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Shahbaz Rana
ISLAMABAD: According to the draft minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC, both the sides have also agreed to strengthen capabilities of the law-enforcement agencies and investigators.
Energy cooperation
The draft minutes suggested that Pakistan had not been able to achieve its goal to fast-track the work on some of the CPEC energy projects, although it once again gave a commitment “to maintain the tax and tariff policies stable”.
Iqbal had suggested that China should expedite work on 701MW Azad Pattan Hydropower Project, 1124MW Kohala Hydel Project and 1,320MW Thar Block-I Shanghai Electric Co Power Plant, including 7.8mpta Mine. These projects have achieved 90% milestones for financial close.
The draft document stated that financial closure would remain dependent on clearance by a Chinese insurance company that was suffering badly due to non-payment of energy dues by Pakistan.
China has not backed out from its demand that Pakistan should timely clear the outstanding dues and set up a revolving bank account.
“The Chinese side appreciated the efforts made by the Pakistani side to fully pay the tariff of CPEC energy projects in a timely manner and hoped for a further increase in the tariff settlement ratio to ensure repayment of the bank loan and normal operation of CPEC energy projects”, according to the draft minutes.
The minutes referred to the CPEC Energy Project Cooperation Agreement signed in 2014, stating “the Chinese side hopes that the Pakistan side would establish a revolving account soon”.
Pakistan has set up an Energy Fund before the Prime Minister Shehbaz Sharif’s departure to Beijing but it is not equal to the revolving bank account.
In a positive development, China has agreed to help Pakistan meet its energy needs from indigenous resources through conversion of coal into other products for domestic demand as well as exports.
Shahbaz Rana
November 06, 2022
ISLAMABAD: According to the draft minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC, both the sides have also agreed to strengthen capabilities of the law-enforcement agencies and investigators.
Energy cooperation
The draft minutes suggested that Pakistan had not been able to achieve its goal to fast-track the work on some of the CPEC energy projects, although it once again gave a commitment “to maintain the tax and tariff policies stable”.
Iqbal had suggested that China should expedite work on 701MW Azad Pattan Hydropower Project, 1124MW Kohala Hydel Project and 1,320MW Thar Block-I Shanghai Electric Co Power Plant, including 7.8mpta Mine. These projects have achieved 90% milestones for financial close.
The draft document stated that financial closure would remain dependent on clearance by a Chinese insurance company that was suffering badly due to non-payment of energy dues by Pakistan.
China has not backed out from its demand that Pakistan should timely clear the outstanding dues and set up a revolving bank account.
“The Chinese side appreciated the efforts made by the Pakistani side to fully pay the tariff of CPEC energy projects in a timely manner and hoped for a further increase in the tariff settlement ratio to ensure repayment of the bank loan and normal operation of CPEC energy projects”, according to the draft minutes.
The minutes referred to the CPEC Energy Project Cooperation Agreement signed in 2014, stating “the Chinese side hopes that the Pakistan side would establish a revolving account soon”.
Pakistan has set up an Energy Fund before the Prime Minister Shehbaz Sharif’s departure to Beijing but it is not equal to the revolving bank account.
In a positive development, China has agreed to help Pakistan meet its energy needs from indigenous resources through conversion of coal into other products for domestic demand as well as exports.