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Guys!!! Is Pakistan in trouble regarding CPEC? Iran offers China

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Iran is not jealous from Pakistan, but Pakistan is jealous from Iran. Iran can provide safer route but Pakistan can't. It is the game of survival of the fittest. If you are unfit, you are out of the game. It has nothing got to do with; whether Iran is Pakistan's enemy or friend. Had Pakistan been in place of Iran, Pakistan would have been doing same as Iran doing now.

Pakistan is jealous from Iran? hehe....Pakistan safeguarded Iran's interest in yemen war. We even helped them in their nuclear program. What did Pakistan get? I tell you, Chabahar port was handed over to India. As soon as Pakistan handed over Gwadar port to China, iranians handed over their port to India. They are jealous of Gwadar port since beginning. They also had a hand in destabilizing Balochistan. This is called a slap on face. Pakistan always get fooled under Muslim brotherhood and look through Muslim eyes, on the other hand, country like Iran are bloody clever and don't give a shit for any country or Muslim brotherhood. Pakistan looks forward to new Iran and happy that sanctions comes to an end if only Iran behaves little nicer and respect Pakistan's interest. Pakistan is the only country where Iran is seen positively. We didn't get into Yemen. Can you say the same about Iran? the other way round? How Iran view us?

http://www.dawn.com/news/1190179

How iran can provide safer route given their own insurgency in irani seestan province? Pakistan has almost eliminated Baloch insurgency. It is dying now. Pakistan can and will provide safer route, iran may not need economic corridor as much as we need. This CPEC is must for our economy revival and we will go to any length to safeguard this project.

Welcome to the Iranian reality!! Turkey has been living with it for the last thousand years!!!

Seriously.....I must admire Turkish patience. If just Pak and Turkey had shared a border, how good it would be for us. I always dream that Pakistan to have land access to Turkey, now it can only be possible through iran. A hard reality with which we have to live. But our love for Turkey overcomes all our problems. Like, chill, so whats a big deal even if it passes thr' iran? after all, finally, our dream is coming true to go to Turkey in shortest, possible land route. I pray what this below article says to come true.....

:pakistan:
Turkey_120-animated-flag-gifs.gif


https://defence.pk/threads/istanbul-tehran-islamabad-passenger-train-on-cards.222568/

Biggest problem China faces is, that CPEC passes through a disputed area.

Tomorrow if a war breaks down between Indian and Pakistan and Line of Control changes (as has happened in previous India-Pakistan war), then entire 46 Billion investment will be down drain.

Cease fire line of 1948 Karachi agreement was altered in 1971, and the new areas captured by India in Kashmir and Line of control came into being after Shimla agreement.

Thats is why China has been pushing Pakistan settle LOC with India into International border and to make GB a province of Pakistan.

But if Pakistan does that, it violates UN resolutions and losses claim to rest of the Kashmir.

Hence the Pakistani dilemma.

GB is not part of Kashmir. It only shares border with Disputed land Kashmir. Corridor will pass thr' GB not Kashmir

You have to consider the benefits and risks from both Chinese as well as Pakistan's perspective

If CPEC fails China would fallback on the Iranian, Myanmar and Thai corridors but from Pakistan's perspective you would have a huge loan & interest to pay back with no new revenue generation. How is Pakistan planning it's risk mitigation? The answer is in the resolution of Kashmir issue with India. Now I know many here would not like it.

CPEC will pass thr' GB not thr' Kashmir. GB is not disputed but Kashmir is
 
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All the things have already discussed on this thread. You should go back and read the posts before asking questions


Negatives for CPEC:
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1) Need to go through disputed territory of Kashmir

2) Prone to be adversely impacted by spill over of insurgency from Afghanistan

3) Pakistan does not produce/sell Oil & Gas to China

4) All investment risks are shared by China

5) Prone to US/Saudia influence


Positives for Iran:
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1) Free from US/Saudia influence

2) Infrastructure already exists

3) Syria, Iraq, Iran, Turkmenistan and Kazakhstan produce & sell Oil & Gas

4) India, China & Russia plan to use this corridor hence the risk is being shared

5) Due to economies of scale RIO for investors is better

6) The participating countries get better revenues due to higher volume and transit fee

