OBOR and CPEC : News, Discussions & Updates

CPEC’s transparency: NHA admits irregularities in award of $2.9b contract to Chinese firm

ISLAMABAD: The National Highway Authority (NHA) chairman confessed on Tuesday that there were irregularities in the award of a $2.9-billion contract to a Chinese firm for construction of a motorway under the China-Pakistan Economic Corridor (CPEC).

The admission raises transparency concerns in the multi-billion dollar deals.

NHA Chairman Jawwad Rafique Malik admitted that concessions worth roughly $200 million given to the China State Construction Engineering Company (CSCEC) were not part of the original bidding documents Pakistan had floated for the construction of the 392-kilometre long Multan-Sukkur section.
 
Chinese Prisoners Are Working on CPEC Projects, Says Pakistan Parliamentarian

New Delhi: A senior leader of Pakistan’s primary opposition – the PPP – has alleged that Chinese prisoners are being used in the construction work of the China Pakistan Economic Corridor (CPEC).

Nawab Mohammad Yousuf Talpur, a senior leader of Pakistan People’s Party, said this in the lower house, or National Assembly, of Pakistan’s Parliament on Monday. He alleged that a large number of Chinese prisoners were working on development projects of the China Pakistan Economic Corridor.

"I have learnt that prisoners have been brought from Chinese jails and they are constructing roads. They can be involved in crimes so there should be proper security arrangements," Talpur said. He raised the question citing security concerns for Pakistan.

"I assume that a secret or unannounced agreement has been made between the two countries because prisoners cannot be sent from one country to another without taking the host nation into confidence. Chinese construction companies are using prisoners as labourers," he added.

The leader said that a number of Chinese nationals had been arrested in ATM fraud cases, especially in Karachi. "Pakistanis are not capable of carrying out such crimes. I assume that Chinese prisoners are involved in ATM thefts and other computer crimes such as breaking into computers or computer networks," he said.
 
Chinese prisoners working on CPEC in Pakistan: MP
Omer Farooq Khan | TNN | Updated: Mar 2, 2018, 10:17 IST

ISLAMABAD: A lawmaker claimed that China had sent a large number of its prisoners to work as labour on the $60 billion China Pakistan Economic Corridor(CPEC) development projects in Pakistan.
Nawab Mohammad Yousuf Talpur, a National Assembly member of opposition Pakistan Peoples Party (PPP), said at a recent meeting of parliamentary committee said, "I have learnt that prisoners have been brought from Chinese jails and they are constructing roads. They can be involved in crimes so there should be proper security arrangements."

Talpur who was quoted by Dawn, questioned the authorities to explain if they had entered into any tacit agreement with Beijing to use the country for penal settlements. "I contacted a concerned official who confirmed that prisoners had been working in Pakistan. My doubt was strengthened by an ambiguous response from the ministry of interior which rather than rejecting my claim just said it was not in the knowledge of the ministry," he said.

The PPP member said that he assumed that a secret or unannounced agreement had been made between the two countries "because prisoners cannot be sent from one country to another without taking the host nation into confidence." The lawmaker pointed out that a number of Chinese nationals had been arrested in ATM fraud cases, especially in the port city of Karachi.

The home ministry reportedly showed ignorance about the presence of Chinese prisoners in Pakistan. Rizwan Malik, the Special Secretary for Interior, told the parliamentary committee that Chinese workers were being given a three-layer security. "There is a separate security for Chinese nationals who have been working on CPEC projects. Separate arrangements have been made for those who have come for electricity projects," Malik said, adding that arrangements had also been made to provide security to Chinese students and business people.

Chinese prisoners working on CPEC in Pakistan: MP - Times of India
 
Pak media crying as China snatches jobs from Pakistanis


Whole Pakistan is being sold off for CPEC-Pak Media

 
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Senators in shock: CPEC western route doesn’t exist in Chinese record

ISLAMABAD: Many in the Senate learnt to their shock on Friday that the CPEC’s western route that the government claimed giving top priority did not exist even in the Chinese record.

On the last day of the last session of the Senate’s parliamentary year with 52 of its members retiring, the PkMAP parliamentary leader in the House Senator Usman Khan Kakar said during their visit to China they came to know that there is no record of the western route in the Chinese record. He lauded Senator Taj Haider, the convener of the Special Committee on CPEC, for working tremendously on the issue and taking it up with authorities.

