Chinese offer to finance whole $2b LNG project in Pakistan

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Chinese offer to finance whole $2b LNG project

Rs184b collected by govt to finance such schemes was spent on other projects. PHOTO: AFP

ISLAMABAD: It appears that the Rs184 billion the government had collected to finance gas infrastructure projects will never be used for their intended purpose, as Chinese have agreed to finance the whole LNG Gwadar terminal and pipeline project.
Originally, the Chinese side was to provide 85% of the financing for the $2 billion project while the remaining 15% ($300 million) was to come from Pakistan’s side. For that purpose, Gas Infrastructure Development Cess (GIDC) was to gather the needed funds for the project.
Pakistan, China ink agreements worth $4.2b
Under the cess, Rs184 billion was collected, which translates to around $1.8 billion, far exceeding the $0.3 billion needed to finance the project.
The Express Tribune previously reported how these funds had already been spent on projects like Metro and Orange Line, according to officials.
When the Chinese pressed, the finance ministry stalled. The reluctance to even release the token money for the project, gave away the truth: funds were no longer available.
After having weighed Pakistan’s inability to pay for the infrastructure project, the Chinese asked the government to apply for a loan – an expensive and burdensome alternative but better than nothing. But the government continued to drag its feet as it wanted to have Project Cycle-1 (PC-1) approved from the Planning Commission beforehand.
China irked by delay in Gwadar project
Left with no alternative and irked by government’s inability to even apply for a loan, the Chinese have agreed to finance 100% of the project, instead of the original 85%.
All the chain of events beggar the question, if Chinese were to indeed be allowed to finance the whole project, what of the Rs184 billion cess?
History
At a time when gas shortage was becoming less of a probable scenario and more of an imminent threat, Pakistan conceived Gwadar-Nawabshah pipeline dream.
It was originally proposed as an alternative to the Iran-Pakistan pipeline, since US sanctions on Tehran at the time meant Pakistan was to surrender its own energy interests.
China-funded LNG project to turn into Iran-Pakistan gas pipeline: petroleum minister
The project is to be developed under a government-to-government agreement with the Chinese side responsible for project implementation alongside financing.
@Mikesingh @Blackwater @Prasanna kumar @Kshatriya87 @Jay Patel
 

3deffect

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hahahaha ...well yeh paisa chinese kahe se bhi nikaal lenge pakistaniyo se..
yaa pakistan apne ko bech kr yeh fund jama krega
 

bose

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Let Chinese invest as much as it wants in Pakistan... They will lose money and burn their face !!
 

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