7) China could increase it's influence in more countries. Turkmenistan may join SCO.
Iam praying positive for Iranian interest more than you many many FOLDS....WHY...Bcoz it'll checkmate Indian Interest in Chahbahar (or afhan affairs)......But matter of fact is that.....Sincerely....a) There is NO direct link b/t China & Iran.....even you employ Tarek Fateh to produce a Map where China is shown Adjacent to iranian territory....He Wont b) Thanks for your above Yearnings but You brought your above Scientific Postulates ....too late....Contracts are signed Penalties are adjusted c) Is that difficult for you to comprehend...Trades are done on the basis of Demand & Supply not on Iranins are good and others are bad ....Let's take a Scenario....there is a demand from Iran to Chinese factory to deliver 5000 Bags Immediately....But Chinese factory pack Container to its full lets say 7000 Bags......On his return from Iran....Same Chinese Container will decide to pass from Pakistani Areas in a hope to sell its remaining Bags of 2000....Do you think it is IMPOSSIBLE for them to sell his entire INVENTORY? d) China and Pakistan are trading by CPEC for many many decades since Ayub Era when we both constructed Silk Road by paving the Karakoram mountains ....At that time....you people were taking a Big Nap.....NOW why all of sudden ..making noise like a toddler .? why why why
 
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Well many comments dont mention about gwadar being a naval base for China and moreover any government in Pakistan will never spoil Chinese mood as they know that China is the best and only reliable friend Pakistan have
 
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Well many comments dont mention about gwadar being a naval base for China and moreover any government in Pakistan will never spoil Chinese mood as they know that China is the best and only reliable friend Pakistan have
When we demand them to establish Naval bases in Gwadar....same good weahter ally go disappear.... or causelessly try to hide their red faces in Coat/Jackets....and become deaf infront of Western Journalist.....:lol:
@Chinese-Dragon ...Is that assumption is not Justified or you will answer me same like this smiley :close_tema:
 
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When we demand them to establish Naval bases in Gwadar....same good weahter ally go disappear.... or causelessly try to hide their red faces in Coat/Jackets....and become deaf infront of Western Journalist.....:lol:
@Chinese-Dragon ...Is that assumption is not Justified or you will answer me same like this smiley :close_tema:

I didn't get what you said.....

@Nihonjin1051 Would you like to put your input on this? Thanks.
 
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I didn't get what you said.....

@Nihonjin1051 Would you like to put your input on this? Thanks.
When Wstern Media ask about that part of an Alliance....to establish Naval bases in Gwadar then all of sudden..Chinese foreign ministry go in Sixes & Seven or prefer to keep silent for some unknown reasons ...maybe they dont want themselves to portray as Expansionist.... even i dont know why...because they prefer to keep silent on that issue

http://www.dawn.com/news/630700/china-agrees-to-run-gwadar-port
http://tribune.com.pk/story/174913/china-says-it-is-unaware-of-gwadar-port-proposal/
http://www.ft.com/cms/s/0/3914bd36-8467-11e0-afcb-00144feabdc0.html

then on Mainstream media they poses different stance

http://www.pakistantoday.com.pk/2011/05/25/national/china-unaware-of-gwadar-naval-base-proposal/

China’s Foreign Ministry on Tuesday said it was unaware of a request by Pakistan to Beijing for help in building a naval base at its deep-sea port of Gwadar, strategically located on the Arabian Sea. Defence Minister Ahmad Mukhtar, who accompanied Prime Minister Yousaf Raza Gilani on a visit to China last week, said the proposal had been made during the trip, which highlighted the neighbours’ close ties.
“I haven’t heard of this project. As far as I know this subject was not brought up during the visit last week” by Gilani, Chinese Foreign Ministry spokeswoman Jiang Yu told reporters. China provided about 75 percent of the initial $250 million in funding for the construction of Gwadar port.
It is currently operated by Singapore’s PSA International. Mukhtar said China had agreed to take over port operations, without offering a timetable, adding Islamabad would be “more grateful to the Chinese government if a naval base was being constructed at the site of Gwadar for Pakistan.”
 