He said the committee has presented five reports, whereas the Parliamentary Committee on CPEC, having representation from both houses of the Parliament, could not present a single report. Taj Haider said while their visit was arranged by the Chinese Embassy, the committee members did their utmost to sensitise the hosts to the critical importance of western route.

Kakar cautioned that it is being speculated that the sugarcane growers might not cultivate the crop this year as they are not being paid even the minimum support price fixed by the government. The committee in its report recommended to the federal and provincial governments to evolve a mechanism to ensure payment of a reasonable price to the growers and the notified price should be implemented by the cane commissioners and also by the respective provinces.

Senator Muzaffar Shah also presented the final report of the Senate special committee on the performance of PIA. He said they visited Karachi and interacted with the relevant officers and even former chairmen of the airlines. He said the report, if implemented, would help resolve most of the issues of the state-owned entity. He particularly praised Senators Farhatullah Babar and Abdul Qayyum for their input in this connection.
 
Chinese company operating Gwadar lacks NoC

ISLAMABAD: The National Assembly’s Standing Committee on Finance on Tuesday was informed that the Ministry of Interior had not yet issued security clearance to M/S China Overseas Ports Holding Company (COPHL), which is building and operating the Gwadar Port, causing the parliamentary panel to ask the authorities to probe this matter.

“The Security and Exchange Commission of Pakistan (SECP) has been directed to launch an investigation against COPHL,” the NA committee said in a meeting held here at the Parliament House on Tuesday under chairmanship of Qaiser Ahmed Sheikh.

SECP Executive Director Shaukat Hussain informed the NA panel that the Ministry of Interior had not yet issued a security clearance certificate to M/s (COPHLC-Pakistan) that is building and operating Gwadar deep-sea port. He said that they had written to the Ministry of Interior in November 2014 but so far got no response.

Under the requirements of the Ministry of Interior, companies involving foreign directorships and subscribers have to secure mandatory clearance –the No Objection Certificate, from the Ministry of Interior.

PTI leader Asad Umar revealed that COPHLC-Pakistan was a company of unknown credentials at best and attributed to an article in which it was claimed that the parent company of the COPHC-Pakistan, the China Overseas Ports Holding Limited, was a one-room company, registered in Hong Kong.

The chairman of the NA panel asked the SECP to probe these allegations in order to determine the origin of the parent company of the COPHLC-Pakistan. The committee also directed the SECP to submit complete profiles of the parent company and its subsidiary. The committee asked the SECP to review the security clearance issue of the COPHC-Pakistan. The SECP also submitted documents in the standing committee. Its papers showed that the three directors of the company hold only three shares – one each for its three directors – and the rest of its total 10 million shares is owned by COPHC Limited based out of Hong Kong.
 
Mega oil city to be constructed in Gwadar under CPEC

The Gwadar oil city, he said, would be used for storing oil for its onward transportation to China. Usually, it takes 40 days for vessels to transport oil to China but via Pakistan it will reach China within 7 days, he added. He said that the total area of Gwadar Model City is 290,000 acres which includes 160,000 acres of residential area while the remaining is for industrial purposes. A Chinese company is working on the Model City Plan and it will be ready by August 14, 2018.


I wonder how economical this move to transport through road will be. Though slow ship is still very very cheaper and this road will not be open round the year. Another Ponzi scheme IMHO .
 
China’s Belt and Road Initiative heightens debt risks in eight countries

BEIJING: China’s Belt and Road Initiative (BRI), which aims to invest approximately USD 8 trillion in infrastructure projects across Europe, Africa, and Asia, has raised serious concerns about sovereign debt sustainability in the eight countries that it funds, according to a recent study.

The Center for Global Development research evaluated the current and future debt levels of the 68 countries hosting BRI-funded projects.

It revealed that in eight of the 23 countries that are at a risk of debt distress, future BRI-related financing will significantly add to the risk of debt distress. They are Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.

"Belt and Road provides something that countries desperately want – financing for infrastructure," said co-author John Hurley, a visiting fellow at the Center for Global Development. "But when it comes to this type of lending, there can be too much of a good thing."

Further, according to the study, China’s track record of managing debt distress has been problematic.

Unlike the world’s other leading government creditors, China has not signed on to a binding set of rules of the road, when it comes to avoiding unsustainable lending and addressing debt problems, as and when they arise.

"Our research makes clear that China needs to adopt standards and improve its debt practices, and soon," said co-author Scott Morris, a senior fellow at the Center for Global Development.

The study also recommended that China multilateralise the Belt and Road Initiative.

