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China Pakistan Economic Corridor (CPEC) | Updates & Discussions

Sahiwal Coal Power Plant

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Gwadar-Nawabshah pipeline, LNG terminals: All projects will be completed on time, says official

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Government gives December 2017 as deadline. PHOTO: AFP

ISLAMABAD: The 700-kilometre Gwadar-Nawabshah gas pipeline and Liquefied Natural Gas (LNG) terminal projects will be completed within the given schedule, said a senior official of the Ministry of Petroleum and Natural Resources on Wednesday.

“The projects will hopefully be completed by December 2017 with the financial assistance of China,” he said.

“The 42-inch diameter pipeline would be laid along with two compressor stations, while the terminal at Gwadar would have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas.”

He said the $1.4 to $1.5 billion project was being executed on ‘build-operate-transfer (BOT)’ basis and the pipeline would pass through Pasni, Ormara and Hingol before reaching Nawabshah.

The Economic Coordination Committee (ECC) of the cabinet has already approved the construction of the Gwadar-Nawabshah pipeline.

In the next phase, the pipeline would be extended up to Lahore at a cost of $2 billion.
 
Ground Breaking of $44 Million Pak-China Fiber Optic Cable Today


Prime Minister Nawaz Sharif is today scheduled to perform the ground breaking of Pakistan -China Optical Fiber Cable Project, which is part of the China Pakistan Economic Corridor (CPEC).

This $44 million fiber optic cable is being laid between Pakistan and China and it will become another high-speed international connection to cater to the rapidly growing Internet traffic needs of Pakistan.

We aren’t sure why there’s a ground breaking ceremony today, as the project was planned almost five years ago and is already being worked on under CPEC.

According to the Economic Affaires Division (EAD) China has already released $11.24 million for establishment of Cross-border optic fiber cable.

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Estimated Route of Pakistan China Fiber Optic Cable

The task of the project to lay 820 km long cable between Rawalpindi and Khunjrab has been given to Special Communications Organization (SCO), which will be completed in two years.

When completed, this back-haul fiber optic cable will provide Pakistan with a direct telecom access to China, Central Asian States and from there to Europe and to and from the United States.

This back haul fiber optic link was planned long ago and was in fact due for completion by 2015, however, it is now perused under CPEC and may finally get delivered as per promised timelines.

Pakistan is currently connected with the world through four undersea fiber optic cables, while another five are being built and will be operational in the next couple of years.

China and Pakistan have also signed agreements for up-gradation of 1,300-kilometre Karakorum Highway connecting to Islamabad.

In addition to China’s grant, the Exim bank China has agreed to provide the government a concessional loan at an interest rate of 2 percent per annum for cross boarder optic fiber project.

Pakistan will greatly benefit in terms of enhanced security and revenue from the state of the art optic fiber project between Pakistan and China, which will be undertaken by Huawei.


Chinese Merchant Ship namely "Cosco Da Zee Yun" carrying electrical equipment for port cranes arrived in Gwadar.

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Dont want to sound pessimistic or anything but it has been 4 months since the honorable prime minister inagurated the construction of the western route from zhob to mughalkot but the reality is no progress has been made on ground so far....when does the govt intend to start working on this part?????
 
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1320 MW coal Power Plant to be setup in Hub Balochistan

Pakistan China Economic Corridor


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Balochistan projects: Work on stalled highway projects to resume

ISLAMABAD: Dismissal of a case by the Islamabad Court (IHC), work on two crucial highway projects in Balochistan worth Rs17 billion — part of the China-Pakistan Economic Corridor (CPEC) — is likely to resume after months-long break.

The two projects are being financed by the Asian Development Bank (ADB) and set to complete in two years.

Spokesman for the National Highway Authority (NHA) Kashif Zaman said that work on the two major projects, including the upgradation of Zhob-Mughal Kot Section (N-50) and Qila Saifullah-Waigam Rud Section (N-70), would resume soon.

