistan, saying the two sides wanted to create an "economic corridor" to boost development.

The concept involves improving road and rail networks to link China through Pakistan to the Arabian Sea and Iqbal said its benefits would extend to other neighbouring countries.

"The biggest flagship project is going to be the economic corridor," he said. "I hope with its completion, we will be able to create opportunities not just for China and Pakistan but for the entire region."

Source: With string of big-money projects, China deepens ties with Pakistan | South China Morning Post

 

[ladder]

I am not going to waste time on some assumption only to prove you wrong. Chinese are very smart and commercial minded people. Why would the want to import ten to twenty times more expensive labor when better options are available. Pakistan is not some stupid African or Arab country who rely on imported qualified staff to build a simple road.

The point is that who ever is building, Pakistani people will benefit from it, period!

How has any investment in building infrastructure NOT benefit a single country on the globe? Does it matter how many chinese
engineers and technicians are involved in the projects when the roads, dams, grids or whstever they are buding with only add up to local benefits and serve national interests?

When you understand this, come back to debate.

With string of big-money projects, China deepens ties with Pakistan

Mainland firms working on more than 100 major initiatives in energy, roads and technology as South Asian nation tries to right its economy
With string of big-money projects, China deepens ties with Pakistan

PUBLISHED : Monday, 09 December, 2013

Pakistan's recent launch of work on its largest nuclear power plant is the latest example of big-money Chinese infrastructure projects in the troubled nation.

Pakistan, plagued by a homegrown Taliban insurgency, is battling to get its economy back on track and solve a chronic energy crisis that cripples industry.

Politicians in Beijing and Islamabad are fond of extolling the profundity of their friendship in flowery rhetoric and on the ground this has translated into around 10,000 Chinese engineers and workers flocking to Pakistan.

Chinese companies are working on more than 100 major projects in energy, roads and technology, according to Pakistani officials, with an estimated US$18 billion expected to be invested in the coming years.

"Some projects are being done by the government, then most of the projects are being done by the Chinese companies, by the provinces and also with the state enterprises and authorities," said Ahsan Iqbal, Pakistan's federal minister for planning and development. "In the energy sector, Chinese engineers are building up to 15 power projects that include hydel [hydroelectric], thermal and nuclear plants."

Pakistan faces an electricity shortfall of around 4,000 megawatts in the sweltering summer, leading to lengthy blackouts that make ordinary people's lives a misery and have strangled economic growth.

To combat the crisis, Pakistan has sought Chinese help in building power-generation projects across the country, including nuclear. Aside from the 2,200MW project near Karachi recently launched by Prime Minister Nawaz Sharif, Chinese companies built two of Pakistan's three operational reactors. Chinese engineers are also busy in the construction of a 969MW hydropower project in Kashmir. They have also committed to generate 6,000MW of electricity from coal and wind in southern Sindh province.

But co-operation goes beyond energy. Visiting in May during his first overseas trip after taking office, Premier Li Keqiang linked growth in his country's restive west with that in Pakistan, saying the two sides wanted to create an "economic corridor" to boost development.

The concept involves improving road and rail networks to link China through Pakistan to the Arabian Sea and Iqbal said its benefits would extend to other neighbouring countries.

"The biggest flagship project is going to be the economic corridor," he said. "I hope with its completion, we will be able to create opportunities not just for China and Pakistan but for the entire region."

Source: With string of big-money projects, China deepens ties with Pakistan | South China Morning Post

Politicians in Beijing and Islamabad are fond of extolling the profundity of their friendship in flowery rhetoric and on the ground this has translated into around 10,000 Chinese engineers and workers flocking to Pakistan.

Your views in regards to the highlighted texts???

 

[Neo]

Your views in regards to the highlighted texts???

Chinese workforce involves engineers, technicians, advisoers, common labor and secrity personell. After the deadly attack on Chinese engineers and kinppigs in KPK, we have agreed for China to allow full security around these projects. Its upto them how much security they think is needed to secure these expensive projects.

The article also mentions that "Some projects are being done by the government, then most of the projects are being done by the Chinese companies, by the provinces and also with the state enterprises and authorities," said Ahsan Iqbal, Pakistan's federal minister for planning and development. "In the energy sector, Chinese engineers are building up to 15 power projects that include hydel [hydroelectric], thermal and nuclear plants."

