China reveals its cards for investing $20 billion in Pakistan

[AhsanAmin]

Chinese have very strict practice to not meddle in our politics. They do get a lot of say in our foreign policy several times which we do not mind since mostly their interests in international affairs is very similar to ours when we contrast it with other foreign powers. We can recall that Pakistan was instrumental in forming a 'friends of China' group in UN and it was probably the right thing to do since our interests were more common with their interests as opposed to interests of a communist country or an imperial nation because Chinese had a similar third world like culture, similar international interests and there was quite a bit of mutual cooperation.

I do not want to say anything absurd. Terrorism hurts both our country and the western world. But when it comes to aid they give us they have made enough calculations of their own. Cost of a dud bomb explosion in New York to American economy by an Afghan/or Pakistani due to unrest and instability here would be easily more than ten times the aid they give us every year. We better not talk about what can happen if there are any casualties. So to call this aid an affair of total benevolence would be misleading. We would not have cared about calling this aid anything bad if the purpose was to promote mutual interests only and if they never meddled in our politics which they actually like to do against the will of the people here. And American companies would not be willing to make their hands dirty in remote Pakistani rural areas as Chinese are willing to do because of relative similarity in culture and living standards.

 

[itaskol]

That's what they've done in Africa.

Thats because the Africans are really very lazy.
Can not compare with Pakistani workers.

 

[DESERT FIGHTER]

That's what they've done in Africa.

Not in Pak... My cousin is an electric eng working for FWO on GhandhRa Airport project ... More than half of the project is contracted to a Chinese firm.. So I know what I'm talkin about.

 

[kbd-raaf]

We are building the projects for Pakistan under contract.

In return we receive payment, goodwill, and a more productive use of our money compared to sitting in US and Euro bonds.

As far as I know, we don't have majority ownership in any of the projects we have built for Pakistan.

Under contract from whom? - The Chinese investment bank presenting the credit?

They are going to build and handover and get back their loan in installment.

Build, Operate and Transfer then.

How would the Chinese Companies building Infrastructure for us with the funding provided by different Chinese Corporations give them 'control' or 'ownership' of the Infrastructure ?
The Koreans, when they built the Motorway Highways for us with their own finances, got a share of the profits from the Toll Taxes on them for the next few years to recoup their Investment & get a Return on it as well afterwards the Revenue was the sole prerogative of the National Highway Authority which now adds it to the National Exchequer - I would imagine the same happening in this case !

BOT as noted above. The OP made it seem like it was BOO. (on the order of factories and and so forth).

Thats because the Africans are really very lazy.
Can not compare with Pakistani workers.

Oh yes, dem lazy Africans and the martial Pakistanis.

 

[Armstrong]

BOT as noted above. The OP made it seem like it was BOO. (on the order of factories and and so forth).

I can't imagine if there ever was any Infrastructure Project that was other than one that was BOT; a mine - yes but a dam or a bridge - I can't think of any, certainly not in Pakistan !

 

[kbd-raaf]

I can't imagine if there ever was any Infrastructure Project that was other than one that was BOT; a mine - yes but a dam or a bridge - I can't think of any, certainly not in Pakistan !

Mines, factories, etc

 

[Armstrong]

Mines, factories, etc

I don't think the OP talked about mines or factories anywhere or even about Power Plants for that matter; their focus seems to be on Dams !

 

[Fattyacids]

Chinese have very strict practice to not meddle in our politics. They do get a lot of say in our foreign policy several times which we do not mind since mostly their interests in international affairs is very similar to ours when we contrast it with other foreign powers. We can recall that Pakistan was instrumental in forming a 'friends of China' group in UN and it was probably the right thing to do since our interests were more common with their interests as opposed to interests of a communist country or an imperial nation because Chinese had a similar third world like culture, similar international interests and there was quite a bit of mutual cooperation.

I do not want to say anything absurd. Terrorism hurts both our country and the western world. But when it comes to aid they give us they have made enough calculations of their own. Cost of a dud bomb explosion in New York to American economy by an Afghan/or Pakistani due to unrest and instability here would be easily more than ten times the aid they give us every year. We better not talk about what can happen if there are any casualties. So to call this aid an affair of total benevolence would be misleading. We would not have cared about calling this aid anything bad if the purpose was to promote mutual interests only and if they never meddled in our politics which they actually like to do against the will of the people here. And American companies would not be willing to make their hands dirty in remote Pakistani rural areas as Chinese are willing to do because of relative similarity in culture and living standards.

Non-interference is the cornerstone of China foreign policy everywhere.