Currently, the multilateral development institutions (MDBs) like the World Bank are lending their reputations to the broader initiative while only seeking to obtain operational standards, that will apply to a very narrow slice of BRI projects, those financed by the MDBs themselves.

The study suggested that before going further, the MDBs should work towards a more detailed agreement with the Chinese government when it comes to the lending standards that will apply to any BRI project, no matter the lender.

It also urged China to consider additional mechanisms to agree to lending standards.

Some methods might include a post-Paris Club approach to collective creditor action, implementing a China-led G-20 sustainable financing agenda, and using China’s aid dollars to mitigate risks of default.

Not long ago, the Center for Global Development (CGD) published its analysis on the impact of One Belt One Road.

The analysis indicated that many countries developed a significant dependency on China and their debt level increased significantly.
 
Confusion Over Chinese Talks With Baluch Separatists In Pakistan

Major separatist factions and leading ethno-nationalist politicians active in Pakistan’s restive southwestern province of Balochistan have denied engaging in secret talks with Chinese officials keen on preserving their country’s $60 billion investments.

Sources within the insurgent factions, however, claim that some Baloch political figures did meet with Chinese officials, but it is not clear what exactly was achieved.

The confusion over the meetings emerged this week after the Financial Times newspaper reported that Chinese officials have been holding talks with Baluch militants for more than five years to secure nearly $60 billion investments in energy and infrastructure collectively called the China-Pakistan Economic Corridor (CPEC).

Quoting anonymous sources, a February 19 report in the newspaper said Chinese officials “have quietly made a lot of progress” in efforts to secure CPEC, which aims to link Balochistan’s Gwadar seaport to Xingjian region in western China.

CPEC is the flagship project of a larger Chinese strategy dubbed One Belt One Road, which aims to link China with Africa, Europe, and Asia in a 21st-century reincarnation of the ancient Silk Road.

Two people familiar with the talks said Baluch tribal leaders Gazain Marri and Sardar Akhtar Mengal held two rounds of secret talks with a Chinese delegation in the United Arab Emirates in May and September last year.

Both exiled members of Baluch separatist factions who now live in Europe requested anonymity because of fears that such claims would further divide an already fragmented separatist leadership.

“Gazain Marri ended 18 years of self-exile and returned to Pakistan, which was most probably because of Chinese government efforts,” said one of the figures, who was close to his father, the late Baluch separatist leader Khair Baksh Marri.

Marri couldn’t be reached for immediate comment but has rejected claims that his return in September was the result of a secret deal. In November, he urged caution and dialogue and indicated a willingness to help negotiations between armed separatist rebels and the Pakistani government.

“I want to engage in consultation to work out a middle path toward compromise,” he told Radio Mashaal at the time.

Mengal, the leader of the ethno-nationalist Balochistan National Party (BNP), denied meeting with Chinese officials. “Why would I meet a Chinese delegation secretly in Dubai? I can meet them openly in Pakistan,” he said.

Mengal, who served as chief minister or the most senior elected official of Balochistan in the 1990s, said the only time Chinese diplomats approached him was in 2016 when he hosted Pakistani political parties in the capital, Islamabad, for a debate over CPEC’s potential negative impact on Balochistan.

“I couldn’t meet the Chinese delegation then because I was busy, but we conveyed our party’s reservations,” he said. “Later, when I wanted to meet the Chinese diplomats, they declined to meet us, claiming our party’s stand on CPEC was too rigid.”

BNP and other Baluch nationalist parties oppose CPEC because of fears it will attract an influx of economic migrants to Gwadar and other Balochistan regions, which will render the Baluch into a minority in their historic homeland.

Sentiments over the CPEC run high in the region reeling from more than 15 years of simmering violence. Thousands of civilians, soldiers, activists, and guerrillas have been killed and hundreds of thousands of civilians have been displaced in Balochistan, where the military and militants frequently accuse each other of atrocities and grave rights violations.

In recent years, Baluch separatist militants, organized in various guerrilla factions, have acted on their threats to attack CPEC projects. All prominent exiled leaders such as Brahumdagh Bugti, Mehran Baluch, and Hyrbyair Marri have either denied participating in talks with the Chinese or say they have no knowledge of such negotiations.

“All independent political parties and armed groups are working against Chinese investments and other exploitive projects, which are doomed to fail,” said Gwarham Baloch, a spokesman for the Baloch Liberation Front.

Pakistani and international media reports suggest that scores of Pakistani workers and a handful of Chinese engineers and technicians have so far been killed in attacks in Balochistan.

