Posts

China wants one-window operation for CPEC projects

ISLAMABAD –  China has asked Pakistan to undertake massive legal reforms immediately if it wants timely completion of projects under the China-Pakistan Economic Corridor.

The Chinese reservations were communicated to Pakistani parliamentarians during an in-camera briefing by the newly appointed Chinese ambassador to Pakistan, Yao Jing, a key official revealed.

The ambassador during the 26th meeting of the Parliamentary Committee on CPEC discussed Chinese perspective and the future role, he said.

He said that it was communicated that Chinese were asking for one-window operationfor all procedures, similar to Jebel Ali free zone in Dubai, where all permissions related to starting any new project can be obtained in one-week time, he said.

The official said that litigation was another reason Chinese were worried about in the port city. “Undue stays delay projects and increase costs, which Chinese are not willing to pay,” the official said.

“It took one-year for the Chinese company to get an environmental assessment report of one project, and with this pace, anyone will get annoyed,” a source said.

He said that Chinese were primarily concerned about the Gwadar port, and the network to connect it with Khunjerab Pass. “Chinese benefit in power and other infrastructure projects is very nominal,” he said.

This is not the first time that concerns have been raised from the Chinese side. According to the source, the demand was also stressed last year at a high-level meeting with Pakistani counterparts in Islamabad.

At an another event in Beijing, China asked the visiting Pakistani delegations to cut down long bureaucratic procedures which were hindering the projects in Gwadar, the source said.

He said that Chinese were very happy with the Punjab government which not only gave them instant approvals but also helped them in getting lucrative tariffs for power projects through NEPRA. He said that Chinese expected similar cooperation in the port city.

Chinese state-owned media has already been reporting Chinese concerns regarding the CPEC.

“Conflict between federal and local authorities, clash of interests between different provinces and partisan infighting have affected the construction of the CPEC”, said an article published in the state-owned Chinese daily Global Times on January 14 under the title, “Reform needed to boost construction of China-Pakistan Economic Corridor”.

It advised Pakistan to carry out massive reforms. It complained that the Pakistani media was not playing its role in highlighting the corridor related issues.

The writer, a high-level management official, asked Pakistan to do more.

“Pakistan needs to carry out deep reforms in several areas, amend laws and frame corresponding policies, it said, adding Pakistani government needs to free its mind. It should recognize that industrial growth has its own laws,” it said.

It further said that the constitutional amendment and law changes can only be achieved through political negotiations. However, the country was not fully prepared for it.

Is it a real concern or just a do more demand from a friendly neighbouring investor to boost the pace of work, no one from the government was willing to comment.

Parliamentarians refused to say anything on the matter stating it was a sensitive matter and they do not want to jeopardize their relations with the generous neighbouring country.

Ministry of planning officials sought time to get back with a detailed reply. However, after continuous reminders for over a week, the officials did not come up with their version.

Source: https://www.cpecb.com/cpecnews/china-wants-one-window-operation-cpec-projects/

/0 Comments/by

Baloch militants can’t endanger CPEC project: Chinese envoy

Chinese Ambassador Yao Jing on Saturday said that Baloch militant organisations the China-Pakistan Economic Corridor (CPEC), while sitting down for an interview with BBC Urdu.

He added that members of such militant groups were “not true Pakistanis”.

Jing assured that the Gwadar port would be transformed into one of the world’s trading hubs owing to the improving security situation in the country in the last few years.

“If they [Baloch militants] are true Pakistanis, they should work in the interest of Pakistan,” he said.

He discounted their capacity to become a threat to the CPEC project.

The envoy also expressed his satisfaction with the security dispensed to 10,000 Chinese nationals working on various projects in the country.

Govt struggles to defend tax waiver to Chinese firm

Back on December 9 of last year 70 Baloch separatist militants, including commanders, renounced violence and laid down their arms on Saturday at a ceremony Chief Minister Sanaullah Zehri and Commander Southern Command Lt Gen Asim Saleem Bajwa were among the participants.

The Ferraris belonging to Baloch separatist groups announced submitting to the writ of the state and becoming part of the national mainstream.