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When we demand them to establish Naval bases in Gwadar....same good weahter ally go disappear.... or causelessly try to hide their red faces in Coat/Jackets....and become deaf infront of Western Journalist.....:lol:
@Chinese-Dragon ...Is that assumption is not Justified or you will answer me same like this smiley :close_tema:
few things are done quietly and this is one of them....:)
 
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Iran is not jealous from Pakistan, but Pakistan is jealous from Iran. Iran can provide safer route but Pakistan can't. It is the game of survival of the fittest. If you are unfit, you are out of the game. It has nothing got to do with; whether Iran is Pakistan's enemy or friend. Had Pakistan been in place of Iran, Pakistan would have been doing same as Iran doing now.
Wrong analogy my friend.

China mulling trade route with Iran as Pak leadership bickers

National
15 hours ago BY Mian Abrar

  • Iranian president says there’s only 36km difference between Gwadar and Chabahar Port; Iran would provide safer route to Chinese shipments
  • Ahsan Iqbal says Chinese investors might opt for other countries if Pakistan fails to resolve domestic issues
While political parties and provincial governments continue to squabble for a bigger pie of the China-Pakistan Economic Corridor (CPEC), China is seriously mulling a new trade route linking Xinjiang province with Iran’s Chabahar Port bypassing Pakistan, Pakistan Today has learnt reliably.

During the recent landmark visit of Chinese President Xi Jinping to Tehran, the two countries agreed to enhance cooperation including in fossil and renewable energy, transportation, railways, ports, industry, commerce and services.

China, along with the United States, Britain, France, Germany and Russia, was among the countries that reached the agreement with Iran in July to curtail its nuclear activities in exchange for ending international sanctions.

Media reports said China has committed an immediate injection of $51 billion into Iran, vowing to enhance bilateral trade to the tone of $600 billion in the next 10 years. This would almost match China’s immediate investment in Pakistan under the ambitious CPEC project.

A well-placed source in the federal government told Pakistan Today that intelligence reports submitted to Prime Minister Nawaz Sharif have warned him about the offer made by Iran.

“During the meeting with President Xi Jinping, Iranian President Hassan Rouhani asked his Chinese counterpart to adopt Chabahar Port rather than Gwadar which would be linked to a secure, beneficial trade route including a pipeline linking Iran and China,” the source said.

“The Iranian president said that there was a difference of only 36 kilometres between Gwadar and Chabahar but Iran would provide a route to Chinese shipments that was safer than Pakistan,” the source added.

The source said that the Iranian leadership gave President Xi Jinping a detailed briefing on its offer, detailing various possible routes from China to Chabahar.

“Moreover, Iran offered provide complete national unity and harmony unlike Pakistan where trade route is unsafe and it also lacks national unity,” the source quoted the intelligence reports.

The source said that national harmony and unity are two words very near and dear to the heart of the Chinese government and it is already concerned about the prospects of the CPEC due to instability and the scourge of terrorism that poses a major threat to the economic corridor.

It is pertinent to mention here that political bickering is increasing among the four provinces of Pakistan. Politicians are all trying to get major chunk out of the CPEC funding. Observers and analysts blame mishandling by the federal government for widespread concern over what they call an uneven distribution of resources among the four provinces.

According to the plan, not only has the Punjab government won the trade route, a major chunk of development and energy projects are being established in central Punjab, which have triggered a debate over the route.

“The Chinese government is largely concerned over the handling of the CPEC. They are unhappy over the fact that the federal and Punjab governments are only interested in energy projects, which the Sharif family wants to be completed before time. But no focus is being laid over the route construction and evolving harmony and unity over the trade route,” the source said.

The source added that China had already completed its part of the trade corridor but Pakistani government was way behind vis-à-vis completion of trade route on its side of the border.

The source said even the military leadership was also unhappy with the handling of the CPEC by the federal government.

“Everything in CPEC is being handled by the close relatives of the prime minister. Even federal ministers are kept out of the loop,” the source said, adding that it was a major reason that while the chief ministers of Khyber Pakhtunkhwa and Sindh were asking for more shares, none of the federal ministers known for their strong loyalty to Sharifs come forward to defend the CPEC.

When contacted, Planning and Development Minister Ahsan Iqbal said that Iran had already shared its plans for establishing its own corridor with China.

