Saudi Arabia voices concern over extremist Israeli statements about West Bank sovereignty and settlements    Al-Rajhi: Number of Saudi employees in private sector soars 35% to 2.34 million in 5 years    Indonesia shocks Saudi Arabia with 2-0 victory in AFC Asian Qualifiers    GBB Venture announces the 16th Real Estate Development Summit Saudi Arabia: Luxury Edition    Putin signs new doctrine lowering threshold for nuclear weapon use    KSrelief to hold International Conference on Conjoined Twins on Nov. 24-25    Prince Faisal and Blinken discuss regional developments    Sitting too much linked to heart disease –– even if you work out    Hong Kong's leading democracy activists handed lengthy prison terms in mass trial    Almost 100 Gaza food aid lorries violently looted, UN agency says    Trial begins for men accused of smuggling Indian family who froze to death at US-Canada border    Theme parks, talent and tech: Saudi Arabia's path to global entertainment leadership    Cityscape Global 2024 showcases Saudi real estate sector's growing appeal to global investors    Yemeni Orchestra's captivating performances in Riyadh, showcasing shared cultural legacies    Saudi Arabia targets win against Indonesia in AFC Asian Qualifiers match    Future of Ronaldo's Al Nassr contract remains undecided, says Saudi Pro League CEO    Salem Al-Dawsari out for three weeks, Ruben Neves to return in January after surgery    GASTAT report: 45.1% of Saudis are overweight    German manufacturers warn of the sector's 'formidable crash'    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



The CPEC opportunity
Published in The Saudi Gazette on 14 - 08 - 2016

CHINA Pakistan Economic Corridor (CPEC) was put on the planning and implementation canvas in 2013 when the notion of the Silk Road was reformulated and re-phrased by China under "One Road, one Belt initiative". The CPEC is the most significant part of this global vision of integrating nations from East to West and South to North. Pakistan is positioned as the key partner of this vision.
The corridor is meant to provide economic advantage to Pakistan, a land route to China from warm waters of the Arabian Gulf and integration with nations falling under its influence. Above all, it is of strategic value to the defense institutions of Pakistan and China.
For China, there is an urgency for the completion of the CPEC and so is the case with the military establishment of Pakistan and both are on the same page insofar as this subject is concerned. The first priority of China is to operationalize Gwadar port and build up the road network to China. Supported by the military of Pakistan through security to the Chinese workers and completion of road network by Frontiers Works Organization (FWO), the Chinese are making good progress and are happy with this partnership.
It is reported that the political leadership is failing to provide the kind of government coordination and efficiency that the Chinese government is seeking and the military leadership is demanding. To speed up work and achieve better efficiency, there is a move to set up "CPEC Development Authority" to manage CPEC projects. These projects are currently being handled from the special cell operating from the Prime Minister's Office with the assistance of Ministry of Planning and Development. Both want CPEC to be isolated from political turmoil and controversies.
The total funding offered by China to Pakistan under the CPEC is $46 billion. Of this, $34.4 billion is allocated to energy sector to add 17,045MW to the national grid whereas $9.8 billion would be made available for transport infrastructure projects and around $0.8 billion for Gwadar Port-related projects. Around 76 percent of the funding is focused on energy projects. The list of CPEC energy projects bifurcated into two sections: Priority Energy Projects and Actively Promoted Energy Projects.
CPEC Priority Energy Projects include over 7,000MW of coal-based power projects costing over $13 billion, Thar Coal Mining and Power project of 1,320MW costing $3.3 billion, hydropower projects of 1,590MW costing $3.2 billion, 1,000MW solar project costing $1.4 billion and wind power generation projects of 250MW costing $0.5 billion and transmission line projects of $3 billion. CPEC Actively Promoted Energy Projects include coal-based power projects of 3,600MW costing over $7 billion, Thar coal power project of 1,320MW costing $1.3 billion, wind power of 100MW costing $0.15 billion and hydropower projects of 1,100MW costing $2.4 billion.
In total, under pursuit is 10,400MW of priority projects costing $21.5 billion and 6,645MW of promoted projects costing $12.9 billion. To manage 17,000MW of additional capacity on the grid and disbursement of $34.4 billion for the purpose is a very challenging task considering the fact that the existing power installed capacity of Pakistan is 23,000MW built up over 65 years. It requires very high level of professional skills, management based on merit and a transparent financial conduct. Presently, all of this is missing both in the private and public sectors.
There is a lack of good governance in the energy sector, whereas the role of regulators is passive and subservient, to say the least. There is a lack of a strategic approach and planning and there is a serious mismatch between power generation capacity and power evacuation capacity. The wind power generated at Jhampir, Sindh, cannot be evacuated as there is no transmission line to do so. There are many similar examples.
An efficient management of 10,000MW of coal-based power projects requires a large jetty and infrastructure at port and rolling stock for its transportation on rail to power plants. Although, $1.2 billion has been dedicated for jetty and infrastructure support under actively promoted project, no work is reported to have commenced on these areas. This activity should have been placed in the category of Priority Project. The planners were required to start work on it before the work on coal-based power plants. Pakistan Railways is reported to have acquired some rolling stock to manage a few of the coal-based power plant. But this ad hoc solution can help meet the requirements of coal-based power plants. The much-hyped Gaddani Power Park to generate over 6000MW of coal-based power was abandoned as the Chinese lenders withdrew financing due to lack of availability of coal and transportation infrastructure that the government has promised to put in place within two years.
Construction work on 969MW Neelum-Jhelum hydropower plant started in 2008 when Wapda awarded the contract to a Chinese Consortium of contractors. The project suffered unprecedented delays and phenomenal cost over-runs - largely unexplained. The PML-N will gain much by maximizing the implementing of projects in its remaining tenure till 2018. Managing the CPEC from a cell in the PM's House is an unacceptable mode of managing projects of unprecedented volumes under the focus of China and military establishment of Pakistan. The government has to establish an autonomous institution to manage this humongous task requiring transparency and urgency.


Clic here to read the story from its source.