At least 70 Baloch separatist militants, including commanders, renounced violence and laid down their arms on Saturday at a ceremony with then Chief Minister Sanaullah Zehri and Commander Southern Command Lt Gen Asim Saleem Bajwa were among the participants.

The Ferraris belonging to Baloch separatist groups announced submitting to the writ of the state and becoming part of the national mainstream.

Source: https://tribune.com.pk/story/1625687/1-baloch-militants-cant-endanger-cpec-project-chinese-envoy/

/0 Comments/by

China, UNDP sign $4m agreement to help FATA, Balochistan

ISLAMABAD: 

China and the United Nations Development Programme (UNDP) on Friday signed a $4 million agreement to support the recovery of the Federally Administered Tribal Areas (Fata) and Balochistan that have been affected by natural and human-made crises.

According to the agreement, the project, which is funded by the “China South-South Cooperation Assistance Fund”, is expected to help 8,100 families returning to the areas affected by insecurity in Fata, as well as about 19,000 school children in Balochistan after their schools were damaged in the 2010-2011 floods.

UNDP Pakistan Country Director Ignacio Artaza said that Fata and Balochistan are among the country’s least developed regions and have been severely affected by disasters in recent years, adding that the support from the Chinese government will help temporarily displaced families get back on their feet and ensure that schools in Balochistan meet the necessary conditions to keep young students in school.

China contributes $1m for FATA IDPs

For his part, Chinese Ambassador Yao Jing said that the successful launching of this project renewed China’s commitment to deliver strong support to the people of Pakistan.

He vowed that China will continue to increase the Grant Assistance to Pakistan in the future by enriching the categories and sectors, expanding the input into areas with pressing demands, including Fata and Balochistan.

According to the UNDP, the project is built on the UN agency’s ongoing support for early recovery and rehabilitation of affected populations in Pakistan and will provide some 8,100 families in Kurram, South Waziristan, North Waziristan, Khyber and Orakzai agencies with construction kits to rebuild their homes, as well as essential household items.

Balochistan crisis unlikely to impact FATA reforms

In the meantime, 375 schools in Balochistan’s Naseerabad, Jafferabad and Sohbatpur districts, which were the worst affected by the 2010-2011 floods, will receive new furniture and education kits.

It is the second project supported by the “China South-South Cooperation Assistance Fund” in Pakistan. In November 2017, the fund provided 1 million U.S. dollars to the World Food Program to help the organization’s initiative in FATA for humanitarian adds.

The “China South-South Cooperation Assistance Fund” aims at providing finance support to cooperate with international organizations in helping eliminate poverty, improve living conditions and facilitate sustainable development in developing countries.

Source: https://tribune.com.pk/story/1625024/1-china-undp-sign-4m-agreement-help-fata-balochistan/

/0 Comments/by

Six accords of cooperation signed between Gwadar, Chinese Port cities

Pakistan and China on Monday inked five Agreements and a Memorandum of Understanding for strengthening collaboration between Gwadar and Chinese port cities.

Prime Minister Shahid Khaqan Abbasi witnessed the ceremony, as representatives of Pakistan and China inked the documents, following the inauguration of Gwadar Free Zone.

Chief Minister Balochistan Abdul Qudoos Bizenjo, Federal Minister for Interior Ahsan Iqbal, Federal Minister for Maritime Affairs Hasil Khan Bizenjo, Minister of State for Information Marriyum Auranzeb, Chairman China Overseas Port Holding Company Zhang Baozhong and Gwadar Port Authority Dostain Khan Jamaldini were present.

Agreements were signed declaring Pakistan’s Gwadar and China’s Tianjin as sister ports, and Gwadar and Piung as sister cities.

Another agreement was signed for close cooperation among Pakistan State Oil (PSO), GITL and Gwadar.

The Securities and Exchange Commission of Pakistan and China’s Free Trade Zone Company signed an Agreement for cooperation in their respective field.

Another Agreement was signed between Gwadar and HATA Trade City.

The MoU on Gwadar Poverty Alleviation Initiative was inked between Gwadar district government and China Overseas Ports Holding Company.