“Yes, they are working on it. In his recent visit to Islamabad, Iranian Foreign Minister Javad Zarif had also informed Pakistan about his government’s plans to develop a trade corridor linking Iran and China,” he added.

Iqbal said it was a world of competition and every country has the right to vie for its own advantages.

Asked whether the government feels threatened by the growing interest of China in the Iranian corridor, Ahsan Iqbal said that Pakistan does not feel threatened by Chabahar Port.

“Look, Gwadar provides the best solution to trade ambitions of China. But we have to resolve our problems very fast. Our politicians need to understand that if we keep fighting on shares, entire Pakistan can lose the benefits of CPEC,” he added.

Asked whether there were any chances that China might scrap CPEC for Chabahar, Ahsan Iqbal said China was a time-tested friend and it would never leave Pakistan in the lurch.

“The Chinese government would never leave Pakistan. But if we don’t resolve our differences, Chinese investors might opt for other countries rather than investing in Pakistan,” he added.

Tong Liang, a Chinese journalist based in Islamabad and covering the CPEC, was also of the opinion that there is no alternative to CPEC for Chinese government.

‎”Without any claim of authority as representing a Chinese official, I believe that no alternative of CPEC can be found. CPEC is not a transit corridor that can be replaced by any route that reaches the sea, it is an economic corridor that aims at boosting Pakistan’s development as a modern and industrialised country,” Tong said.

http://www.pakistantoday.com.pk/201...de-route-with-iran-as-pak-leadership-bickers/

All Pakistani members and Chinese members!!! Your thoughts on this??? Not trying to influence any of your say but in my opinion, Iran can never be true friend of Pakistan...if others can tag some senior members on this thread, it would be very kind of them so that we can have their opinion on this
My Persian friend always tells me, Don't trust Iranian. He said Iranian don't trust each other either. lolz.
 
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Iran offer China for CPEC but how? over the air space of Afghanistan or Pakistan?
 
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Pakistan is jealous from Iran? hehe....Pakistan safeguarded Iran's interest in yemen war. We even helped them in their nuclear program. What did Pakistan get? I tell you, Chabahar port was handed over to India. As soon as Pakistan handed over Gwadar port to China, iranians handed over their port to India. They are jealous of Gwadar port since beginning. They also had a hand in destabilizing Balochistan. This is called a slap on face. Pakistan always get fooled under Muslim brotherhood and look through Muslim eyes, on the other hand, country like Iran are bloody clever and don't give a shit for any country or Muslim brotherhood. Pakistan looks forward to new Iran and happy that sanctions comes to an end if only Iran behaves little nicer and respect Pakistan's interest. Pakistan is the only country where Iran is seen positively. We didn't get into Yemen. Can you say the same about Iran? the other way round? How Iran view us?

http://www.dawn.com/news/1190179

How iran can provide safer route given their own insurgency in irani seestan province? Pakistan has almost eliminated Baloch insurgency. It is dying now. Pakistan can and will provide safer route, iran may not need economic corridor as much as we need. This CPEC is must for our economy revival and we will go to any length to safeguard this project.

Don't be blind folded. Jealousy is natural. Swap the names of Pakistan and Iran with each other. Iran has Gwadar port. What will Pakistan do? Obviously to counter threat from Iran and to maintain its national interest , it will establish Chabahar port. How it is aganst Muslim Brother hood? National interest and Democracy has nothing got to do with religion, cast, creed, color , race etc. Stop bringing these stereotypes. Pakistan and Iran are both contestants of international arena. Both have to compete with each other. It is the game of survival of fittest. If you are unfit you are out of the game. Your own national interest come first and it doesn't matter whether your national interests are threat to your neighbors or not; even the neighbor is Muslim country next to your door.

There is an old saying.; Do right deeds and forget. Never expect in return. As far Muslim brotherhood is concern. Iran is way better than any Muslim countries present. They have the audacity to stand in front USA and Israel. Iran vehemently support Kashmiris and Palestine. When does KSA speak for Kashmiris and Palestine or even against Israel? If according to you Iran is shaking hand with India; Pak's enemy, then What PAK is doing? Shaking hand with Iran's enemy USA and KSA. If Iran is supporting insurgency in Balochistan then KSA is funding terrorists in Pakistan.

