Dovetailing Pakistan through CPEC

Transforming Gwadar fishing village into the most advanced business hub of region

Government Framework Agreement has been signed for Gwadar Eastbay Expressway (19km, connecting Gwadar Port to Mehran Coastal Highway) and 40 percent work is complete. Government Framework Agreement has also been signed for Gwadar New International Airport and 40 percent work is already complete

Gwadar, once a small, sleepy shipping town, is fast transforming into a vibrant destination for the investors of the region. An ignored town on the shores of the Arabian Sea, Gwadar is a coastal village which is a warm-water, deep-sea port; a rarity in the region.

The port features prominently in the China – Pakistan Economic Corridor (CPEC) plan, and is considered to be a crucial link between the ambitious One Belt, One Road and Maritime Silk Road projects.

Gwadar is the central point of the CPEC as the city is being transformed under the Gwadar Master Plan, which is a grant from China for the uplift of the people of Gwadar. Under the master plan, three major projects – Gwadar Port, Gwadar International Airport and Gwadar Free Economic Zone – are being completed.

Government Framework Agreement has been signed for Gwadar Eastbay Expressway (19km, connecting Gwadar Port to Mehran Coastal Highway) and 40 percent work is complete. Government Framework Agreement has also been signed for Gwadar New International Airport and 40 percent work is already complete.

Gwadar Free Zone is also under construction by China Overseas Ports Holding Company Ltd and 50 percent work is almost over. The Chinese company operating the zone has already completed a pilot project at Free Zone where a few Chinese and Pakistani companies have setup their warehouses.

Now work has started at second phase for investors and all facilities have been provided.

Gwadar Smart Port City Master Plan is at feasibility stage with 15 percent work. Expansion of Multi-purpose Terminal including Breakwater and Dredging is at feasibility stage. Gwadar Eastbay Expressway II (19km, connecting Eastbay Expressway I to New Gwadar International Airport) is also at feasibility stage. Fresh Water Supply, Wastewater Treatment Plants for Gwadar City is also at feasibility stage.

Pakistan, China Friendship School has also been completed while Gwadar Pak-China Friendship Hospital is at feasibility study.

Two Pak-China Friendship technical and vocational colleges are being constructed in Balochistan – one each in Gwadar and Quetta.

With each passing day, the China-Pakistan Economic Corridor (CPEC) is unleashing a new wonder for Pakistan. The latest aspect is how this game-changing initiative is helping Pakistan’s politically divided and estranged provinces come closer.

Whether it is Punjab, Khyber Pakhtunkhwa (KP), Sindh, Balochistan, Azad Jammu and Kashmir, Gilgit Baltistan, Federally Administered Tribal Areas (FATA) or the federal capital, all the federating units have got due share and have stakes in the projects related to the CPEC.

All power plants have environmental safeguards and the Chinese companies have installed brand new coal fired power plants with supercritical technology to help prevent environmental hazards. Due to coal fired power plants, state of the art technology has been used

According to experts and officials, CPEC is set to generate 700,000 job opportunities for Pakistani youth in the near future. CPEC projects have already generated 20,000 direct and 60,0000 indirect jobs under the ongoing CPEC projects.

Almost all areas have been covered in the CPEC to ensure across country multi-sectoral development, the Chinese and Pakistani governments have been working day and night to help put Pakistan on road to progress and prosperity.

Background interactions and interviews with the officials involved with the CPEC, it has come to the fore that the recently conducted 6^thJoint Cooperation Committee (JCC) in Beijing has made some drastic decisions to help alleviate differences between the federating units of the country and the number of approved projects under the CPEC has been increased.

It was for the first time that the chief ministers of the four provinces were invited at the JCC which urged the provincial governments to come up with their proposals for more projects to be added to the CPEC list.

It seems that the Khyber Pakhtunkhwa (KP) government has taken full advantage of the Chinese offer. Chief Minister KP Pervez Khattak, once a strong critic of CPEC, has managed to add around 82 new projects with Chinese assistance. Though some of these projects are non-CPEC, yet their significance is relevant.

Pervez Khattak, who recently took a 100-member delegation to Beijing for a road show, claims his government has signed Memorandums of Understanding (MoUs) 82 schemes worth over Rs2.4 trillion with Chinese companies which will usher in an era of economic revolution for the province.

According to Khattak, the KP government fully owns the CPEC now. The CM says that he had formed a steering committee with seven working groups looking over various areas. He said that after feasibility study, the KP would be able to complete these projects.

Interestingly, none of the 82 newly agreed upon projects would require loans, adding that these projects would not become a burden on the KP government. According to details, four MoUs worth $60 million had been signed in agriculture, archaeology and culture sectors while eleven projects were signed worth $7,427.5 million in the energy and power sectors.