The Zhob-Mughal Kot Section — part of the Western Route of CPEC — is 81-kilometer-long and its upgradation will cost Rs9 billion while the Qila Saifullah-Waigam Rud Section is 128-kilometer-long and will cost nearly Rs8 billion.

He said that the prime minister had laid the foundation stone of these two projects on December 30 last year.

According to documents obtained, the writ petition was filed by two companies, Maqbool Associates (Pvt) Limited and Zarghoon Enterprises (Pvt) Limited, against the federation of Pakistan, NHA, General Manager (P&CA) and Umer Jan and CO of Xuchang Guangli Highway Enng Construction Limited (JV).

However on May 12 this year, the IHC dismissed the case declaring the petition without merit.

“Because of baseless allegations, both mega projects suffered a lot but all-out efforts will be made to overcome the five-month delay and complete both projects in scheduled time period,” said Zaman.


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China unveils rail network upgrade, gas pipeline plans for Pakistan

The two projects are worth $10 billion
China will invest about $8.5 billion to upgrade Pakistan’s rail network and to build a key gas pipeline with Iran to meet the country’s energy needs, a media report said on Thursday.

The Central Development Working Party (CDWP), a Pakistan body to authorise major projects, on Wednesday approved the two projects worth $10 billion. China will provide loans equivalent to 85 per cent ($8.5 billion) of the cost of each project.

The cost of upgrading of Pakistan Railways existing Mainline (ML-I) and establishment of a dry port near Havelian is $8.2 billion, which the Chinese government will finance with a $7 billion concessionary loan

Part of the CPEC package

This project is part of $46 billion China—Pakistan Economic Corridor (CPEC) package and is covered under the CPEC Framework Agreement, signed during the April 2015 visit of the Chinese President to Pakistan.

The estimated cost of Gwadar-Nawabshah LNG Terminal & Pipeline project, also cleared in principle, is $2 billion, including $1.4 billion Chinese loan. This project is strategically important for Pakistan as it will eventually link the country’s gas network with Iranian system.

“The exact costs of both the projects will be firmed up after finalising financing arrangements,” CDWP Chairman and Minister for Planning, Ahsan Iqbal, said.

“After finalisation of the financing arrangements, both the projects will be taken to the Executive Committee of National Economic Council (ECNEC) with firmed up cost for final approval,” he said.

At present, Pakistan Railways is picking up less than 4 per cent of the traffic volume of the country, which the government intends to increase to at least 20 per cent by 2025.

The project is planned to be completed in two phases in five years by 2021 on engineering, procurement and construction (EPC) mode. Phase-I will be completed by December 2017 and Phase-II by the year 2021.

The CDWP also cleared Gwadar-Nawabshah LNG Terminal and Pipeline Project at an estimated cost of roughly $2 billion or Rs. 206.6 billion.

85 p.c. financing by Chinese Exim Bank

The Chinese Exim bank will provide 85 per cent of the financing under government-to-government mode. The EPC contract will be given to a Chinese company. The pipeline project will be included in the CPEC framework.

The key objective of this project is to overcome gas shortages by importing LNG and its transportation through Gwadar-Nawabshah pipeline.

In phase-I, the pipeline will follow the coastal pipeline corridor, which was formally established for the Iran-Pakistan gas pipeline. In phase-II, a 90-kilometer patch will be constructed from Gwadar to Pakistan-Iran border to tie the national network with Iranian system.


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Thanks for those nice pictures and updates.
Nice to see some people I know in the Pak-Linyi trade city pictures. Linyi is just a small city (tier 3) near a major Chinese port. There are more than 400 cities large than it in China. So imagine what can be achieved for Pakistan and China once every infrastructure is laid down.
Let's re-visit here in 2 years time and judge ourselves
 
$8.2b railtrack upgrade project wins go-ahead

ISLAMABAD: Pakistan on Wednesday cleared, in principle, two strategically important $10 billion projects for upgrading a mainline of the Pakistan Railways to smoothen the China-Pakistan Economic Corridor (CPEC) traffic, and construction of a gas pipeline.