The article is imprudently written.Because of political, national and geographical interest China will never abandon Pakistan. I believe CPEC will be the primary route and Iran-China will be secondary; to diminish India's influence on Iran.
 
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When Wstern Media ask about that part of an Alliance....to establish Naval bases in Gwadar then all of sudden..Chinese foreign ministry go in Sixes & Seven or prefer to keep silent for some unknown reasons ...maybe they dont want themselves to portray as Expansionist.... even i dont know why...because they prefer to keep silent on that issue

http://www.dawn.com/news/630700/china-agrees-to-run-gwadar-port
http://tribune.com.pk/story/174913/china-says-it-is-unaware-of-gwadar-port-proposal/
http://www.ft.com/cms/s/0/3914bd36-8467-11e0-afcb-00144feabdc0.html

then on Mainstream media they poses different stance

http://www.pakistantoday.com.pk/2011/05/25/national/china-unaware-of-gwadar-naval-base-proposal/

China’s Foreign Ministry on Tuesday said it was unaware of a request by Pakistan to Beijing for help in building a naval base at its deep-sea port of Gwadar, strategically located on the Arabian Sea. Defence Minister Ahmad Mukhtar, who accompanied Prime Minister Yousaf Raza Gilani on a visit to China last week, said the proposal had been made during the trip, which highlighted the neighbours’ close ties.
“I haven’t heard of this project. As far as I know this subject was not brought up during the visit last week” by Gilani, Chinese Foreign Ministry spokeswoman Jiang Yu told reporters. China provided about 75 percent of the initial $250 million in funding for the construction of Gwadar port.
It is currently operated by Singapore’s PSA International. Mukhtar said China had agreed to take over port operations, without offering a timetable, adding Islamabad would be “more grateful to the Chinese government if a naval base was being constructed at the site of Gwadar for Pakistan.”

If things turn ugly then Chinese will definitely build naval base there.......Gwadar is idealized as city like Dubai not some naval base to scare away investors. Let the gwadar build first then we'll see.

Pakistanis trust China and ready to give all their help to our Chinese brethren to ensure peace and stability in region and beyond. People/countries are jealous from this friendship since beginning and they will be in future too.

Wrong analogy my friend.


My Persian friend always tells me, Don't trust Iranian. He said Iranian don't trust each other either. lolz.

Pakistan needs to evaluate and assess the post sanction Iran.....what impact they can possibly cause on Pakistan and its interests. Pakistan should set its priorities straight and simple.
 
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Too many Indian butt-hurts on this thread who are not in any mood to wake up and smell the coffee.
 
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Would you also care to elaborate on the CPEC risks Vs "Alternate route" risks and the CPEC rewards Vs "Alternate route" rewards?

With your alternative route China will be dealing with 4 times the distance, political distractions from 4 different countries (none of whom are as pro-China as Pakistan is) and, God knows, how much added costs.

Pakistan's blocking of Nato's route and the resulting cost increases (fuel) and supply shortages (diapers, food, etc.) suffered by the coalition forces in Afghanistan would make a good case study for you to understand what your proposed alternative route holds vis-a-vis CPEC.



You have already built the alternate route and started masturbating to it. Do you see the added cost (fixed and running) on that alternate route? Homework for you: Think about what China's main goal is with regards to CPEC, then try to realize how the classic silk route would destroy that aim. But the funny bit is that your own map shows CPEC as the main route.



Do you know the purpose of that proposed route? Does it have anything to do with what the CPEC is for? Would you like to read on it?

http://www.china-briefing.com/news/2015/01/15/chinas-proposed-new-silk-road-free-trade-area.html




Maybe because that map is of the routes assumed to have been in use in Babylonian times (literally)? Only a few thousand years ago? You know, the times when people could not cross the Karakoram mountains into the then Indus Valley? Wonder why it doesn't show CPEC in it.....

http://archive.silkroadproject.org/tabid/177/defaul.aspx

Cmon, you can surely do better than these pathetic attempts....



That must be some special tea you've been drinking.....

That short cut trade route is the primary aim of China with regards to CPEC. Bypassing Pakistan not only involves far greater risks for China but also increases the fixed and running costs of the route many-folds, which completely defeats the purpose of building a new trade corridor.

