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Wow. What superb designing and a beautiful building..
CPEC updates at Gwadar
- Thread starter ghazi52
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Wow. What superb designing and a beautiful building..
Chris Logan
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Hopefully this brings peace and prosperity to the local people.
ghazi52
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GWADAR
In contrast to the slow progress on SEZs, a different model has been underway in Gwadar (see photo 3). After the China Overseas Ports Holding Company took over the management of the port, the company “leased over 650 acres of land . . . to build and operate” a Free Trade Zone. Unlike the SEZs, the free trade zone operates as “a free port . . . similar to [how] Hong Kong [operates].” China receives 91 percent of the profits from the port, which it will run for forty years under a “build-operate and transfer model [sic].
China has invested billions to meet long-standing Pakistani requests to help turn the port of Gwadar into a regional hub for trade.
Projects in Gwadar featured prominently in the JCC meetings, particularly at the fourth JCC meeting in March 2015. What is striking about the minutes from that meeting is the stress placed on the “Social Sector Development of Gwadar Region” with statements such as the “JCC also appreciated the progress on social sector projects.
Both sides were keen to ensure the success of the project, and the inclusion of so many prominent social sector projects was important for the public image of the CPEC in Balochistan, a marginalized province with multiple insurgent groups. As Small notes, Chinese workers had been attacked in Gwadar before, notably in 2004 and 2007.
In October 2019, shortly before Khan visited China, generous tax exemptions were granted to investors in Gwadar including for income tax, sales tax, and federal exercise duties. Although the Pakistani government’s concession of these exemptions met long-standing Chinese demands, they also reflected the strategic importance of the port for the Pakistan Navy. It is no accident that the decision to grant these exemptions was made by the National Development Council, which is chaired by the prime minister but crucially includes the chief of army staff, reflecting the changed balance of power in Pakistan.
The granting of these exemptions stood in stark contrast to the lack of concessions over the payment of income tax for investors in the SEZs, one of China’s concerns, as discussed above. Developments at the Gwadar free trade zone look more promising on paper than those of the SEZs. Recently, the chair of the China Overseas Port Holding Company, Zhang Baozhong, has claimed that “43 Chinese companies are going to invest while 200 more firms have been registered for the purpose. However, it remains to be seen how much investment actually materializes from these expressions of interest.
China also has a strategic goal at stake in the development of the Gwadar Port, and most of the funding for projects in Gwadar “comes in the form of grants and interest free loans. However, it is striking that, in contrast to the SEZs, several of the Gwadar projects publicized in the early harvest phase of the CPEC were designed to appease local communities in the province and in the surrounding area. These included the Pak China Friendship Hospital, the Pak-China Technical and Vocational Institute, the Gwadar Livelihood Project, and the establishment of Gwadar University. Other projects such as a desalination initiative also benefit the immediate area.
The Gwadar Livelihood Project was of particular importance as it involved the Chinese holding company overseeing the port taking “effective measures for social sector development” and the “pgradation and development of fishing, boat making and maintenance services to protect and promote livelihoods of [the] local population.
Scholar Frederic Grare, writing in 2018, suggested that these measures were designed to appease the local population and decrease the security challenges of the project. Grare wrote, “Interestingly, the Chinese authorities seemed to understand the problem better than their Pakistani counterparts: they built a school, sent doctors and promised some $500 million for the construction of a hospital, a college, and various infrastructure projects to supply the city with drinking water.
Yet, despite the commitment of the PTI government to socioeconomic development, many of these projects to win over local residents were removed from the 2018–2019 PSDP. In November 2019, both the Gwadar Livelihood Project and the Development of Gwadar University were removed from the Gwadar project pages of the CPEC website.
Even before the removal of the Livelihood Project from the CPEC website, local fishermen had expressed their concerns that their livelihoods were being adversely affected by the CPEC and that the Pakistani government had not kept its development promises to them. Despite a promise from Pakistani officials that “CPEC projects and education schemes would not be dropped . . . at least four projects of [the] CPEC and one dozen schemes of Gwadar [were] dropped from the PSDP.