The Central Development Working Party (CDWP) gave the necessary nod to both the projects ahead of loans negotiations with Chinese authorities. China will provide loans for both the projects equivalent to 85% ($8.5 billion) of the cost of each project.

According to the project documents, the cost of upgrading of Pakistan Railways existing Mainline (ML-I) and establishment of a dry port near Havelian is $8.2 billion, which the Chinese government will finance with a $7 billion concessionary loan.

This project is part of $46 billion CPEC package and is covered under the CPEC Framework Agreement, signed during the April 2015 visit of Chinese president to Pakistan.

The estimated cost of Gwadar-Nawabshah LNG Terminal & Pipeline project, also cleared in principle, is $2 billion including $1.4 billion Chinese loan. This project is strategically important for Pakistan as it will eventually link the country’s gas network with Iranian system.

“The exact costs of both the projects will be firmed up after finalising financing arrangements,” said CDWP Chairman and Minister for Planning Ahsan Iqbal while talking to The Express Tribune.

He said in order to finalise the financing arrangements, the approvals of the PC-Is of both the projects were necessary. “After finalisation of the financing arrangements, both the projects will be taken to the Executive Committee of National Economic Council (Ecnec) with firmed up cost for final approval,” he said.

ML-I project

The ML-I project has been planned under the CPEC Framework. The $8.2 billion worth PC-I has been prepared on the basis of joint feasibility study carried out by a consortium of firms, namely, M/s Creec of China and M/s Nespak and M/s Pracs of Pakistan.

As per understanding given by M/s Creec, 15% of the total cost of the project will be borne by Pakistan and 85% will be financed from relevant Chinese financial institutions under CPEC framework.

At present, Pakistan Railways is picking up less than 4% of the traffic volume of the country, which the government intends to increase to at least 20% by 2025.

The project envisages upgrading of the railways existing mainline from Karachi to Peshawar having total length of 1,872 km including 91 km Lodhran-Khanewal section and 55 km Taxila-Havelian section.

The major scope of work will involve 1,598 km upgrading of existing double and single track and overhauling of 930 km existing double line. The construction of 676 km new track from Lalamusa to Peshawar including Karachi-Kotri/Hyderabad with UIC-60 rail, construction of tunnels, bridges and culverts along with allied structures and facilities for 25 ton axle load capacity as opposed to existing 22.86 ton permissible axle load are also part of the project.

The project is planned to be completed in two phases in five years by 2021 on engineering, procurement and construction (EPC) mode. Phase-I will be completed by December 2017 and Phase-II by the year 2021.

LNG pipeline

The CDWP also cleared Gwadar-Nawabshah LNG Terminal and Pipeline Project at an estimated cost of roughly $2 billion or Rs206.6 billion. The cost includes $1.4 billion Chinese loan.

The Chinese Exim bank will provide 85% of the financing under government-to-government mode. The EPC contract will be given to a Chinese company. The pipeline project will be included in the CPEC framework, according to the documents.

The key objective of this project is to overcome gas shortages by importing LNG and its transportation through Gwadar-Nawabshah pipeline.

The issue as to whether the implementing agency or the federal government would sign the financing deal with Chinese counterparts remains unaddressed. Another outstanding issue is whether the Exim bank will extend loan at 6% interest rate or 4% rate for this project.

In phase-I, the pipeline will follow the coastal pipeline corridor, which was formally established for the Iran-Pakistan gas pipeline. In phase-II, a 90-kilometer patch will be constructed from Gwadar to Pakistan-Iran border to tie the national network with Iranian system.

The project will be completed in EPC turnkey mode in two years. The financial analysis of the project reveals that the project will be viable, if it operates at its full designed capacity of 1500 mmcfd gas.
 

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