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CPEC A Detailed Analysis

WHY COMPARING GWADAR WITH HAMBANTOTA IS IDIOTIC?????

1.Hambantota Port and Airport Was Built With A Commercial Loan Whereas Gwadar Port Was Built With Grants Plus Soft Loan

2.Loans For Gwadar Airport The Loan Has Already Been Converted Into Grant and The Loan For The East Bay Expressway Has Been Converted Into Interest Free Loan.The Remaining Portion of Gwadar Airport Is Being Financed By Oman .So Pakistan Is Practically Getting An Airport Free of Cost


3.The Loans Have Also Been Slashed Down From 3% to 1.6% Which Is Pretty Much In Reach of Pakistan’s Pocket

China converts $230m loan for Gwadar airport into grant

4.The Loans Given For The Power Projects Are Being Given To The IPPs Setting Up The Power Plants And Are Not Part of Government of Pakistan’s Debt.They Are In The Books Of The Investors Operating Those Power Plants

5.Similarly Most Road Projects Are Being Built on BOT Basis And Any Financing By China Ex Im Bank Will Be Debt In The Books Of The Concession Holder

6.Lastly Hambantota Did Attract Investment and Shipping To Begin With But It Was Grossly Mishandled By The Sri Lankan Government.The Unfortunate Event Of A Japanese Ship Getting Hijacked By Port Workers Was A Death Knell for The Port.The Port Was Declared High Risk By Marine Insurance Companies and Thus Became A White Elephant

http://www.newindianexpress.com/world/2016/dec/14/shipping-insurance-companies-dub-hambantota-port-in-sri-lanka-as-high-risk-1548984.html
 
WHY COMPARING GWADAR WITH HAMBANTOTA IS IDIOTIC?????

1.Hambantota Port and Airport Was Built With A Commercial Loan Whereas Gwadar Port Was Built With Grants Plus Soft Loan

2.Loans For Gwadar Airport The Loan Has Already Been Converted Into Grant and The Loan For The East Bay Expressway Has Been Converted Into Interest Free Loan.The Remaining Portion of Gwadar Airport Is Being Financed By Oman .So Pakistan Is Practically Getting An Airport Free of Cost


3.The Loans Have Also Been Slashed Down From 3% to 1.6% Which Is Pretty Much In Reach of Pakistan’s Pocket

China converts $230m loan for Gwadar airport into grant

4.The Loans Given For The Power Projects Are Being Given To The IPPs Setting Up The Power Plants And Are Not Part of Government of Pakistan’s Debt.They Are In The Books Of The Investors Operating Those Power Plants

5.Similarly Most Road Projects Are Being Built on BOT Basis And Any Financing By China Ex Im Bank Will Be Debt In The Books Of The Concession Holder

6.Lastly Hambantota Did Attract Investment and Shipping To Begin With But It Was Grossly Mishandled By The Sri Lankan Government.The Unfortunate Event Of A Japanese Ship Getting Hijacked By Port Workers Was A Death Knell for The Port.The Port Was Declared High Risk By Marine Insurance Companies and Thus Became A White Elephant

http://www.newindianexpress.com/world/2016/dec/14/shipping-insurance-companies-dub-hambantota-port-in-sri-lanka-as-high-risk-1548984.html
Also, as it will gradually operationalise, the increased trade and economic activity will offset the burden of the loans and with every passing day, the loan will be going down and the the economic activity will be going up...
 
Most of Pakistan misunderstands Cpec

cpec is simole investment that's it....

By itself it's not going to change anything apart from what 70b$ investment does

China Western part is indeed land lock but is also sparicly inhabit ed
 
Also, as it will gradually operationalise, the increased trade and economic activity will offset the burden of the loans and with every passing day, the loan will be going down and the the economic activity will be going up...


That Is Exactly What Dr Ishrat Husain Has Tried To Explain.Unfortunately Sane and Rational Voices Are Giving Way To Foreign Funded Propaganda
 
Can't compare Hambantota and Gwadar.

Hambantota was owned by the Lankans and they leased the port to the Chinese with a 70% share in exchange for the loan they took. They converted debt to equity.

