China, Pakistan ink $820m Thar coal agreement!

[Sipahi]

China is discarding all its coal fired plants for cleaner nuclear and solar energy as the world is too, as mentioned in the recently concluded climate change conf in Paris. Coal is one of the biggest polluters of the environment. Thus, China is palming off 11 of its polluting coal plants to Pakistan as part of the CPEC!

Instead of investing billions in the production of nukes at an alarming rate, Pakistan should instead invest in more nuclear power plants for power generation, as well as solar power.

Coal plants will be passe soon as the world moves towards cleaner fuel. But it seems Pakistan has become the dumping ground for dated and cheap fossil fuel plants for its energy requirements.

Electricity production from coal sources (% of total) in India was last measured at 67.94 in 2011,

Pakistan is at 0% coal power currently.

Electricity production from coal sources (% of total) in India

 

[Bilal.]

Nobody needs connections to see what sovereign guarantees and LIBOR+3.3% variable rate on $800 million will mean in the long run.

Pakistan is coming out of a quite a bad patch in the recent past economically and otherwise. Commercial banks will charge you likewise when you are a high risk destination as a country.

 

[VCheng]

Pakistan is coming out of a quite a bad patch in the recent past economically and otherwise. Commercial banks will charge you likewise when you are a high risk destination as a country.

Yes, that is a fair comment. However, the project remains on shaky grounds given the basic setup.

 

[Bilal.]

Yes, that is a fair comment. However, the project remains on shaky grounds given the basic setup.

It's achieving milestones just the way it should.

 

[VCheng]

It's achieving milestones just the way it should.

So far, so good. We will all see the eventual results clearly, good or bad. Good Luck!

 

[Bilal.]

So far, so good. We will all see the eventual results clearly, good or bad. Good Luck!

That is true. The results are and will be clear to see as the project proceeds through it's phases.

 

[VCheng]

That is true. The results are and will be clear to see as the project proceeds through it's phases.

The fact that sovereign guarantees were needed to secure Chinese financing doesn't mean much. Or does it?

 

[Bilal.]

The fact that sovereign guarantees were needed to secure Chinese financing doesn't mean much. Or does it?

Pakistan, bad patch, high risk destination. You wouldn't get sovereign guarantee for our good engineer waqar's project. This one is well grounded.

 

[VCheng]

Pakistan, bad patch, high risk destination. You wouldn't get sovereign guarantee for our good engineer waqar's project. This one is well grounded.

Yes, but this project was blessed by China. Nevertheless, good luck!

 

[Bilal.]

Yes, but this project was blessed by China. Nevertheless, good luck!

China isn't blindly blessing projects.

 

[VCheng]

China isn't blindly blessing projects.

They are being very shrewd in getting good terms and back by sovereign guarantees. Smart!

 

[Bilal.]

They are being very shrewd in getting good terms and back by sovereign guarantees. Smart!

Win Win.

 

[VCheng]

Win Win.

Only if the projects are successful economically.

 

[Bilal.]

Only if the projects are successful economically.

That is true for any project anywhere in the world.

 

[VCheng]

That is true for any project anywhere in the world.

Yes, but Pakistan has a particularly bad record for such projects. Besides, how many loaners get sovereign guarantees to assure they get their money back?