Don't be too focused on numbers or work share but see thegreat picture here. Who will benefeit from all these projects? Local business and Pakistani economy or Beijing?

Creation of energy corridor will not only attract Chinese investments but business from all over the world and create thousands of jobs for Pakistani companies.

Under Musharraf we saw FDI surge to more than $7 billion in a single year and decline to merely $400 million under previous government due deteriorating internal security. But things are changing and we have found ideal and wrkable solution with the Chinese and this $20 billion is only the beginning of a long term strategy which will transform the country. We don't care how many engineers or workers Chna is sending, in the end it will all add up to Pakistani economy.

 

[ladder]

Chinese workforce involves engineers, technicians, advisoers, common labor and secrity personell. After the deadly attack on Chinese engineers and kinppigs in KPK, we have agreed for China to allow full security around these projects. Its upto them how much security they think is needed to secure these expensive projects.

The article also mentions that "Some projects are being done by the government, then most of the projects are being done by the Chinese companies, by the provinces and also with the state enterprises and authorities," said Ahsan Iqbal, Pakistan's federal minister for planning and development. "In the energy sector, Chinese engineers are building up to 15 power projects that include hydel [hydroelectric], thermal and nuclear plants."

Don't be too focused on numbers or work share but see thegreat picture here. Who will benefeit from all these projects? Local business and Pakistani economy or Beijing?

Creation of energy corridor will not only attract Chinese investments but business from all over the world and create thousands of jobs for Pakistani companies.

Under Musharraf we saw FDI surge to more than $7 billion in a single year and decline to merely $400 million under previous government due deteriorating internal security. But things are changing and we have found ideal and wrkable solution with the Chinese and this $20 billion is only the beginning of a long term strategy which will transform the country. We don't care how many engineers or workers Chna is sending, in the end it will all add up to Pakistani economy.

Good that you alighted from your high horses which had made you to write hyper-bole statements " Pakistan is not some stupid African or Arab country who rely on imported qualified staff to build a simple road."

we, are in a position to debate. Now, that you are back to terra-firma could you answer my simple question?

1. As the OP article states, there generally are no tenders. So, how price fixation takes place for those infra projects?
2. What and how ancillary industries are benefiting from the on-going projects?
3. What is the employment scope for local people?

Now, looking at the larger picture, though Pakistanis shall not be involved ( in the building or project phase) in construction of these project but they will reap the benefit once completed.

The projects if compared to other similar projects is at a premium, so, unless your loan is converted into grant, you end up paying more. High electricity tariff, high toll tax etc. So, this is the larger picture I see.

What other terms and conditions your govt. has agreed to and at what interest rates, if you follow Pakistani news sources, you would know.

So, in that respect can you say, why first time around the Chinese company interested in thar coal went back? What were the issues dogging the project?

Also, could you comment about the aid money from USA which was used in building mini-hydro power plants?

That's a lot of question, let's see if you can answer looking at the larger picture.

 

[ladder]

Now, coming to the coastal nuclear plants in Karachi, this is what I get.

Karachi coastal power project

In June 2013 the Planning Commission said that two CNNC 1000 MWe class reactors would be used for Karachi 2 and 3 (KANUPP 2&3) near Karachi unit 1. Two coastal sites had been under consideration for the twin 1100 MWe units. CNNC in April 2013 announced an export agreement for the ACP1000, nominally 1100 MWe, apparently for Pakistan. This was confirmed in June by the PAEC which said that the next nuclear project would be 1100 MWe class units which it would build, the Karachi Coastal Power station, costing $9.5 billion.
In July 2013 ECNEC approved two units of the Karachi Costal Power Project with net generation capacity of 2,117 MWe. The total cost of this is estimated at Rs 959 billion ($9.595 billion), with $6.5 billion being vendor finance. At the end of August contracts were signed in Shanghai with CNNC, China Zhongyuan Engineering Co. Ltd. (CZEC), China Nuclear Power Engineering Co. Ltd. (CNPE), Nuclear Power Institute of China (NPIC), and East China Electric Power Designing Institute (ECEPDI). Ground breaking at the site near Paradise Point, 25 km west of Karachi, took place in November 2013, and first concrete is envisaged by the end of 2014. Construction is expected to take 72 months.
The Pakistan Nuclear Regulatory Authority has received the safety analysis of China's ACP1000 reactor from CNNC and is expected to take at least a year to complete the review before granting a construction licence.