Source: https://nation.com.pk/29-Jan-2018/six-accords-of-cooperation-signed-between-gwadar-china-s-ports?show=blocks?version=ampexpress.com.pk

/0 Comments/by

K-P hastens deal to develop Rashakai Special Economic Zone

ISLAMABAD: 

The Khyber-Pakhtunkhwa (K-P) government has hastily engaged China Road and Bridge Corporation (CRBC) for the development of its once-favoured Rashakai Special Economic Zone (SEZ) despite the fact that the same company till recently was pushing the case for construction of Hattar as a prioritised zone.

The provincial government signed two pacts – a memorandum of understanding and an engagement agreement – with CRBC in a span of 24 hours, raising transparency concerns in the deal.

CPEC Cultural Caravan warmly welcomed in China

The provincial government entered into an engagement agreement with the CRBC despite not conducting any feasibility study on the Rashakai SEZ of the China-Pakistan Economic Corridor (CPEC), according to officials in the provincial government.

The China Road and Bridge Corporation  CRBC is a subsidiary of China Communications Construction Company (CCCC) that faces transparency issues. In July 2016, Transparency International named CCCC among firms that face “huge corruption scandals” and cause “immense damage to local economies”.

In 2011, the World Bank had also debarred CCCC and all its subsidiaries for fraudulent practices until January 12, 2017. But the CCCC is engaged in some of the critical road projects of CPEC.

K-P Chief Minister Parvez Khattak has given the China Road and Bridge Corporation CRBC preference over another Chinese company – China National Electric Engineering Company Limited (CNEEC). In January 2017, the K-P government and the CNEEC had signed the MoU for development of the Rashakai zone in presence of PTI Chief Imran Khan.

The provincial government did not sign the engagement agreement with the CNEEC despite it completing the feasibility study of Rashakai project, said officials in the CNEEC company.

The CRBC had pushed the case of Hattar for prioritised economic zone over the Rashakai during a meeting of the 7th Joint Cooperation Committee of CPEC, held in Islamabad three months ago.

In the meeting, both the federal and the K-P governments wanted to construct Rashakai-Mardan as the prioritised SEZ. However, China wanted to promote the Hattar site, which is near Havelian dry port and falls on the fast developing eastern corridor.

The prioritised SEZs have been planned to promote bilateral industrial cooperation under CPEC and will be at the centre of long-term economic relations. The industries being set up in the prioritised SEZs will be entitled to special tax treatments.

But quite surprisingly, on January 19, the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) signed MoU with the CRBC for the construction and development of Rashakai SEZ. The very next day – January 20 – the provincial authority and the CRBC signed Engagement Agreement for development of Rashakai SEZ.

The engagement agreement was signed by KPEZDMC Chief Executive Officer Adil Salahuddin andChina Road and Bridge Corporation  CRBC, Pakistan General Manager Li Zhihuai. The K-P chief minister witnessed the signing ceremony.

KPEZDMC’s response was awaited till the filing of the story.

The government did not sign the engagement agreement with CNEEC, as the company had quoted a very high cost for development, said a senior official of the planning department of the K-P government while defending the deal with CRBC. He claimed that CRBC was way ahead of the CNEEC and the decision to engage it was taken at the highest level.

But the claim about low cost of development by CRBC is surprising, as the CRBC has neither yet conducted a feasibility study of the Rashakai zone nor prepared its Master Plan.

In a letter dated January 18, 2018, which was also the last day of its one-year MoU, the CNEEC managing director informed KPEZDMC about completion of the fifth version of the feasibility study. The letter showed per acre land price at Rs6.8 million or $16 per square meter.

The CNEEC has also submitted feasibility study of the Rashakai project in the 7th JCC meeting. The CNEEC is a state-owned company and is 100% subsidiary of China National Machinery Industry Corporation (Sinomach Group).  The company has undertaken 733 projects with total contract amount of $73.6 billion in 48 countries along the Belt and Road project. For Rashakai SEZ, the CNEEC engaged IPPR that also designed 22,600 acres of China-Belarus Industrial Park. The provincial government official said that under the engagement agreement the CRBC will conduct the feasibility study. He said that the MoU had been signed to merge both the Rashakai and Hattar zones as one project.

