China will receive 91pc revenues from Gwadar port for 40 years

[Shahzaz ud din]

China will receive 91pc revenues from Gwadar port for 40 years
By News Desk -
November 25, 2017
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ISLAMABAD: China will receive 91 percent of the revenues set to be received from Gwadar Port and 9pc will go to Gwadar Port Authority (GPA) for a period of 40 years, the Senate was informed on Friday.

The details were shared by Federal Minister for Ports and Shipping Mir Hasil Bizenjo with senators after they showed their worries over concealment over China-Pakistan Economic Corridor (CPEC) long-term agreement, reported Dawn.

Bizenjo said the agreement was reached on build-operate and transfer model negotiated for a period of 40 years. PML-N’s Senator Kalsoom Parveen of PML-N said agreement had not been inked on basis of parity as had been done with India, she said.

Parveen asked Chairman Senate Raza Rabbani to call for a meeting in which all related departments which signed the agreement should be present. On this request, Rabbani highlighted about the presence of two committees in relation to CPEC, a parliamentary panel and senate committee.

Rabbani asked Parveen to take up this issue with Senate committee on CPEC. Pakhtunkhwa Milli Awami Party (PkMAP) Senator Sardar Azam Musakhel decried that no chairman of the two committees was from Balochistan and accused that China had been provided a concession.

And Pakistan Tehreek-i-Insaf (PTI) Senator Mohsin Aziz, said the involvement of business community was a must in inking of such business dealings, a task which be believed shouldn’t be left to bureaucrats.

PML-N Senator Javed Abbasi said CPEC would offer immense benefits to Pakistan and defended the agreement. He said power projects under CPEC would resolve Pakistan’s energy crisis and several are being established in Sind and Balochistan.

• TAGS
• CPEC
• Gwadar Port
• power projects
• Senate Panel

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[Ryuzaki]

Pretty sweet deal for Chinese,no wonder they are so keen on it
Pakistan only gets 9%.Will the security cost outweigh the 9% revenue?

 

[punit]

Is this real

 

[Qutb-ud-din Aybak]

Pretty sweet deal for Chinese,no wonder they are so keen on it
Pakistan only gets 9%.Will the security cost outweigh the 9% revenue?

CPEC is not only gawader port.
they will get 91 percent from.port revenue.
and we will earn many times more through transportation , toll taxes and increase in business activities along with a second economic hub after Karachi .
in short we will benefit more than the Chinese from this port deal.
and one thing more this 9 percent isn't less too. gawader will earn billions through Chinese ships alone and we will get billions for free,which is better than nothing without any port.

 

[Clutch]

Pretty sweet deal for Chinese,no wonder they are so keen on it
Pakistan only gets 9%.Will the security cost outweigh the 9% revenue?

It's called BOT... pakistan at the end get an infrastructure it didn't have to spend $$$$ for.

Sweet deal for both. ... I say more.

 

[AZADPAKISTAN2009]

China trades 1 Trillion Dollar in 1 year
9% of 1 Trillion = 90 Billion Dollars for Pakistan

Seems reasonable

 

[Clutch]

It's called BOT... pakistan at the end get an in infrastructure it didn't have to spend $$$$ for.

Who's laughing now...

 

[Ryuzaki]

China trades 1 Trillion Dollar in 1 year
9% of 1 Trillion = 90 Billion Dollars for Pakistan

Seems reasonable

Do u honestly believe 1 trillion dollars of goods,most of it made in the Far east on Chinese coast,will travel thousands of kilometres(for example,Shenzen to Kashgar is 5,641 km by road),cross into Pakistan through Karakoram pass which is blocked for 6 months in an year,and will further travel 2500 km through Pakistan to reach Gwadar?
For example take the Suez Canal.More goods pass through it than they will from China to Pakistan in decades,and they certainly do not make 90 billion a year.Will Gwadar handle more trade than Suez Canal?

Just ask yourself 1 question-Why is Ahsan Iqbal hiding details of CPEC from public when he said he would share it a few days ago?

 

[AZADPAKISTAN2009]

 

[Kathin_Singh]

It's called BOT... pakistan at the end get an in infrastructure it didn't have to spend $$$$ for.

Who's laughing now...