Nuclear Power in Pakistan

==============

Could you tell me, how much similar projects in other countries cost? ( With liability clause and without)

 

[t_co]

Good that you alighted from your high horses which had made you to write hyper-bole statements " Pakistan is not some stupid African or Arab country who rely on imported qualified staff to build a simple road."

we, are in a position to debate. Now, that you are back to terra-firma could you answer my simple question?

1. As the OP article states, there generally are no tenders. So, how price fixation takes place for those infra projects?
2. What and how ancillary industries are benefiting from the on-going projects?
3. What is the employment scope for local people?

Now, looking at the larger picture, though Pakistanis shall not be involved ( in the building or project phase) in construction of these project but they will reap the benefit once completed.

China Mobile invests over 2 bln USD in Pakistan > Global Times

Photo taken on Oct. 28, 2013 shows a business office of the Faisalabad branch of China Mobile Pakistan in Faisalabad, Pakistan. Gu Bin, a 38-year-old Chinese from east China's Jiangsu Province, came to Faisalabad this June as a region sales director of China Mobile Pakistan. Now he manages a team of more than 80 Pakistani workers and runs a big market of over 2 million users. "Telecom market here is very competitive due to the early introduction of foreign capital", Gu Bin said "that's why I keep on channelling my team into better marketing instead of just selling". "Although I miss my hometown and family very much, It's good to be working here because I benefited a lot from collaborating with these Pakistani colleagues." Up to October 2013, China Mobile Pakistan has already invested over 2 billion US dollars in Pakistan and provided employment for more than 200,000 local residents. (Xinhua/Huang Zongzhi)

China Mobile alone has created 200,000 jobs in Pakistan; total Chinese investment in Pakistan has created over 700-800,000 jobs.

Second of all, what Neo posted does not imply all those construction jobs are going to Chinese people. Au contraire, Chinese investment in Pakistan often results in projects with mass local employment:

http://www.tigweb.org/action-tools/...stan China relations reaching new heights.doc

The project if compared to other similar projects is at a premium, so, unless your loan is converted into grant, you end up paying more. High electricity tariff, high toll tax etc. So, this is the larger picture I see.

Where is your proof for this claim?

What other terms and conditions your govt. has agreed to and at what interest rates, if you follow Pakistani news sources, you would know.

If you know these terms which you supposedly think are disadvantageous to Pakistan, why not share them in the forum? It is rhetorical sleight of hand to claim that other people 'would know' your points if they simply 'followed Pakistani news sources'. You need to present them for the debate to move forward. You cannot expect your interlocutors to find your evidence for you.

So, in that respect can you say, why first time around the Chinese company interested in thar coal went back? What were the issues dogging the project?

Also, could you comment about the aid money from USA which was used in building mini-hydro power plants?

That's a lot of question, let's see if you can answer looking at the larger picture.

You already seem to have a larger picture in mind. You need to share your larger picture first before asking us to form an opinion.

 

[Dark Sorrow]

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!!!

Buddy too much obsession with Pakistan is not good for your health.
If something good is happening in our neighboring country let it happen, why such a hue and cry.
What was Modi's or AAP context in current article. Its simply about Pakistan and PRC. Lets keep it that way.
Which Muslim country is going to isolate India if Modi comes to power. Answer is No one. Even Americans paid Modi a visit recently.
Buddy you should come out of colonial and imperialist mentality.
In today's era of Globalization not one can isolate anyone. Even US could not isolate Iran.

 

[t_co]

Now, coming to the coastal nuclear plants in Karachi, this is what I get.



Nuclear Power in Pakistan

==============

Could you tell me, how much similar projects in other countries cost? ( With liability clause and without)

6.5 out of the 9.6 bn is being financed by a Chinese bank (that's what vendor financing means).