Although conditions of austerity partly explain the decision to drop these projects, Khan’s concern about the CPEC is also part of the explanation. Despite being the Pakistani province with the largest territorial area, its small population (6 percent of the country’s total) has meant that successive Pakistani governments have failed to invest in Balochistan since it holds fewer seats in the National Assembly than any other province.
The fishing sector represents an important part of Gwadar’s development because of its commercial potential. The port’s fishing community has been expressing concerns about being displaced from their traditional fishing grounds due to the construction of CPEC projects such as the Eastbay Expressway for several years. More recently however, their entire livelihood has come under threat as a result of developments related to the CPEC.
In October 2020, Pakistani fishermen in Sindh and Balochistan protested against the arrival of Chinese trawlers that would fish in the exclusive economic zones of Sindh and Punjab. According to one news account, the “president of the Gwadar Fishermen Alliance [argued that] the Chinese ships will badly hurt local fishermen . . . Fishing in the sea is a source of livelihood for over 2.5 million people . . . and the new trawlers will deprive us of our livelihood The locals are extremely worried about fishing stocks being depleted. As one reporter noted, an adviser on marine fisheries for World Wildlife Fund-Pakistan named Moazzam Khan said “Chinese fishermen are eager to fish in Pakistan waters as they can sell the catch back home duty-free.
Responding to this latest wave of concerns over the future of fishing in Gwadar, the Chinese consul general countered that China was providing assistance to local fishermen in the form of “engines, solar panels and fishing nets . . . to help increase their fishing capacity. The Chinese government also has encouraged them to “seek [the Pakistani] federal and provincial government’s help in developing more fishing cultures to boost their future fishing capacity. The latter is seen as a precondition to establish processing factories and storage plants that would enable Pakistani seafood to be exported.
The Gwadar free trade zone does include a “fishery processing centre. However, while a 2013 World Bank report noted that there was an urgent need for processing facilities closer to the sea, these latest developments suggest that the local Pakistani fishing community will not be the ones to benefit.
Overall, it is clear that China is keen to be seen as responsive to the local population’s concerns in Gwadar, perhaps more so than the current PTI government. China has a clear interest in minimizing the security challenges to the project. In this respect, Chinese actors face an uphill struggle, not least because of the province’s long history of economic deprivation and marginalization. In addition, whether local communities are able to benefit from a more industrialized economy is open to question, given the low level of skills development in the province.
Recently, progress does appear to have been made on completing the Technical and Vocational Institute, a project that “aims to produce skilled manpower in different areas to [allow the local population to] take maximum advantage of CPEC linked opportunities. There will be concerns from locals that Pakistanis from other provinces will take advantage of these opportunities, and, as with the development of the free trade zone and the fishing processing center, benefits will not necessarily accrue to the local areas around Gwadar. In addition, the tension between securing the buy-in of local communities and the need to increase security is likely to remain, as was revealed in December 2020 by attempts, allegedly “at the behest of” Chinese actors according to some media accounts, to physically fence off parts of Gwadar.
carnegieendowment.org
In contrast to the slow progress on SEZs, a different model has been underway in Gwadar (see photo 3). After the China Overseas Ports Holding Company took over the management of the port, the company “leased over 650 acres of land . . . to build and operate” a Free Trade Zone. Unlike the SEZs, the free trade zone operates as “a free port . . . similar to [how] Hong Kong [operates].” China receives 91 percent of the profits from the port, which it will run for forty years under a “build-operate and transfer model [sic].
Projects in Gwadar featured prominently in the JCC meetings, particularly at the fourth JCC meeting in March 2015. What is striking about the minutes from that meeting is the stress placed on the “Social Sector Development of Gwadar Region” with statements such as the “JCC also appreciated the progress on social sector projects.