Do you know the optimal route connecting China with Chabahar? It's CPEC :lol:



China didn't care jack-squat about Indian "claims" on Gilgit-Baltistan when they first helped us build that route nor do they now having expanded it only a couple of years ago for CPEC. And this was despite all the Indian hue and cry.



This alternative route is the stupidest idea if there ever was such a thing. The economic trade-off alone between the two is hilarious. Guess which route is the safest and the most economical for China to trade with Afghanistan and/or Iran?



I was wrong. This is the stupidest idea ever. So your saying that China would build roads and infrastructure all across Pakistan, spending billions of dollars, right till the doorstep of the middle east and then leave it just like that only to then build another route 4 to 5 times longer, many more times costlier and even more riskier, to trade with the middle east? Bravo....Chabahar Vs Gawadar will give China a 4:1 cost at the very least. "Undo all the profits gained in gawadar" :lol:

Furthermore China is already well set in Central Asia, it is only an Indian wet dream that anyone can displace them from there.



HAHAHAHAHA that cracked me up!



You do know that you're arguing with a person who a) has no idea what he's talking about and/or b) is desperately trying to sooth his anxiety over the CPEC's inevitable success.


On Topic:

The optimal route (some would argue the only feasible route) that China has to Chabahar/Iran is through Pakistan. It provides both China and Iran the safest, fastest, politically dependable and most economical trade route possible. So wish all you must, even if China for some completely ludicrous reason does shift from Gawadar to Chabahar all the trade will still be flowing through Pakistan.

While CPEC's main goal is to drastically reduce China's trade cost and time with the Middle East and Europe its secondary aim would see it bring the Afghan and Iranian markets to China's doorstep. The tertiary aim would then see the CPEC provide the landlocked Central Asian states (already connected to the KKH) the fastest, safest and most economical route to warm waters transforming the route itself into an economically profitable venture for both Pakistan and China. Then there's that little quaternary aim that will see the route strengthening the economy of China's strongest strategic and military ally in the world. It's natural and inevitable.

Add to all that the fact that 50% of the required infrastructure (road, rail, etc.) already existed in Pakistan even before the announcement of CPEC, then the fact that since the route's announcement billions have already been spent and are being spent on it and lastly the fact that Pakistan and China hold a degree of trust spawning from decades in pursuit of overwhelming mutual strategic goals that no other country on any other alternate route can match (the trust and the mutual strategic goals) and you just might be able to understand that there is no other possible route for China. The non-CPEC related Chinese investments in Pakistan alone show how heavily China is invested in Pakistan and won't be backing away any time soon.

Thanks for such in depth analysis....:tup:

Trade with Iran is not the same as having access to Iran's ports. What Iran is suggesting, either China would have to completely bypass Afghanistan, or go through it, increasing costs (both ways), completely missing the point of such a project to begin with.

Not to mention, If China goes through Afghanistan, it'll be FAR more dangerous for them. At least Pakistan is cleaning up the mess in it's country (it's slow, but it is happening), Afghanistan can't say the same.

Iran-China_Map_Asia_Global_Location_Relation.jpg



Pakistan offers a direct route to Pakistan's ports, both Karachi and Gwadar...

China-Pakistan-Economic-Corridor-Western-Route-Map.jpg


Plus, the Chinese have other motives, such as stabilizing their western border. As long as Pakistan is deal with an insurgency, terrorism will be a concern for China. This is one of the biggest reasons why China is investing so heavily in Pakistan, and in particular Baluchistan.

No, this article is dumb. Trade with Iran doesn't equate to access to ports of Iran. Besides, a lot of the work is already on it's way to completion, why would the Chinese stop half way?

[Edit]: Another few things I would like to add...

First, India is already heavily involved with Chabahar, which is a put off for China.

Next, this part of the article pretty much negates everything previously said within the article...



[Edit 2]: As for trade volume and value. The deal between Iran and China is for the next 10 to 25 years. Pakistan is set to out pace Iran's economy within the next 35 years, and completely dwarf Iran's economy within the next 50 to 60 years. If there is one thing the Chinese are good at, it's looking ahead. https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf

Enjoyed your post.....:enjoy:
 
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It's actually a policy of China Iran Pakistan to cut India from Chabahar plan, China will go with Pakistan as per plan and start with Iran for another route SO " Sayonara " India:coffee:

India's main target is Russia not Afghanistan or Central asia while China target is to reach Iran/Iraq/Syria/ME.