Economics of nuclear power plants - Wikipedia, the free encyclopedia

"The usual rule of thumb for nuclear power is that about two thirds of the generation cost is accounted for by fixed costs, the main ones being the cost of paying interest on the loans and repaying the capital..." [25]

Areva, the French nuclear plant operator, for example, offers that 70% of the cost of a kWh of nuclear electricity is accounted for by the fixed costs from the construction process.[25] Some analysts argue (for example Steve Thomas, Professor of Energy Studies at the University of Greenwich in the UK, quoted in the book The Doomsday Machine by Martin Cohen and Andrew McKillop ]) that what is often not appreciated in debates about the economics of nuclear power is that the cost of equity, that is companies using their own money to pay for new plants, is generally higher than the cost of debt.[26] Another advantage of borrowing may be that "once large loans have been arranged at low interest rates - perhaps with government support - the money can then be lent out at higher rates of return".[26]

"One of the big problems with nuclear power is the enormous upfront cost. These reactors are extremely expensive to build. While the returns may be very great, they're also very slow. It can sometimes take decades to recoup initial costs. Since many investors have a short attention span, they don't like to wait that long for their investment to pay off."[27]

First off, in a country as unstable as Pakistan, China is probably the only investor willing to stomach the financing of a long-term project like a nuclear power plant.

Second, the financing is at subsidized interest rates, since the China ExIm Bank caps its interest rate on 'strategic' projects at the CDB rate plus 2%, which is below the nominal interest rate on Pakistani government debt (by definition, the lowest rate any Pakistani utility could borrow at).

Third, China is charging $9.6bn in construction costs for 2,117MWe. That is $4,530 of 'overnight' construction costs per kilowatt of capacity.

The US Energy Information Administration puts the 'overnight' construction cost of a dual reactor nuclear plant at $5,350 per kw of capacity.

http://www.eia.gov/forecasts/capitalcost/xls/table1.xls

Ergo, the Chinese plant is actually being constructed at a cheaper price than a Western firm would likely charge the Pakistani government.

('Overnight' construction costs include all engineering studies and construction costs, but exclude operating liability. Since both these prices are 'overnight' costs, this 4,530 vs 5,350 is a direct, apples-to-apples comparison.)

You are trying to imply China is taking advantage of Pakistan in this case. Unfortunately, the laws of finance and economics have shown that is not true.
@Neo - you're welcome.

 

[ladder]

China Mobile invests over 2 bln USD in Pakistan > Global Times



China Mobile alone has created 200,000 jobs in Pakistan; total Chinese investment in Pakistan has created over 700-800,000 jobs.

Second of all, what Neo posted does not imply all those construction jobs are going to Chinese people. Au contraire, Chinese investment in Pakistan often results in projects with mass local employment:

http://www.tigweb.org/action-tools/...stan China relations reaching new heights.doc



Where is your proof for this claim?



If you know these terms which you supposedly think are disadvantageous to Pakistan, why not share them in the forum? It is rhetorical sleight of hand to claim that other people 'would know' your points if they simply 'followed Pakistani news sources'. You need to present them for the debate to move forward. You cannot expect your interlocutors to find your evidence for you.



You already seem to have a larger picture in mind. You need to share your larger picture first before asking us to form an opinion.

So, here's the advocate.

Mr./Ms. why don't you go back and get into the debate ( between the two of us) from where it began? Then it would be a worthwhile discussion. isn't it?

To, reply to this post of yours, I would reply to it as and when it comes to natural progression, when started from beginning.

===============
Also, don't expect me to spoon feed anyone here, he ( to whom I had replied) is a Pakistani, so it's expected of him to follow Pakistani sources. Is it a unnatural asking?

Secondly, the highlighted text that I referenced, originally carried no source, or quoted from the original source. Hence your point is moot.

To, others I have given sufficient hints and starting point to come out with his views or counter views. I am not the original claimant of larger picture.


=========================

Start from the beginning if you want to get into the discussion, You are not that privileged that you come butting in where it is convenient to you.

 

[t_co]

So, here's the advocate.

Mr./Ms. why don't you go back and get into the debate ( between the two of us) from where it began? Then it would be a worthwhile discussion. isn't it?

To, reply to this post of yours, I would reply to it as and when it comes to natural progression, when started from beginning.

http://defenceforumindia.com/forum/...vesting-20-billion-pakistan-2.html#post856244

I was involved in the discussion from an early stage.