Both sides were keen to ensure the success of the project, and the inclusion of so many prominent social sector projects was important for the public image of the CPEC in Balochistan, a marginalized province with multiple insurgent groups. As Small notes, Chinese workers had been attacked in Gwadar before, notably in 2004 and 2007.
In October 2019, shortly before Khan visited China, generous tax exemptions were granted to investors in Gwadar including for income tax, sales tax, and federal exercise duties. Although the Pakistani government’s concession of these exemptions met long-standing Chinese demands, they also reflected the strategic importance of the port for the Pakistan Navy. It is no accident that the decision to grant these exemptions was made by the National Development Council, which is chaired by the prime minister but crucially includes the chief of army staff, reflecting the changed balance of power in Pakistan.
The granting of these exemptions stood in stark contrast to the lack of concessions over the payment of income tax for investors in the SEZs, one of China’s concerns, as discussed above. Developments at the Gwadar free trade zone look more promising on paper than those of the SEZs. Recently, the chair of the China Overseas Port Holding Company, Zhang Baozhong, has claimed that “43 Chinese companies are going to invest while 200 more firms have been registered for the purpose. However, it remains to be seen how much investment actually materializes from these expressions of interest.
China also has a strategic goal at stake in the development of the Gwadar Port, and most of the funding for projects in Gwadar “comes in the form of grants and interest free loans. However, it is striking that, in contrast to the SEZs, several of the Gwadar projects publicized in the early harvest phase of the CPEC were designed to appease local communities in the province and in the surrounding area. These included the Pak China Friendship Hospital, the Pak-China Technical and Vocational Institute, the Gwadar Livelihood Project, and the establishment of Gwadar University. Other projects such as a desalination initiative also benefit the immediate area.
The Gwadar Livelihood Project was of particular importance as it involved the Chinese holding company overseeing the port taking “effective measures for social sector development” and the “pgradation and development of fishing, boat making and maintenance services to protect and promote livelihoods of [the] local population.
Scholar Frederic Grare, writing in 2018, suggested that these measures were designed to appease the local population and decrease the security challenges of the project. Grare wrote, “Interestingly, the Chinese authorities seemed to understand the problem better than their Pakistani counterparts: they built a school, sent doctors and promised some $500 million for the construction of a hospital, a college, and various infrastructure projects to supply the city with drinking water.
Yet, despite the commitment of the PTI government to socioeconomic development, many of these projects to win over local residents were removed from the 2018–2019 PSDP. In November 2019, both the Gwadar Livelihood Project and the Development of Gwadar University were removed from the Gwadar project pages of the CPEC website.
Even before the removal of the Livelihood Project from the CPEC website, local fishermen had expressed their concerns that their livelihoods were being adversely affected by the CPEC and that the Pakistani government had not kept its development promises to them. Despite a promise from Pakistani officials that “CPEC projects and education schemes would not be dropped . . . at least four projects of [the] CPEC and one dozen schemes of Gwadar [were] dropped from the PSDP.
Although conditions of austerity partly explain the decision to drop these projects, Khan’s concern about the CPEC is also part of the explanation. Despite being the Pakistani province with the largest territorial area, its small population (6 percent of the country’s total) has meant that successive Pakistani governments have failed to invest in Balochistan since it holds fewer seats in the National Assembly than any other province.
The fishing sector represents an important part of Gwadar’s development because of its commercial potential. The port’s fishing community has been expressing concerns about being displaced from their traditional fishing grounds due to the construction of CPEC projects such as the Eastbay Expressway for several years. More recently however, their entire livelihood has come under threat as a result of developments related to the CPEC.
In October 2020, Pakistani fishermen in Sindh and Balochistan protested against the arrival of Chinese trawlers that would fish in the exclusive economic zones of Sindh and Punjab. According to one news account, the “president of the Gwadar Fishermen Alliance [argued that] the Chinese ships will badly hurt local fishermen . . . Fishing in the sea is a source of livelihood for over 2.5 million people . . . and the new trawlers will deprive us of our livelihood The locals are extremely worried about fishing stocks being depleted. As one reporter noted, an adviser on marine fisheries for World Wildlife Fund-Pakistan named Moazzam Khan said “Chinese fishermen are eager to fish in Pakistan waters as they can sell the catch back home duty-free.
