• Sunday, December 15, 2019

Technical hitches hinder work on economic zones

Discussion in 'Pakistan Economy' started by Kabira, Aug 14, 2019.

  1. Kabira

    Kabira ELITE MEMBER

    Messages:
    13,500
    Joined:
    Jul 12, 2014
    Ratings:
    +12 / 12,043 / -28
    Country:
    Pakistan
    Location:
    Pakistan
    ISLAMABAD: With the authorities still busy in evaluation and land acquisition, work on any of the nine special economic zones (SEZs) to be set up in the country under China-Pakistan Economic Corridor (CPEC) has not yet begun, Dawn has learnt.

    Most of these economic zone projects — which will be established in the federal capital, all the four provinces, Azad Jammu and Kashmir, Gilgit-Baltistan and erstwhile Federally Administered Tribal Areas — are either at the stage of land acquisition or their feasibility reports are being finalised, according to the information provided by the government to the National Assembly in response to a question asked by Pakistan Muslim League-Nawaz lawmaker from Narowal Mehnaz Akber Aziz.

    The nine SEZs are Rashakai Economic Zone in Nowshera (Khyber Pakhtunkhwa); China Special Economic Zone, Dhabeji (Sindh); Bostan Industrial Zone (Balochistan); Allama Iqbal Industrial City, Faisalabad (Punjab); ICT Model Industrial Zone, Islamabad; Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi (Sindh); SEZ at Mirpur (AJK); Mohmand Marble City (formerly Fata) and Moqpondass SEZ in Gilgit-Baltistan.

    The official document shows that none of these SEZs have so far been provided with basic amenities as utility departments are still doing calculations and making evaluations.

    Authorities yet to complete groundwork for nine zones under CPEC

    While an agreement between the Khyber Pakhtunkhwa Economic Zone Development Management Company (KPEZDMC) and the China Road and Bridge Corporation (CRBC) for the development of Rashakai SEZ in Nowshera had been signed on Nov 3, 2018, the government expects that “work on off-site infrastructure facilities” for the project will begin on Oct 31, according to the official document.

    As far as the provision of basic amenities is concerned, the document says that PC-1 for the provision of electricity will be submitted by Aug 30. The power division will then evaluate the proposal and process for funding through the Public Sector Development Programme (PSDP).

    “The petroleum division is making necessary arrangements for provision of gas at the zero point of the zone,” it says, adding that the provincial government will ensure provision of “adequate supply of water”.

    The document says that 1,530 acres for the China SEZ at Dhabeji has already been reserved/ earmarked by the Board of Revenue in Sindh. A detailed feasibility study had been completed in April 2018 by Consortium of Consultants (EY Ford Rhodes, Osmani & Co, RIAA Barker Gillette and IBA Karachi), it says. “The preparation of Request for Proposals and draft concession agreement shall be ready for the developer solicitation through international competitive bidding” by the end of this month, it adds.

    Service providers K-Electric, Sui Southern Gas Company (SSGC) and Karachi Water and Sewerage Board (KWSB) had shared official estimates along with the details of external infrastructure availability and the tentative timelines for provision of electricity, gas and water to the doorstep of the SEZ. The PC-I for 32MW of electricity prepared in coordination with K-Electric was submitted to the power division, Islamabad, on May 29.

    Similarly, the Balochistan industries department had already completed and submitted the feasibility study of Bostan SEZ. An application seeking Bostan SEZ notification as per SEZ Act, 2012, is currently “under evaluation by the Board of Investment (BoI)”, according to the document.

    The earth-breaking ceremony of Allama Iqbal Industrial City (M3), Faisalabad, is expected by the month end. The government claims 80 per cent land for the project has been acquired while efforts are still on for acquisition of remaining land. An application will soon be submitted to the BoI under the SEZ Act, 2012. The Faisalabad Industrial Estate Development and Management Company is carrying out a detailed study for the zone development, as the firm’s demand of utilities will be calculated and forwarded to the power division for funding through the PSDP.

    Due to non-availability of public land in the federal capital, the Islamabad SEZ project has been delayed. The National Industrial Park Management Company (NIP) and the BoI had discussed the requirement for land at I-17 Sector of Islamabad with the Capital Development Authority (CDA). “However, the CDA has conveyed in writing regarding non-availability of public land in the ICT,” the official document says.

    It says the BoI also received an application from the National University of Science and Technology (Nust) for establishing National Science and Technology Park (SEZ) in May. “The evaluation and viability of the project is under process at the BoI”, it explains. Nust also submitted an undertaking that electricity and gas requirement would be met through integral arrangements.

    About the Industrial Park on Pakistan Steel Mills (PSM) land in Karachi, it says the Board of Directors had approved in principle the proposal last year but “the matter is still under consideration between the management of the NIP and the PSM. They will organise meetings shortly to resolve the issue of land and its pricing,” the National Assembly was informed.

    The Mirpur SEZ in AJK is being developed in two phases. The document says that land measuring 178 acres has already been acquired by the Industries Department for Phase I. For the Phase II, it says “land measuring 717 acres has been transferred, whereas acquisition of 193 acres is in progress”. For land acquisition, Rs270 million has been paid to the collector. The consultant has submitted draft feasibility study, PC-I and master plan. The draft feasibility report is, however, under revision due to new demarcation of land. The estimated cost for SEZ Mirpur establishment is around Rs6.749 billion.