===============
Also, don't expect me to spoon feed anyone here, he ( to whom I had replied) is a Pakistani, so it's expected of him to follow Pakistani sources. Is it a unnatural asking?

Yes, of course it is. Regardless of any shared characteristic, in debate, one does not 'expect' their interlocutor to be aware of evidence that supports their own position. Otherwise, your logic would lead to absurdities like @roma being able to claim that since she is a woman and her interlocutor is a man, it's expected for her interlocutor to 'follow' male authors and journalists and obviate her of the need to bring forth evidence.

Secondly, the highlighted text that I referenced, originally carried no source, or quoted from the original source. Hence your point is moot.

Wrong, since you were bringing forward arguments in a post separate from the highlighted text you referenced, and the highlighted text yourself offered no direct support of your claims.

To, others I have given sufficient hints and starting point to come out with his views or counter views. I am not the original claimant of larger picture.

Even if you are not the original claimant of a larger picture, you are a claimant, and hence you need to show what the 'larger picture' is before you try to impose it on others.


=========================

Start from the beginning if you want to get into the discussion, You are not that privileged that you come butting in where it is convenient to you.

I have started in this debate quite early.

 

[ladder]

http://defenceforumindia.com/forum/...vesting-20-billion-pakistan-2.html#post856244

I was involved in the discussion from an early stage.



Yes, of course it is. Regardless of any shared characteristic, in debate, one does not 'expect' their interlocutor to be aware of evidence that supports their own position. Otherwise, your logic would lead to absurdities like @roma being able to claim that since she is a woman and her interlocutor is a man, it's expected for her interlocutor to 'follow' male authors and journalists and obviate her of the need to bring forth evidence.



Wrong, since you were bringing forward arguments in a post separate from the highlighted text you referenced, and the highlighted text yourself offered no direct support of your claims.



Even if you are not the original claimant of a larger picture, you are a claimant, and hence you need to show what the 'larger picture' is before you try to impose it on others.


=========================



I have started in this debate quite early.

Re-quoting for you " Mr./Ms. why don't you go back and get into the debate ( between the two of us) from where it began?"

I can now think exactly why @roma doesn't provides with links. How can see and even if she, you visualize apples for oranges and compare Apples with Orange juice.

So, your presence in the discussion for eternity is of no value to me, and my post and the requirement that I specified.

Regardless of your baiting, I know perfectly where a link is required for worthwhile discussion and where it's spoon feeding. Handicaps like you may require addl. links, but that requirement may be processed after proper request.

Wrong, since you were bringing forward arguments in a post separate from the highlighted text you referenced, and the highlighted text yourself offered no direct support of your claims

Wrong again, it's your onus to prove what I asked is separate to the original line of posting, or original post or original link, which requires further corroboration.

Your, feelings don't make universal principle. Feeling cold in tropical summer is not a universal phenomena but a sign of ailment which definitely needs further investigation.


The same for the latter comment. The onus of proof is of larger picture is with the original claimant. And the discussion ( again refer to original condition) started with certain specific and I didn't ask for posters to look at larger picture.

And highlighted texts most favorably is inline with what I have posted. It's only you who seems to be incapable to link them. And I am not responsible for it. Or am I?


Your starting of your debate early is of no significance to me, as I have pointed out. Now, the choice is yours.

 

[ladder]

6.5 out of the 9.6 bn is being financed by a Chinese bank (that's what vendor financing means).

Economics of nuclear power plants - Wikipedia, the free encyclopedia



First off, in a country as unstable as Pakistan, China is probably the only investor willing to stomach the financing of a long-term project like a nuclear power plant.

Second, the financing is at subsidized interest rates, since the China ExIm Bank caps its interest rate on 'strategic' projects at the CDB rate plus 2%, which is below the nominal interest rate on Pakistani government debt (by definition, the lowest rate any Pakistani utility could borrow at).

Third, China is charging $9.6bn in construction costs for 2,117MWe. That is $4,530 of 'overnight' construction costs per kilowatt of capacity.

The US Energy Information Administration puts the 'overnight' construction cost of a dual reactor nuclear plant at $5,350 per kw of capacity.

http://www.eia.gov/forecasts/capitalcost/xls/table1.xls

Ergo, the Chinese plant is actually being constructed at a cheaper price than a Western firm would likely charge the Pakistani government.