Responding to this latest wave of concerns over the future of fishing in Gwadar, the Chinese consul general countered that China was providing assistance to local fishermen in the form of “engines, solar panels and fishing nets . . . to help increase their fishing capacity. The Chinese government also has encouraged them to “seek [the Pakistani] federal and provincial government’s help in developing more fishing cultures to boost their future fishing capacity. The latter is seen as a precondition to establish processing factories and storage plants that would enable Pakistani seafood to be exported.
The Gwadar free trade zone does include a “fishery processing centre. However, while a 2013 World Bank report noted that there was an urgent need for processing facilities closer to the sea, these latest developments suggest that the local Pakistani fishing community will not be the ones to benefit.
Overall, it is clear that China is keen to be seen as responsive to the local population’s concerns in Gwadar, perhaps more so than the current PTI government. China has a clear interest in minimizing the security challenges to the project. In this respect, Chinese actors face an uphill struggle, not least because of the province’s long history of economic deprivation and marginalization. In addition, whether local communities are able to benefit from a more industrialized economy is open to question, given the low level of skills development in the province.
Recently, progress does appear to have been made on completing the Technical and Vocational Institute, a project that “aims to produce skilled manpower in different areas to [allow the local population to] take maximum advantage of CPEC linked opportunities. There will be concerns from locals that Pakistanis from other provinces will take advantage of these opportunities, and, as with the development of the free trade zone and the fishing processing center, benefits will not necessarily accrue to the local areas around Gwadar. In addition, the tension between securing the buy-in of local communities and the need to increase security is likely to remain, as was revealed in December 2020 by attempts, allegedly “at the behest of” Chinese actors according to some media accounts, to physically fence off parts of Gwadar.
How China and Pakistan Negotiate
Many observers view Pakistan as a test case for China’s assertive overseas expansion plans. But sometimes, it is Chinese players who have had to adapt to Islamabad’s realities.
carnegieendowment.org
ghazi52
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43 Chinese Firms all set to invest in Gwadar SEZ China Overseas Port Holding Company COPHC.
Zhang Baozhong, the chairman of China Overseas Ports Holding Company – the firm that operates Gwadar Port – has said that the first phase of the special economic zone under the China Pakistan Economic Corridor has been completed in which 43 Chinese companies are going to invest while 200 more firms have been registered for the purpose.
The chairman said that besides infrastructure and energy projects, various industries, including textiles, chemicals, automobiles and mobiles, would be set up in the Gwadar industrial zone, which will create more employment opportunities.
Baozhong rejected the reports circulating in the media about hindrances in the multibillion-dollar project, saying that work on CPEC is going on in full swing and there are no impediments as the “government of Pakistan is extending full cooperation”.
Zhang Baozhong, the chairman of China Overseas Ports Holding Company – the firm that operates Gwadar Port – has said that the first phase of the special economic zone under the China Pakistan Economic Corridor has been completed in which 43 Chinese companies are going to invest while 200 more firms have been registered for the purpose.
The chairman said that besides infrastructure and energy projects, various industries, including textiles, chemicals, automobiles and mobiles, would be set up in the Gwadar industrial zone, which will create more employment opportunities.
Baozhong rejected the reports circulating in the media about hindrances in the multibillion-dollar project, saying that work on CPEC is going on in full swing and there are no impediments as the “government of Pakistan is extending full cooperation”.
ghazi52
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PM Imran will visit Gwadar to review progress of CPEC projects: Asim Bajwa
Premier giving priority to CPEC and Gwadar Port, says Lt Gen (retd) Asim Saleem Bajwa
News Desk
July 03, 2021
Chairman China Pakistan Economic Corridor Authority, Lt Gen (R) Asim Saleem Bajwa.