The sentiments against the growing Chinese footprint in the region is widely shared among separatist factions.

“How can talks be held with China when they are helping the Pakistani military kill and abduct Baluch activists?” asked Sher Muhammad Bugti, a spokesman for the Baloch Republican Party.

“We are open to talks even with China, but first China has to become neutral and leave the province,” he added.

Aslam Baloch, a senior commander of the Balochistan Liberation Army, also dismissed reports of secret talks with China.

“CPEC is a serious threat to Baluch national existence. Pakistan and China are continuously inflicting brutalities upon the Baluch nation for its success,” he wrote on Twitter. “Therefore, talks with tribal elders, or anybody else for that matter, do not carry any importance.”

Former lawmaker Kachkol Ali, however, says the talks between Beijing and Baluch separatist figures are a serious possibility. He points to the return of Gazain Marri and the recent reconciliation of another exiled figure, Juma Marri, with Pakistan as evidence of efforts to wean figures away from the separatist movement.

"It is premature to say if China is acting as the mediator between Pakistan and separatists,” he noted. “But if something is happening, it can't be kept secret for long.”

Kiyya Baloch is a freelance journalist who reports on the insurgency, militancy, and sectarian violence in Balochistan.
 
Typocal b H K T thinking. Everyone is busy ripping of Pakistan and you are preventing India from sharing the spoils.

India has its plate full share of spoils from Pakistan ... it gets delivered straight in Kashmir. Let's first take care of that.
 
Sahiwal coal-fired power plants feared closure on non-payment of dues

LAHORE: Chinese-owned Sahiwal coal-fired electricity project, having 1,320 megawatts generation capacity, has neared the brink of closure within nine months of its operation as government couldn't settle Rs20 billion in power dues of the project, corporate sources said on Monday.

The sources said the government has yet to pay around Rs20 billion of the outstanding amount to the management of coal-fired power plants, which are helping in bridging gap between demand and supply with cheap power.

“Against monthly payments of Rs10 billion, the government is only clearing partial payments, which may hamper power production,” a project’s official said, requesting anonymity. A spokesman of power ministry argued that government is making payments to Sahiwal coal power company. “Seventy nine percent of outstanding amount has been paid till today,” he said, declining to share other details.

Sahiwal coal power project, which is the first energy sector’s initiative under multibillion dollars China-Pakistan Economic Corridor (CPEC), was built with the cost of $1.6 billion. Construction on the project started in March 2015. The first generating unit of the Sahiwal power plant was inaugurated in May last. The second unit was put online in late 2017. The project was completed in a record period of 22 months.

A joint-venture of China’s state-owned Huaneng Shandong Electricity Limited (owning 51 percent of stake) and textile firm Shandong Ruyi Group (holding 49 percent stake) built the project on a build, operate and transfer basis. The plant’s ownership will be transferred to the government of Punjab after 30 years of operation.
 
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IMF head warns China on exporting debt through 'Silk Road'

BEIJING: IMF chief Christine Lagarde warned China on Thursday about saddling other countries with a "problematic increase in debt" through its ambitious global trade infrastructure project.

"These ventures can also lead to a problematic increase in debt, potentially limiting other spending as debt service rises, and creating balance of payment challenges," Lagarde told the crowd of Chinese and foreign officials.

"In countries where public debt is already high, careful management of financing terms is critical," she said.

Some countries like Sri Lanka have already ended up deeply in debt and been left with little choice but to turn over crucial assets to Beijing as way to restructure the loans. In Sri Lanka's case, the island nation handed over a long term lease on the strategically located and bustling Hambantota Port to pay down debt.
 
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IMF head warns China on exporting debt through 'Silk Road'

BEIJING: IMF chief Christine Lagarde warned China on Thursday about saddling other countries with a "problematic increase in debt" through its ambitious global trade infrastructure project.

"These ventures can also lead to a problematic increase in debt, potentially limiting other spending as debt service rises, and creating balance of payment challenges," Lagarde told the crowd of Chinese and foreign officials.

"In countries where public debt is already high, careful management of financing terms is critical," she said.

Some countries like Sri Lanka have already ended up deeply in debt and been left with little choice but to turn over crucial assets to Beijing as way to restructure the loans. In Sri Lanka's case, the island nation handed over a long term lease on the strategically located and bustling Hambantota Port to pay down debt.

How dare you post something against higher than ganja and deeper than tatti rusted iron brother.
 
CPEC bridge built 3 months ago collapses in Sindh

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Notice the lack of support structures