BHarwana
MODERATOR
![](/styles/default/xenforo/ranks/General.jpg)
- Joined
- Sep 24, 2016
- Messages
- 24,825
- Reaction score
- 20
- Country
- Location
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
I think previous power projects in IPP model resulted in lot of circular debt
Thats a good move to reduce govt debt.
But govt has to ensure that under IPP the private partner is Pakistan based company and not some Chinese company.
China would like to have it under chinese company, so that it gets hold in the market and local competition could build around in near future. Also this gives more business to chinese companeis and a model to earn long term revune from market outside china.
I think previous power projects in IPP model resulted in lot of circular debt
Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed at an interest rate of 1.6%,after Pakistan successfully lobbied the Chinese government to reduce interest rates from an initial 3%. Loans will be dispersed by the Exim Bank of China, China Development Bank, and the ICBC.No You Don't Get It There Was Never Any Debt In The First Place.This Myth Was Used To Misguide People.
Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed at an interest rate of 1.6%,after Pakistan successfully lobbied the Chinese government to reduce interest rates from an initial 3%. Loans will be dispersed by the Exim Bank of China, China Development Bank, and the ICBC.
$15.5 billion worth of energy projects are to be constructed by joint Chinese-Pakistani firms, rather than by the governments of either China or Pakistan. The Exim Bank of China will finance those investments at 5–6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from those firms at pre-negotiated rates.
Some of the motorways and expressways under CPEC are financed by ADB
Source: https://en.wikipedia.org/wiki/China–Pakistan_Economic_Corridor#Finance
No money comes for free, there is always some other other strings attached.
Ya.. contractually obliged to purchase electricity from those firms at pre-negotiated rates probably does sound as bad a debt trap. Debt do end with payment of capital+interest. But an contractually obliged to purchase electricity from those firms at pre-negotiated rates without end dates is life long payout..I Am Talking About The Power Projects There Was Never Any Debt In The Books Of Govt. Ab Samjhi
Ya.. contractually obliged to purchase electricity from those firms at pre-negotiated rates probably does sound as bad a debt trap. Debt do end with payment of capital+interest. But an contractually obliged to purchase electricity from those firms at pre-negotiated rates without end dates is life long payout..
Kaas app samaj jaate...