Out of so called 'investment' how much is loan and at what interest rate?

Who is laughing now...Chinese ofcourse!

 

[Clutch]

Out of so called 'investment' how much is loan and at what interest rate?

Who is laughing now...Chinese ofcourse!

Gwadar is being developed 100% on Chinese own money... the Chinese were given 40 year lease to Build Own Transfer.

Pakistan does not have any loans or debts for Gwadar.

BOT is the best opportunity start a city from scratch based on the model of Shanghai Free Trade Zone (SFTZ) in Gwadar to interlink the entire region, including Pakistan, Iran, China and Central Asian States.

Win-win

However ... I understand your issue... here is your cure:

Here educate yourself: https://en.m.wikipedia.org/wiki/Build–operate–transfer

 

[The SC]

Build-Operate and Transfer model negotiated for a period of 40 years..This is also the model for Russia's success in signing so many deals for Nuclear plants..4 nuclear reactors will cost a nation almost $30 billion which it cannot come up with otherwise..so Russia finance it for that amount and build the Plant with" payment" spread on 25 years through generated electricity revenues..So it a win -win deal where both benefit.. and at the end of the deal, everything is transferred to the host nation.. with a lot of value plus..like expertise, know-how and qualified Engineers and technicians.. if not a lot of ToT also..
I think in the case of Gwadar port, the Chinese will get back their investments through the ports revenue, the same as the Russians do through the generated electricity revenues..

 

[Kathin_Singh]

Gwadar is being developed 100% on Chinese own money... the Chinese were given 40 year lease to Build Own Transfer.

Pakistan does not have any loans or debts for Gwadar.

BOT is the best opportunity start a city from scratch based on the model of Shanghai Free Trade Zone (SFTZ) in Gwadar to interlink the entire region, including Pakistan, Iran, China and Central Asian States.

Win-win

However ... I understand your issue... here is your cure:

Here educate yourself: https://en.m.wikipedia.org/wiki/Build–operate–transfer

Trying to fool me with nonsense?

Answer me .. Who operated Gwadar port from 2007 to 2013?

 

[DarX]

Trying to fool me with nonsense?

Answer me .. Who operated Gwadar port from 2007 to 2013?

I believe it was a Singapore company, who failed to develop the port and so their contract was cancelled. What's your point?

Do u honestly believe 1 trillion dollars of goods,most of it made in the Far east on Chinese coast,will travel thousands of kilometres(for example,Shenzen to Kashgar is 5,641 km by road),cross into Pakistan through Karakoram pass which is blocked for 6 months in an year,and will further travel 2500 km through Pakistan to reach Gwadar?
For example take the Suez Canal.More goods pass through it than they will from China to Pakistan in decades,and they certainly do not make 90 billion a year.Will Gwadar handle more trade than Suez Canal?

Just ask yourself 1 question-Why is Ahsan Iqbal hiding details of CPEC from public when he said he would share it a few days ago?

Karakoram highway was blocked at Lowari pass but that has been resolved with Lowari tunnel. Now the traffic flows through out the year. Not only that, but other roads are being upgraded to enhance the capacity of the route to handle the traffic.

Pretty sweet deal for Chinese,no wonder they are so keen on it
Pakistan only gets 9%.Will the security cost outweigh the 9% revenue?

The port was hardly generating anything in its current form. But the main benefit will be that the area will see economic activities which will outweigh both the cost of security and the entire revenue of the port.

 

[Clutch]

Trying to fool me with nonsense?

Answer me .. Who operated Gwadar port from 2007 to 2013?

It was Singapore which didn't go anywhere...

Build–operate–transfer
Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, own, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.

Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.

Examples of countries using BOT are Pakistan,[1]Thailand, Turkey, Taiwan, Bahrain, Saudi Arabia,[2]Israel, India, Iran, Croatia, Japan, China, Vietnam, Malaysia, Philippines, Egypt, Myanmar and a few US states (California, Florida, Indiana, Texas, and Virginia). However, in some countries, such as Canada, Australia, New Zealand and Nepal,[3] the term used is build–own–operate–transfer (BOOT). The first BOT was for the China Hotel, built in 1979 by the Hong Kong listed conglomerate Hopewell Holdings Ltd (controlled by Sir Gordon Wu).