China-Pakistan health corridor along CPEC proposed

However, the provincial government cannot take this decision, as these powers rest with the federal government and National Development and Reforms Commission (NDRC) of China.

The provincial government official said that a case for the merger has been submitted to the Board of Investment and NDRC. On January 3 of this year, the provincial government had also signed an engagement agreement with CRBC for development of the Hattar zone. Now a single company has been given the gigantic task of completing two competing SEZs. 

Source: https://tribune.com.pk/story/1621416/2-favouring-k-p-hastens-deal-develop-rashakai-special-economic-zone-business/

/0 Comments/by
,

Some CPEC projects could get listed at Pakistan’s stock market

KARACHI: 

Gwadar Free Trade Zone projects, which fall under the umbrella of the China-Pakistan Economic Corridor (CPEC), could be listed at the Pakistan Stock Exchange (PSX), a move aimed at helping Chinese investors raise funds for the endeavour.

In a statement released on Monday, the PSX said it would facilitate Chinese investors – under the broader CPEC projects – in raising funds for projects to be set up at the Gwadar Free Trade Zone and get listed at the bourse.

In this regard, the statement added, the PSX and China Overseas Ports Holding Company Pakistan (Pvt.) Limited (COPHS) officials signed a Memorandum of Understanding (MoU). Prime Minister Shahid Khaqan Abbasi, along with other Pakistani and Chinese government officials, witnessed the signing ceremony.

PM inaugurates free trade zone, first international Gwadar expo

“The primary purpose of the MoU is that the PSX will make its best endeavour to help and facilitate the investors, businesses and companies in the Gwadar Free Trade Zone, so that they can raise funds from the exchange,” the statement said.

“The COPHC will extend help to the PSX in conducting due diligence on the investors and businesses in Gwadar Free Zone that are applying to the stock market for listing of equity and debt securities.”

Through the MoU, both companies have mutually agreed to cooperate for listing of equity and debt securities at PSX, in response to strategic national priorities of the Government of People’s Republic of China and Islamic Republic of Pakistan with respect to ‘One Belt-One Road’ initiative in general and ‘China-Pakistan Economic Corridor (CPEC)’ initiative in particular.

Development at Gwadar Port and Gwadar Free Trade Zone suggests that the Chinese government and private sector entities would invest at the free trade zone. The port and the trade zone are both part of the broader CPEC projects worth over $60 billion. CPEC projects largely fall in the areas of infrastructure development and setting up of power projects in Pakistan.

PM to visit Gwadar amid concerns over anti-CPEC propaganda

The PSX is the national securities exchange of Pakistan, whereas the COPHS is a China-based multinational organisation, which provides expert marine services, container terminal management and maintenance of port facility services.

COPHS works in Pakistan with an aim to transform one of the most strategically located port of Gwadar into an economic hub of Pakistan and will cater to all types of international commercial activities generated from one business to another, irrespective of quantity, quantum and magnitude.

“Gwadar has enormous potential from all angles and dimensions for any kind of business activity, whether known or emerging with ever developing technologies,” added the statement.

Source: https://tribune.com.pk/story/1621425/2-cpec-projects-get-listed-pakistans-stock-market/

/0 Comments/by
,

CPEC is most visible part of Chinese Belt and Road Initiative, says PM Abbasi

Prime Minister Shahid Khaqan Abbasi, while speaking in ‘Belt and Road Impact‘ session of the World Economic Forum in Davos on Wednesday, said the Chinese Belt and Road Initiative (BRI) would link together a series of countries, regions and civilizations to create shared prosperity.

Abbasi said Pakistan is the most visible part of the Chinese Belt and Road Initiative (BRI) because of China-Pakistan Economic Corridor (CPEC), and that the project would result in freer movement of people and greater cultural interaction between the countries, Radio Pakistan reported.

Referring to CPEC, which is part of BRI, the prime minister said projects under the initiative include power plants, highways, modernisation of railways and ports, construction of airports and setting up of economic zones for export growth.