US refusal to invest in infrastructure project is not because they're afraid to get their hands dirty. China willingness has nothing do to with similarity in culture or living standard with Pakistan(actually there's little similarity) Every industrialized country build its own infrastructure with its own labour. Construction workers in the US are all locals, likewise in EU and Japan. US companies are not interested in these infrastructure projects under soft loan, simply it's just not profitable. If Pakistan has oilfield project, you bet the Americans will get their hands and faces dirty.

 

[kbd-raaf]

I don't think the OP talked about mines or factories anywhere or even about Power Plants for that matter; their focus seems to be on Dams !

Pretty sure I saw mention of power plants.

But the tone of the article indicated that the whole shebang was being handed over to them. That would be a cause for concern, don't you think.

Heck if Australia started handing over it's power plants/dams etc to India I'd be worried.

 

[Bilal.]

Pretty sure I saw mention of power plants.

But the tone of the article indicated that the whole shebang was being handed over to them. That would be a cause for concern, don't you think.

Heck if Australia started handing over it's power plants/dams etc to India I'd be worried.

Dude stop repeating the same thing over and over. It's construction contract they are talking about. Once constructed the projects will be handed over to Pakistan but we will have to pay back the financed amount as long term soft loans.

There are a ton of projects being constructed and already constructed by Chinese contractors, the only difference in this case is the offer of financing(loans not grants) and in return assurance that the projects will be contracted to Chinese firms for construction only.

 

[cloud_9]

China reveals its cards for investing $20 billion in Pakistan​

Hand over all projects without any bidding, asks Beijing; Islamabad ready, changes in laws being considered

ISLAMABAD: China is demanding that all mega power projects, including the Bhasha Dam, Gaddani and Lakhra coal plants, the Tarbela Extension project and many transmission lines, be handed over to China without any international bidding process, and Beijing will directly invest $22 billion in Pakistan.

Pretty standard when you look into their handouts around the world and I would say the right choice as they also need business.Chinese are not going to toss their kuai into a sink hole.

 

[Khan_patriot]

we should jump at this opportunity but come up with a plans for the future as well

 

[AhsanAmin]

US refusal to invest in infrastructure project is not because they're afraid to get their hands dirty. China willingness has nothing do to with similarity in culture or living standard with Pakistan(actually there's little similarity) Every industrialized country build its own infrastructure with its own labour. Construction workers in the US are all locals, likewise in EU and Japan.

Mostly would be immigrants, and many of them illegal. But this has just enough relevance since for most infrastructure projects here, the labour would probably come from local population and managed by smaller local construction companies subcontracted to do this by the main firm.

But a Chinese engineer, as I have seen in the past myself, would eagerly go to rural areas and live in makeshift houses since most Chinese, even those who are affluent now, are more familiar with similar life style and would have witnessed similar experiences in some part of their life. And Chinese engineers, usually paid by Chinese standards, would not demand a pay as high as required to get an American engineer to work here. You will really have to pay an American engineer far more than he earns in America, otherwise he has no incentive to work here since there is a very high opportunity cost. Which seems very natural. This is probably a part of comparative advantage of nations.

 

[AZADPAKISTAN2009]

Great offer by Chinese Brothers

• Bhasha Dam
• Gaddani
• Lakhra coal plants
• Tarbela Extension project
• Transmission lines

Financing being offered $22,000,000,000,000 (22 Billion Dollars)

Out of these $22 Billion , if $1Billion could be allocated for Railways Locomotives its a ideal deal for Pakistan. Let Chinese construct next generation Railways as well

Only concern would be Chinese friends would hire 80% Local Engineers, as means for on going development and training efforts & Train local labor force. Pakistan's real challenge is training their local workforce , and this cooperation would be ideal to train 1,000-20,000 engineers if the deal is worked out correctly

Its Financing , Pakistan will pay back Chinese brothers back , once the Energy projects yeild economic boom for Local companies.

Thank you China !!

This offer & Iran - Pakistan gas pipeline are two no brainer projects

 

[Chinese-Dragon]

Only concern would be Chinese friends would hire 80% Local Engineers, as means for on going development and training efforts & Train local labor force. Pakistan's real challenge is training their local workforce , and this cooperation would be ideal to train 1,000-20,000 engineers if the deal is worked out correctly

Its Financing , Pakistan will pay back Chinese brothers back , once the Energy projects yeild economic boom for Local companies.

Pakistan has a great number of skilled professionals in their workforce.

There is no shortage of skilled workers in Pakistan, the only issue I guess might be the language barrier.

Chinese generally have a lower standard of English compared to South Asians, though the ones going to Pakistan should know some Urdu at least.