Currently India uses Bandar Abbas which very conjusted and hence developing Chabahar. The infrastructure for Indo-Russia trade already exists. You think China would poke it's nose into Indo-Russian trade? on the contrary they would join India & Russia to make it more successful.


upload_2016-2-1_7-22-32.png



Bandar Abbas
upload_2016-2-1_7-23-46.png



Chabahar
upload_2016-2-1_7-24-27.png


Bereket Railway Station (Turkmenistan)
upload_2016-2-1_7-29-24.png


Iam praying positive for Iranian interest more than you many many FOLDS....WHY...Bcoz it'll checkmate Indian Interest in Chahbahar (or afhan affairs)......But matter of fact is that.....Sincerely....a) There is NO direct link b/t China & Iran.....even you employ Tarek Fateh to produce a Map where China is shown Adjacent to iranian territory....He Wont b) Thanks for your above Yearnings but You brought your above Scientific Postulates ....too late....Contracts are signed Penalties are adjusted c) Is that difficult for you to comprehend...Trades are done on the basis of Demand & Supply not on Iranins are good and others are bad ....Let's take a Scenario....there is a demand from Iran to Chinese factory to deliver 5000 Bags Immediately....But Chinese factory pack Container to its full lets say 7000 Bags......On his return from Iran....Same Chinese Container will decide to pass from Pakistani Areas in a hope to sell its remaining Bags of 2000....Do you think it is IMPOSSIBLE for them to sell his entire INVENTORY? d) China and Pakistan are trading by CPEC for many many decades since Ayub Era when we both constructed Silk Road by paving the Karakoram mountains ....At that time....you people were taking a Big Nap.....NOW why all of sudden ..making noise like a toddler .? why why why


I am pretty sure with Iranian route picking up speed, the western route in CPEC would have to be dumped as it would no longer be financially viable. Only the eastern route may a financial viability due to existing infrastructure to Karachi. You just need to extend it from Karachi to Gwadar.

CPEC projects: status, cost and benefits
Engr Hussain Ahmad Siddiqui — Updated Jul 13, 2015 08:51am


55a33568dc2dc.jpg
The Silk Road Fund Co. Ltd was established in China last December to extend investment and financing support to CPEC projects and to promote industrial cooperation with Pakistan. ─ Photo credit: Planning Commission of Pakistan
The implementation of the energy and infrastructure projects identified under the China-Pakistan Economic Corridor is being done on a fast-track basis on both sides to translate the plans into reality.

The Silk Road Fund Co. Ltd was established in China last December to extend investment and financing support to CPEC projects and to promote industrial cooperation with Pakistan.

The fund management company — set up as a consortium of leading Chinese banks, including the China Exim Bank and the China Development Bank — had initial funds of $10bn, which have now been raised to $40bn.

Read: Pakistan will continue implementation of CPEC project: FO

The pioneering project to be implemented under the programme is the 720MW Karot hydropower project, for which $1.65bn has been earmarked by the Silk Road Fund, and the down payment is under release.

The Fund has already signed an MoU with China’s Three Gorges Corporation and the Private Power and Infrastructure Board (PPIB) to develop a number of private hydropower projects, including Karot, which was approved last month by the PPIB’s board of directors. The PPIB has already issued the letter of support (LoS), and land acquisition is in process.

The ambitious CPEC programme has two main components. It plans to develop a new trade and transport route from Kashgar in China to the Gwadar Port. The other component envisages developing special economic zones along the route, including power projects. The first-phase projects will receive $45.69bn in concessionary and commercial loans, for which financial facilitation to the Chinese companies is being arranged by the Silk Road Fund.

These include $33.79bn for energy projects, $5.9bn for roads, $3.69bn for railway network, $1.6bn for Lahore Mass Transit, $66m for Gwadar Port and a fibre optic project worth $4m.