The results of CPEC related projects have already started appearing as our cement plants produced 56 percent additional capacity and exports grew by 15 per cent, Abbasi was quoted as saying.

He said CPEC is also boosting confidence of the investors and Pakistan is getting a lot of investment in addition to CPEC. “Apart from financial sustainability, these projects are indicative of Pakistan being a more responsible global citizen as far as environment is concerned,” he said.

The prime minister said the development of ports and highways, Pakistan can provide much more efficient connectivity to most of Central Asian countries, which are landlocked.

Abbasi thanks Bill Gates

Prime Minister Abbasi later met Bill Gates, Co-Chairman of Bill and Melinda Gates Foundation, at the World Economic Forum. Health Minister Saira Afzal Tarar, Information Minister Marriyum Aurangzeb, and other government officials were also present.

Abbasi reportedly thanked and appreciated the support provided by Bill and Melinda Gates Foundation to Pakistan, particularly for the Polio Eradication Programme. He discussed avenues of partnership in health, education and other social sectors with Gates.

Small and Medium Enterprises (SMEs) and empowerment of farmers through financial and digital inclusion was also discussed during the meeting.

Source: Dawn News, 24th January 2018.

/0 Comments/by

Gwadar Development Authority suspends 100 housing schemes

GWADAR: Though the mushrooming real estate companies are advertising plots at Gwadar, the Gwadar Development Authority (GDA) has suspended around 100 housing schemes for changes in master plan.

According to details, China will revise the master plan of Gwadar city, for which a joint committee of Gwadar Development Authority (GDA) is reviewing the development of master plan after every six months. The decision of suspending the housing schemes was taken by the authority to avoid the haphazard construction in the area.

Talking to Pakistan Today, Gwadar Development Authority (GDA) Director General (DG) Dr Sajjad said that the private real estate firms will remain suspended till formulation of the master plan. The plan is expected to be ready by August 14, 2018.

He said that the master plan of the city is being developed at 290,000 acres of land, out of which private housing societies own almost 16,000 acres. Out of the 290,000 acres, 160,000 acres will be allocated for the residential area.

According to the DG, an ‘oil city’ is also being developed in Gwadar at 80,000 acres of land for which PC-I have been prepared. Replying to a question, he said that apart from the private housing societies, Pakistan Navy holds 1,400 acres for constructing a naval academy in Gwadar.

According to a source, 70 per cent of Gwadar’s land is now in private hands.

Earlier, the Planning Commission had initiated the process to launch a project for developing Gwadar as an integrated ‘smart port city’. The plan was aimed to leverage information technology-based solutions to boost economic productivity and quality of life of citizens of Gwadar, whilst minimising resource consumption and pollution.

With the inclusion of the port in the China-Pakistan Economic Corridor (CPEC) project, there is an urgent need to update the existing plan to reflect the new strategic direction.

As per documents, the current master plan of Gwadar city, last updated in 2005, has two interdependent elements: the port and the city of Gwadar. The strategic focus on simultaneous development is primarily due to the natural and symbolic relationship that exists between a port and the city that surrounds it; one cannot be developed without the other.

A shortage of resources, non-fulfilment of concession agreements by the Pakistan government and the original concessionaire – the Port of Singapore Authority – and the limited commercial activity in Gwadar city have together retarded the development of the port over the last few years.

As of 2013, the concession for the port has been awarded to a Chinese operator who is in the process of updating the port master plan. Under the new plan initiated by the Planning Commission, the port will be considered as a separate entity from the city.

The new plan is also designed to update the existing master plan of Gwadar city, and develop strategies for the establishment of Gwadar as a preferred economic and lifestyle destination.

The plan will be based on inclusive and sustainable strategic development to ensure the socio-economic uplift of the Makran coast in general and the Gwadar region in particular. The plan will recommend regulatory interventions and ways and means to develop Gwadar as a special economic zone (SEZ), and ensure short-term economic growth, including trickle-down effects.

It would also suggest strategies to facilitate trade, tourism, community participation, public-private partnerships and industrial and economic development on a national and regional level.

Source: Pakistan Today, 20th January 2018.

/0 Comments/by