    Similarly, the government says that 350 acres have been acquired in erstwhile Fata for setting up of Mohmand Marble City and a feasibility study is being conducted.

    While 250 acres have been acquired for Moqpondass SEZ (Gilgit) and a feasibility study has been submitted by the Gilgit-Baltistan industries department, the National Assembly was informed that a “formal application for declaration of SEZ as per provisions of the SEZ Act 2012 is still awaited”.

    Published in Dawn, August 14th, 2019
    https://www.dawn.com/news/1499413/technical-hitches-hinder-work-on-economic-zones
     
  2. ziaulislam

    ziaulislam ELITE MEMBER

    Messages:
    11,063
    Joined:
    Apr 22, 2010
    Ratings:
    +11 / 8,906 / -2
    Country:
    Pakistan
    Location:
    United States
    its more failure of provincial govt to come up with land (except for KPK) and utilies to provide gas & electricity( due to disribution bottle necks)

    solution is govt needs massive investments in utilities and alot of legislation, which isnt possible due to senate situation, i would recommend using presidential ordinances till senate is conquered in 2021...each can be used 3 times that is almost 1 year of coverage
     
    • Thanks Thanks x 1
  3. Kabira

    Kabira ELITE MEMBER

    Messages:
    13,500
    Joined:
    Jul 12, 2014
    Ratings:
    +12 / 12,043 / -28
    Country:
    Pakistan
    Location:
    Pakistan
    phase 2 of CPEC is going nowhere. This was ideal time to take advantage of industries shifting from China. But fact remain not even single SEZ is working. No provincial government is ready to do anything.

    The Faisalabad one is very old and was not even part of CPEC. By 2012 60% of its land was already sold. There was plan for new CPEC SEZ in separate location with in punjab but then provincial government decided to make SEZ already under construction for years part of it.

    So if one take out Faisalabad SEZ which is older then CPEC, no work started on any other CPEC SEZ. Just consider how long Faisalabad SEZ has been under construction. Are we looking at 2030 when we will see these so called SEZ completed? 2030 world will be very very different from today.
     
    • Thanks Thanks x 1
  4. ziaulislam

    ziaulislam ELITE MEMBER

    Messages:
    11,063
    Joined:
    Apr 22, 2010
    Ratings:
    +11 / 8,906 / -2
    Country:
    Pakistan
    Location:
    United States
    raikshai in KPK is ready
    restt of 10 provinces have refused to offer land there are legislative issues
    last utilites say they dont have gas and elctricity..

    all in all its massive task and alot of work is needed, the govt should axe most of developmental projects to focus on these...no encouraging work in first year, let see what happens this year..

    24 months, if govt cant bring them in 24 months i will say its a failure, 36 months is realistic time line..govt first has to tackle the gas and power problem...it has faced several bottle necks there..
     
  5. Syed1.

    Syed1. SENIOR MEMBER

    Messages:
    3,972
    Joined:
    Dec 7, 2016
    Ratings:
    +1 / 6,620 / -1
    Country:
    Pakistan
    Location:
    Canada
    Why do even basic things take several years to materialize in Pakistan. All the feasibility etc should not take more than six months and the construction of roads and laying utility infrastructure another six months, but here project remains in feasibility stage for 3-5 years.
     
    • Thanks Thanks x 2
  6. Enigma SIG

    Enigma SIG FULL MEMBER

    Messages:
    1,673
    Joined:
    Feb 20, 2009
    Ratings:
    +0 / 1,535 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Typically slow bureaucracy where the ones responsible for pushing things don't do unless they're guaranteed a cut.
     
    • Thanks Thanks x 1
  7. Samlee

    Samlee SENIOR MEMBER

    Messages:
    4,765
    Joined:
    Aug 8, 2010
    Ratings:
    +7 / 5,989 / -0
    Country:
    Pakistan
    Location:
    Pakistan

    Yes This Is Opportune Time To Get Industries From China Considering The Trade War.I Have Written About This At Length.

    https://defence.pk/pdf/threads/something-better-than-oil.619969/


    Instead of Waiting Why Not Invite The Companies To Set Up Their Industries On The Empty Plots Of Existing Industrial Estates and Export Processing Zones Where the infrastructure already exists
     
    • Thanks Thanks x 3
  8. Itachi

    Itachi BANNED

    Messages:
    1,167
    Joined:
    Aug 27, 2013
    Ratings:
    +1 / 1,184 / -0
    Country:
    Pakistan
    Location:
    United States
    Does corruption come under "technical hitches"??? I guess it does :D
     
  9. khansaheeb

    khansaheeb SENIOR MEMBER

    Messages:
    6,013
    Joined:
    Dec 14, 2008
    Ratings:
    +2 / 6,422 / -1
    Country:
    Pakistan
    Location:
    United Kingdom
    Time to get PA or Chinese consultants, project managers and workers to get things done.
     
  10. nahtanbob

    nahtanbob BANNED

    Messages:
    5,600
    Joined:
    Sep 24, 2018
    Ratings:
    +0 / 1,691 / -25
    Country:
    United States
    Location:
    United States
    if china operated at this pace they would living the times of Mao @beijingwalker @TaiShang @Feng Leng