The prioritised, short-term projects involve over $17bn in investment. Apart from Karot, they include the upgrading of the 1,681km Peshawar-Lahore-Karachi railway line ($3.7bn); Thar coal-fired power plants worth 1,980MW ($2.8bn); development of two Thar coal mining blocks ($2.2bn); the Gwadar-Nawabshah natural gas pipeline ($2bn); imported coal-based power plants at Port Qasim worth 1,320MW ($2bn); a solar park in Bahawalpur worth 900MW ($1.3bn); the Havelian-Islamabad link of the Karakoram Highway ($930m); a wind farm at Jhimpir for 260MW ($260m); and the Gwadar International Airport ($230m).

The Sindh Engro Coal Mining Company, a joint venture of Engro Powergen Ltd and the Sindh government, holds the lease of Thar Block-II coalfields, while it’s Thar Power Company will construct a series of mine-mouth power plants.

Given the timeline for completion, these power projects could possibly add reasonable generation capacity by 2017-18, but they would hardly provide any relief to the nation in terms of the fast-growing demand for electricity
In May, the PPIB concluded the implementation and the power purchase agreements for two 330MW projects, which are scheduled to begin commercial operations by December 2017. And the China Development Bank has finalised the terms and conditions for financing a 3.8m tonnes per annum coal-mining project as well as a power project.

On June 25, the PPIB approved another Thar coal-based mine-mouth power project of 1,320MW capacity, which is being developed by the Shanghai Electric (Group) Corporation in partnership with Sino-Sindh Resources, a subsidiary of Global Mining (China) Ltd.

Sino-Sindh Resources will receive $1bn from the Industrial and Commercial Bank of China. The mine-mouth power project, originally planned to start power generation in 2016, has been rescheduled for commissioning by 2017-18. A letter of interest from the Chinese banks was issued in March for 75pc financing of the $2.6bn project, 25pc of which will be equity.

In addition, Chinese banks will provide financing for two 660MW imported coal-fired power plants at Port Qasim.

A financing cooperation agreement was recently signed by the China Exim Bank and the Port Qasim Electric Power Company for the under-construction project. The National Electric Power Regulatory Authority approved the upfront tariff on February 13.

The other 660MW project at Port Qasim is being developed by the Lucky Electric Power Company. The two projects are scheduled to begin commercial operations within four years. But they are likely to be delayed as a dedicated jetty for each project has to be constructed for unloading the imported coal, and the contracts for them have not yet been awarded.

Meanwhile, the Punjab government has leased 4,500 acres of land to Chinese investors for the development of the second phase of the Quaid-e-Azam Solar Park of 900MW, to be commissioned in 21 months. The China Development Bank, Exim Bank of China and Zonergy Co Ltd will be involved in it.

Likewise, the draw-down agreement for the Jhimpir wind project between UEP Wind Power (the borrower) and the China Development Bank Corporation (the lender) has been concluded. The project, having achieved financial close, is scheduled to begin commercial operations in 2016.

Given the timeline for completion, these power projects could possibly add reasonable generation capacity to the national grid by 2017-18, but they would hardly provide any relief to the nation in terms of the fast-growing demand for electricity. And there is no silver lining for consumers as far as the cost of the electricity is concerned.

All the Chinese loans will be insured by the China Export and Credit Insurance Corporation (Sinosure) against non-payment risks, and the security of the loans is guaranteed by the state.

A framework agreement for energy projects under CPEC was recently signed between Sinosure and the water and power ministry to provide sovereign guarantees.

Sinosure is charging a fee of 7pc for debt servicing, which will be added to the capital cost of a project. For instance, the capital cost of a 660MW project at Port Qasim is $767.9m. But it goes up to $956.1m by adding Sinosure’s fee of $63.9m, its financing fee and charges of $21m, and interest during construction of $72.8m; a 27.2pc return on equity is guaranteed.

Ironically, interest during construction is allowed at the rate of 33.33pc for the first year; 33.33pc for the second; 13.33pc for the third; and 20pc for the fourth year. The scenario presents a bleak picture, as the availability of affordable energy will likely remain a pipedream.

The writer is a retired chairman of the State Engineering Corporation, Ministry of Industries and Production

Published in Dawn, Economic & Business ,July 13th, 2015

http://www.dawn.com/news/1194014

 
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