CPEC Authority Chairperson Lt Gen (retd) Asim Saleem Bajwa on Saturday said Prime Minister Khan would visit Gwadar on Monday (July 5) to review the progress of projects related to the multi-billion dollar economic zone.
Briefing the media in Hoshab, the chairperson said the premier was giving priority to CPEC and the Gwadar Port.
"Construction work on road infrastructure projects has been accelerated in order to link Gwadar Port with the north of the country and the region," he said and added that all remote regions of the country need to be brought up on par with developed areas.
"This project will complete CPEC's route and the western route which touches the remotest regions of Pakistan."
The chairperson added that the completion of the South Balochistan project would not only allow people to benefit from CPEC and Gwadar Port but would also increase accessibility to Karachi. Bajwa elaborated that connectivity was one of the biggest issues for the people residing in the region.
However, he said, the projects have now been given priority for their completion in the South Balochistan development package.
"A network of roads, which is the dream of the people here, would be laid," he said. "There are about 80 ongoing schemes and around 200 schemes in this entire [development] package."
Addressing the issue of electricity supply in the region, he said the prime minister had approved the linking of the grid for which a grid station in Basima town of Washuk district would be constructed.
"Work on a power project in Gwadar, which would produce about 3,000MW of electricity, has also commenced," Bajwa added.
On June 1, the CPEC chair said the Gwadar Port and Gwadar Free Zone would generate economic activity of around $10 billion per annum, besides creating thousands of new jobs.
Bajwa said the port's infrastructural work had been completed by the China Port Holding Company at the cost of around $300 million, and all four berths were fully operational.
He had said that during the last few months, over 67,000 metric tons of cargo had been handled at the port, comprising consignments mostly under the Afghan Transit Trade Agreement, which were later transported to Afghanistan.
Premier giving priority to CPEC and Gwadar Port, says Lt Gen (retd) Asim Saleem Bajwa
News Desk
July 03, 2021
Chairman China Pakistan Economic Corridor Authority, Lt Gen (R) Asim Saleem Bajwa.
CPEC Authority Chairperson Lt Gen (retd) Asim Saleem Bajwa on Saturday said Prime Minister Khan would visit Gwadar on Monday (July 5) to review the progress of projects related to the multi-billion dollar economic zone.
Briefing the media in Hoshab, the chairperson said the premier was giving priority to CPEC and the Gwadar Port.
"Construction work on road infrastructure projects has been accelerated in order to link Gwadar Port with the north of the country and the region," he said and added that all remote regions of the country need to be brought up on par with developed areas.
"This project will complete CPEC's route and the western route which touches the remotest regions of Pakistan."
The chairperson added that the completion of the South Balochistan project would not only allow people to benefit from CPEC and Gwadar Port but would also increase accessibility to Karachi. Bajwa elaborated that connectivity was one of the biggest issues for the people residing in the region.
However, he said, the projects have now been given priority for their completion in the South Balochistan development package.
"A network of roads, which is the dream of the people here, would be laid," he said. "There are about 80 ongoing schemes and around 200 schemes in this entire [development] package."
Addressing the issue of electricity supply in the region, he said the prime minister had approved the linking of the grid for which a grid station in Basima town of Washuk district would be constructed.
"Work on a power project in Gwadar, which would produce about 3,000MW of electricity, has also commenced," Bajwa added.
On June 1, the CPEC chair said the Gwadar Port and Gwadar Free Zone would generate economic activity of around $10 billion per annum, besides creating thousands of new jobs.
Bajwa said the port's infrastructural work had been completed by the China Port Holding Company at the cost of around $300 million, and all four berths were fully operational.
He had said that during the last few months, over 67,000 metric tons of cargo had been handled at the port, comprising consignments mostly under the Afghan Transit Trade Agreement, which were later transported to Afghanistan.
ghazi52
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