KP chief minister says that 19 projects worth $393.7 million had been signed in the higher education sector while seven MoUs were signed in housing sector worth $3332 million. Likewise, he added, $5,704 million worth of 12 projects were signed in industrial sector while seven other MoUs worth $245.2 million had been signed in the information and technology sector.

Two more MoUs were signed in the local government sector; three in mines and minerals; nine in road and infrastructure, and one each in urban development and transportation sectors. Besides, three projects had been signed for improving urban sanitation.

Khatak says that Chinese companies were mainly concerned about the law and order situation in the province and about investment security. He said the government was able to convince the investors that the province’s security situation is now far better than the past and everyone can invest safely in the province without any concerns.

The chief minister said that after signing the MoUs, the government was looking forward to materialise the projects. For this purpose, the chief minister said, the KP government would arrange a summit next July and investors from China will be invited.

The recent JCC meeting also agreed to increase the number of early harvest projects from 16 to 39 which would be completed by year 2018.

Under the program, nine economic zones would include Rashakai Economic Zone on M-1; Special Economic Zone Dhabeji; Bostan Industrial Zone; Punjab – China Economic Zone, M-2 District Sheikhupura; ICT Model Industrial Zone, Islamabad; Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi; Bhimber Industrial Zone; Mohmand Marble City; and Moqpondass SEZ Gilgit-Baltistan.

The provincial governments also got approved some new projects including Keti Bunder Sea Port Development Project in Sindh; Naukundi-Mashkhel-Panjgur Road Project connecting with M-8 & N-85; Chitral CPEC link road from Gilgit, Shandor, Chitral to Chakdara; Mirpur – Muzaffarabad – Mansehra Road Construction for connectivity with CPEC route; Quetta Water Supply Scheme from Pat feeder Canal, Balochistan; and Iron Ore Mining, Processing & Steel Mills complex at Chiniot, Punjab.

However, the federating units would require completing homework before the next JCC for approval of projects.

The energy sector is the most thriving out of CPEC projects as eleven projects are in advance stage. Chinese strategists have planned a good mix to help meet the energy requirement. These projects are set to add 11,000 megawatts to the national grid by the year-end under the CPEC which would help the energy-starved country meet its energy requirement.

Port Qasim Electric Coal Fired Project has two units of 660 megawatts and would generate 1320 megawatts with a cost of US$1,980 million. The project is in IPP mode and would be completed by year 2018. Sahiwal Coal-fired Power Plant would also generate 1320 megawatts by year end. It would cost US$ 1,600 million. The first unit of Sahiwal project would start producing power next month.

Engro Coal-fired project is in Thar, Sindh. It is also 1320 megawatts project with estimated cost of US$ 2,000 million and would complete by 2019.

Its surface mine in Block II of Thar would be using 6.5 metric ton per annum (mtpa) with a cost of US$ 1,470 million. HUBCO coal power plant would also generate 1320 megawatts, with estimated cost of US$ 970 million.

Suki Kinari Hydropower Station KP would generate 870 megawatts with cost of US$1,802 million and awaits ground breaking. Karot Hydropower Station, AJK & Punjab would generate 720 megawatts with a cost of US$1,420 million. Karot has already achieved financial close and is in advance stage.

Moreover, four wind farms are also being developed. Dawood Wind Farm at Bhambore, Sindh, would generate 50 megawatts with a cost of US$125 million. Sachal Wind Farm, Jhimpir, Sindh, would also generate 50MW with a cost of US$134.

The UEP Wind Farm at Jhimpir, Sindh, would generate 100MW with a cost of US$250 million. Pakistan Wind Farm would also generate 100 MW (Jhimpir, Thatta, Sindh) with a cost of US$150 megawatts.

Another major breakthrough is the agreement for feasibility study of the centuries-old railways track of Pakistan from Peshawar to Karachi. The track needs rehabilitation as it has different systems and various speed limits. For instance, the track from Lahore to Khanewal has electricity support system which can help trains run on 160 kilometers per hour. However, from Rawalpindi to Lahore the train can run at 80 kilometers per hour while rest of the track only allows 50 kilometers per hour travel.

Now the Chinese engineers would conduct feasibility study to allow 180 kilometers travel from Karachi to Peshawar.

All power plants have environmental safeguards and the Chinese companies have installed brand new coal fired power plants with supercritical technology to help prevent environmental hazards. Due to coal fired power plants, state of the art technology has been used. Only Gwadar power plant is 300 megawatts which has sub critical technology while all other plants have supercritical technology.

Security is another aspect Pakistan has laid focus on. 15,000 troops have been placed under the Strategic Security Division (SSD) installed for CPEC security by the federal government and the army. The division is being led by Major-General Abid Rafique. Provincial governments are also boosting their own security squads and Punjab has recruited 5000 personnel, KP government has dedicated 4000 personnel and Sindh has placed 4000 security officials for the CPEC security.

One may conclude that CPEC has taken off well before time and all projects are not only in advance stage but also would help transform Pakistan into a new investor-friendly hub of the region.