In Gwadar's case, the Chinese already lease the port and have a 91% share of the profit. The Chinese even get an 85% share of the free trade zone. Pakistan still owns the debt.
 
Can't compare Hambantota and Gwadar.

Hambantota was owned by the Lankans and they leased the port to the Chinese with a 70% share in exchange for the loan they took. They converted debt to equity.

In Gwadar's case, the Chinese already lease the port and have a 91% share of the profit. The Chinese even get an 85% share of the free trade zone. Pakistan still owns the debt.


No Pakistan Does Not Own Any Debt.Most Of The Debt Is In The Books Of IPP Sponsors.

And The Debt On Major Gwadar Related Projects Has Been Converted To Grant Or Interest Free Loan
 
In The Following Days I Will Be Giving An Up Close Analysis On CPEC Project.Giving A Fair and Impartial Analysis.Hope I Will Get Encouragement
Cant wait. Good luck.

Things I am interested with regard to CPEC includes,

1) When will the real benefits become apparent interms of 2 % GDP growth that we are expecting.
2) When will the industrial zones start exporting
3) Is CPEC a strategic project or a business one
4) There was talk about Railway line from Kashgar to Gwader, any update
5) Also what about the oil city in Gwader and subsequent oil pipeline for the same
6) Do you think would Chinese invest more , over and above $ 62 Billion in the years to come?
7) Do we have any figures interms of investment coming from private Chinese companies in these special economic zones ( thats obviously above this $ 62 Billion for the infrastructure).
8) Does CPEC have any military dimension to it
9) What is Pakistan doing to curb the media propaganda launched by India regarding CPEC.


I think we all very well know that CPEC is blessing for Pakistan, one doesnt have to be apologetic about it, as we have seen the massive benefits only in last 5 years.
 
No Pakistan Does Not Own Any Debt.Most Of The Debt Is In The Books Of IPP Sponsors.

And The Debt On Major Gwadar Related Projects Has Been Converted To Grant Or Interest Free Loan

CPEC debt comes with sovereign guarantees and guaranteed profits. Also the stuff that's been converted to grants is fine, but the principle on the interest free loan still has to be paid.

Most of the CPEC related information has been secret anyway. So nothing can be said beyond that. We will know when the time to repay the loans will come up.
 
Hope I Will Get Encouragement
Good. Look forward to it. My take is simple. CPEC is -

  • neither a magic wand that will instantly transform Pakistan into a booming success story
  • neither a convoluted conspiracy by Beijing to enslave Pakistan with debt as some Indian's are suggesting.

On the other hand the reality is somewhere in between. It is a huge opportunity and only the second one as huge to happen in history of Pakistan since the 1960s US/Pak entente. The opportunity is huge but we Pakistani's - all of us. Government, businesmen, people have to grab and then if we all work together like crazy, like we did with nukes then success is guaranteed. We will reap ten times the cost of CPEC at $70. billion.

So it is up to us. If we start fighting, deflecting and fail to use this opportunity to become a trading nation that CPEC offers us then yes we will end up with huge debt but no means to pay.

Choice is ours to make.
 
Cant wait. Good luck.

Things I am interested with regard to CPEC includes,

1) When will the real benefits become apparent interms of 2 % GDP growth that we are expecting.
2) When will the industrial zones start exporting
3) Is CPEC a strategic project or a business one
4) There was talk about Railway line from Kashgar to Gwader, any update
5) Also what about the oil city in Gwader and subsequent oil pipeline for the same
6) Do you think would Chinese invest more , over and above $ 62 Billion in the years to come?
7) Do we have any figures interms of investment coming from private Chinese companies in these special economic zones ( thats obviously above this $ 62 Billion for the infrastructure).
8) Does CPEC have any military dimension to it
9) What is Pakistan doing to curb the media propaganda launched by India regarding CPEC.


I think we all very well know that CPEC is blessing for Pakistan, one doesnt have to be apologetic about it, as we have seen the massive benefits only in last 5 years.


We have only scratched the Surface

  • When we have 2-3 Desalination plants in Gwadar/Karachi , that is when we will know things have picked up steam
  • Steeles Mills , PIA , and Industrial Karachia + Gwadar have to be visibly active i.e Hiring
 
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