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Many CPEC projects in doldrums NHA financial crisis: Cheques worth over Rs5 billion bounced

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Many CPEC projects in doldrums as NHA faces financial crisis

Syed Irfan RazaJuly 23, 2018
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ISLAMABAD: A number of road projects related to the $52 billion China-Pakistan Economic Corridor (CPEC) are said to be in doldrums as the National Highway Authority (NHA) faces financial crisis.

Sources told Dawn that contractors have stopped work on several CPEC projects after their cheques worth over Rs5 billion had bounced a couple of days ago.

It is for the first time that CPEC projects faced such a situation because of financial reasons.

The projects which have been hit by the situation include Hakla-Dera Ismail Khan, Western Route of CPEC and all sections of Karachi-Lahore Motorway (KLM).

ARTICLE CONTINUES AFTER AD
According to the sources, seven packages of Hakla-DIK measuring 400km roads all projects of KLM have been affected.

The firms whose cheques have bounced include SKB, ZKB, Noman Construction, ACGC Chinese, Sardar Ashraf D Baloch, China Railway 17 Group and Matracon.

The sources said that not only the CPEC projects but local industries related to construction and a large workforce of engineers and labourers have also been hit by the situation.

When contacted, NHA spokesman Kashif Zaman said the authority issued cheques of Rs5bn on June 29 to the firms against the sanction by the government.

He said cheques worth Rs1.5bn were cleared by the same day and “the remaining cheques that were deposited the next day could not be cleared”.

Mr Zaman said the matter had been taken up with the government and hopefully it would be resolved soon.

When asked about suspension of work by the contractors, he said: “The progress on the project had not been affected. Same is true for Hazara Motorway and other sections.”

He said most of the projects in question would be completed by December 2018.

However, it has been learnt that the CPEC projects would be delayed further if the situation continues and outstanding dues of contractors are not paid.

Published in Dawn, July 23rd, 2018

For more live updates, follow Dawn.com's official news Instagram account @dawn.today
 
I'm sorry to know it. I hope Pakistan arranges money from somewhere immediately to pay these contractors. The development work should continue.

May be fatf measures are kicking in now.
As far as I know, FATF wants to stop the money laundering to terrorists in Pakistan. They don't want to stop the development projects?
 
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What an idiotic article and no wonder it is coming from dawn. This has clearly to do with lack of proper governance at the moment. As soon as new govt will be installed such things will be sorted out itself. Everything is almost at halt because of elections.
 
It is important to note,not a single container from China reached Gwadar via land route after Raheel shareef formally announced beginning of trade in 2016.
 
Many CPEC projects in doldrums as NHA faces financial crisis

Syed Irfan RazaJuly 23, 2018
Facebook Count2
Twitter Share
0
ISLAMABAD: A number of road projects related to the $52 billion China-Pakistan Economic Corridor (CPEC) are said to be in doldrums as the National Highway Authority (NHA) faces financial crisis.

Sources told Dawn that contractors have stopped work on several CPEC projects after their cheques worth over Rs5 billion had bounced a couple of days ago.

It is for the first time that CPEC projects faced such a situation because of financial reasons.

The projects which have been hit by the situation include Hakla-Dera Ismail Khan, Western Route of CPEC and all sections of Karachi-Lahore Motorway (KLM).

ARTICLE CONTINUES AFTER AD
According to the sources, seven packages of Hakla-DIK measuring 400km roads all projects of KLM have been affected.

The firms whose cheques have bounced include SKB, ZKB, Noman Construction, ACGC Chinese, Sardar Ashraf D Baloch, China Railway 17 Group and Matracon.

The sources said that not only the CPEC projects but local industries related to construction and a large workforce of engineers and labourers have also been hit by the situation.

When contacted, NHA spokesman Kashif Zaman said the authority issued cheques of Rs5bn on June 29 to the firms against the sanction by the government.

He said cheques worth Rs1.5bn were cleared by the same day and “the remaining cheques that were deposited the next day could not be cleared”.

Mr Zaman said the matter had been taken up with the government and hopefully it would be resolved soon.

When asked about suspension of work by the contractors, he said: “The progress on the project had not been affected. Same is true for Hazara Motorway and other sections.”

He said most of the projects in question would be completed by December 2018.

However, it has been learnt that the CPEC projects would be delayed further if the situation continues and outstanding dues of contractors are not paid.

Published in Dawn, July 23rd, 2018

For more live updates, follow Dawn.com's official news Instagram account @dawn.today




Lol........I am pretty certain that this is the SAME guy who said back in 1995/96 that it is IMPOSSIBLE for Pakistan to EVER become a nuclear weapons state with or without Chinese assistance. That it is a delusional fantasy. What this guy says or believes in, the opposite is usually true.
 
It is important to note,not a single container from China reached Gwadar via land route after Raheel shareef formally announced beginning of trade in 2016.

Brilliant insight. I guess all the efforts of Pak and China are totally wasted. You and your countrymen can relax now.
 
What i said was correct. 2 years back, Pakistanis r expecting billions of dollars in Toll charges.
That again shows your stupidity . Do you know 7 special economic zones are being established all over Pakistan as part of CPEC, thats where the money will come from. Why dont you read a little about CPEC before embarrassing yourself and your countrymen.

It is important to note,not a single container from China reached Gwadar via land route after Raheel shareef formally announced beginning of trade in 2016.

That is also untrue. People like you on this forum define what illiteracy means and what effect cow urine has on IQ.

First CPEC cargo shipment launched from Gwadar Port ( http://dunyanews.tv/en/Pakistan/360777-First-CPEC-cargo-shipment-launched-from-Gwadar-Por )

Another Chinese cargo ship anchors in Gwadar Port
The first trade convoy carrying goods for export through the western route of China Pakistan Economic Corridor arrived at Gwadar Port in November.
Source: http://www.newindianexpress.com/wor...argo-ship-anchors-in-gwadar-port-1556350.html

Date: 05th January 2017
 
This happens even in UK. When elections are announced everything becomes uncertain and government goes into 'standby' mode. Result all project go into doldrums. As soon as the new government takes over give few months for it to consolidate it's administration and everything will be back on track with CPEC.
 
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