('Overnight' construction costs include all engineering studies and construction costs, but exclude operating liability. Since both these prices are 'overnight' costs, this 4,530 vs 5,350 is a direct, apples-to-apples comparison.)

You are trying to imply China is taking advantage of Pakistan in this case. Unfortunately, the laws of finance and economics have shown that is not true.
@Neo - you're welcome.

Re-quoting for you

Could you tell me, how much similar projects in other countries cost? ( With liability clause and without)

I didn't ask for explanation but figures. And condition for figures.

Links to specifics is necessary and links which is not specific is not helpful.

This should be kept in mind before lecturing any other member, the requirement of links.


So, even if you are comparing the Over-night cost, you are very conveniently leaving behind the 'wider picture'

Some other figures in recent years
There have been a large number of recent estimates from the United States of the costs of new nuclear power plants. For example, Florida Power & Light in February 2008 released projected figures for two new AP1000 reactors at its proposed Turkey Point site. These took into account increases of some 50% in material, equipment and labour since 2004. The new figures for overnight capital cost ranged from $2444 to $3582 /kW, or when grossed up to include cooling towers, site works, land costs, transmission costs and risk management, the total cost came to $3108 to $4540 per kilowatt. Adding in finance charges almost doubled the overall figures at $5780 to $8071 /kW. FPL said that alternatives to nuclear for the plant were not economically attractive.
In May 2008 South Carolina Electric and Gas Co. and Santee Cooper locked in the price and schedule of new reactors for their Summer plant in South Carolina at $9.8 billion. (The budgeted cost earlier in the process was $10.8 billion, but some construction and material costs ended up less than projected.) The EPC contract for completing two 1,117-MW AP1000s is with Westinghouse and the Shaw Group. Beyond the cost of the actual plants, the figure includes forecast inflation and owners' costs for site preparation, contingencies and project financing. The units are expected to be in commercial operation in 2016 and 2019.
In November 2008 Duke Energy Carolinas raised the cost estimate for its Lee plant (2 x 1117 MWe AP1000) to $11 billion, excluding finance and inflation, but apparently including other owners costs.
In November 2008 TVA updated its estimates for Bellefonte units 3 & 4 for which it had submitted a COL application for twin AP1000 reactors, total 2234 MWe. It said that overnight capital cost estimates ranged from $2516 to $4649/kW for a combined construction cost of $5.6 to 10.4 billion. Total cost to the owners would be $9.9 to $17.5 billion.


Regarding bare plant costs, some recent figures apparently for overnight capital cost (or Engineering, Procurement and Construction – EPC – cost) quoted from reputable sources but not necessarily comparable are:

EdF Flamanville EPR: EUR 4 billion/$5.6 billion, so EUR 2434/kW or $3400/kW

Bruce Power Alberta 2x1100 MWe ACR, $6.2 billion, so $2800/kW

CGNPC Hongyanhe 4x1080 CPR-1000 $6.6 billion, so $1530/kW

AEO Novovronezh 6&7 2136 MWe net for $5 billion, so $2340/kW

AEP Volgodonsk 3 & 4, 2 x 1200 MWe VVER $4.8 billion, so $2000/kW

KHNP Shin Kori 3&4 1350 MWe APR-1400 for $5 billion, so $1850/kW

FPL Turkey Point 2 x 1100 MWe AP1000 $2444 to $3582/kW

Progress Energy Levy county 2 x 1105 MWe AP1000 $3462/kW

NRG South Texas 2 x 1350 MWe ABWR $8 billion, so $2900/kW

ENEC for UAE from Kepco, 4 x 1400 MWe APR-1400 $20.4 billion, so $3643/kW

http://www.world-nuclear.org/info/Economic-Aspects/Economics-of-Nuclear-Power/

 

[Ray]

I am all for China helping all impoverished Nations.

It will be a drain on their exchequer and that will limit their military and hegemonic monkey business ('monkey business' as in English usage).

Peace will come to Asia then!

 

[Srinivas_K]

Chinese behave like masters dictating things to ordinary pakistanis, Because of Islamic radicalism bombings are happening, now because of China these pakistanis will taste the irony of lack of human rights.

CCP is hungry for resources and also want tight control on the regions where their money is flowing. Pakistani Leadership will be happy to get money and they do not care much for their people.

I still doubt whether they will create jobs in Pakistan as they promised, Because China generally export all the things including labor.

I am all for China helping all impoverished Nations.

It will be a drain on their exchequer and that will limit their military and hegemonic monkey business ('monkey business' as in English usage).

Peace will come to Asia then!

 

[amoy]

Red carpet
Amending laws to allow Chinese investment – The Express Tribune

More than infra and energy
Chinese group to invest in textile sectors Pakistan Business

The Chief Minister said that Punjab government has planned to set up special garments zone at 1500 acres land near motorway for which site has been identified. He said that all necessary facilities including vocational centre would be provided in garments zone. Shahbaz Sharif said that after getting the status of GSP Plus, exports of textile and garments of the country will increase and new job opportunities would be created. He said that in view of the GSP Plus status, the project of special garments is of great importance.

Also an interesting comparison in [Apparel Worker's Wages] highlighting India and Bangladesh. What is Pakistan's level?

With pay rise in China it's just the timing for labor intensive industries like textile/apparel to relocate, like last waves of exodus from developed world to Asian Tigers, then further transfers onwards to China and ASEAN.

 

[Srinivas_K]

Red carpet
Amending laws to allow Chinese investment – The Express Tribune

More than infra and energy
Chinese group to invest in textile sectors Pakistan Business



Also an interesting comparison in [Apparel Worker's Wages] highlighting India and Bangladesh. What is Pakistan's level?

With pay rise in China it's just the timing for labor intensive industries like textile/apparel to relocate, like last waves of exodus from developed world to Asian Tigers, then further transfers onwards to China and ASEAN.

The rise of wages clearly show that China has no longer the edge when it comes to manufacturing.

They are running towards Africa and other countries but they cannot replicate what they did in the last decade, it is safe to assume that Chinese decade is over.

 

[ladder]

1. As the OP article states, there generally are no tenders. So, how price fixation takes place for those infra projects?

The purpose of the competitive bidding process is to obtain services at the lowest prices, openly and competitively, without any nepotism. While cost efficiency is an overriding consideration in awarding such a contract, it must also be ensured that it is not awarded to a company that does not have the requisite experience and expertise. For the Chinese offer, in the absence of competitive bidding, it would be impossible to determine whether or not another foreign company could provide the same service at a lower cost or provide better quality service at the same cost.

Amending laws to allow Chinese investment – The Express Tribune
@amoy provided the link.
@Neo, your views please.?
@t_co, who is interlocutor in this case?
And what are your expert ( not so expert) views??

 

[amoy]

The rise of wages clearly show that China has no longer the edge when it comes to manufacturing.

They are running towards Africa and other countries but they cannot replicate what they did in the last decade, it is safe to assume that Chinese decade is over.

What does the wage graph tell? India - startling almost 0 increase in 2011 over 2001 whereas Chinese apparel workers wage almost doubled!

Q's -
1) What happened to Indian apparel industry? It's remained low all the time ($170 y2011) throughout 2001-2011 but why hasn't India attracted either increased investment in the sector or purchasing orders shifted in? Are there other factors (hurdles) at work other than wage?

2) Now China has lost her labor cost advantage. In these waves of exodus where are those textile factories (or labor intensive ind. at large) and sourcing shifting to ? The above link I posted has shown Chinese businesses are pursuing Punjab Pakistan to retain the competitive edge.


Chinese group to invest in textile sectors Pakistan Business

Punjab government and Shandong Ruvi Group of China have agreed to promote cooperation in the textile and garments sectors. The Chinese Group is set to invest up to $2 billion in garments and textile sectors in Punjab.

and more - Cambodia cost is the lowest in this sector hence >.Cambodia : Cambodian garment sector attracts huge foreign investment - Apparel News Cambodia

Last year, China turned out to be the largest investor in Cambodian garment sector with a total investment of US$ 121 million followed by Taiwan with US$ 112 million and Korea with US$ 70 million. Singapore, the US, Malaysia, Japan, Thailand, Australia, England and India were some other countries that invested in Cambodian apparel sector in 2012.