OBOR and CPEC : News, Discussions & Updates

_Anonymous_ said:
IndoPacific_SCS_Info (@IndoPac_Info) Tweeted:
#China to take over #Kenya’s lucrative Mombasa port, Its main port, over unpaid huge #Chinese Loan - Also at stake is the Inland Container Depot in #Nairobi, which receives and dispatches freight hauled on the new cargo trains from the seaport. China to take over Kenya's main port over unpaid huge Chinese Loan (
https://twitter.com/x/status/1193759967045541888
)
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Soon u will hear Gwadar port taken over by the Chinese. Gwadar city will be full of Chinese with their Pork eating , alcohol drinking appetite. Locals will be banned..
Lol so much fun
 
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China grabbed more land than East India Company, says ex-Maldives president Mohamed Nasheed

Nasheed says free trade agreement which Maldives signed with China, under the previous pro-Beijing regime of Abdulla Yameen, was now dead.

By Nayanima Basu, 13 December, 2019 8:44 pm IST
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Former Maldives president Mohamed Nasheed | Commons

New Delhi : Former Maldives president Mohamed Nasheed Friday accused China of grabbing “more land…than the East India Company” in the island nation. Nasheed, who is the speaker of People’s Majlis of The Maldives, also said that Beijing should consider restructuring the debt the island nation now owes it.

“China has grabbed more land than the East India Company … They have not given development assistance to us. It was a debt trap. We must now get the contracts done. We can’t stop that. We have to pay the bill. But the Chinese government must restructure the debt,” Nasheed said at a news conference in Delhi.

Earlier in the day, Nasheed also met Prime Minister Narendra Modi and urged the latter to expedite projects that India has been developing in Maldives as part of the $1 billion credit lines.

“We had discussions with the Indian government on how to fast-track the projects,” he said.

Nasheed also said that the free trade agreement (FTA) which Maldives has signed with China, under the previous pro-Beijing regime of Abdulla Yameen, was now “dead”.

“The FTA is dead and it now requires Parliament’s approval and it will not be approved… What China did we see it as imperialism, as colonialism and as land-grab,” he said.

Human-rights and growing IS threat

The former president also said he would not shy away from dragging Beijing to an international arbitration on human rights, for trapping Maldives with a debt of around $3.5 billion.

“It is impossible to pay back the loans. The money never came to us. But we have a big bill to pay and we will pay the bill. Not many politicians (in Maldives) pay for it,” he said.

Nausheed also raised concerns about the growing challenge of radical Islamism in Maldives and said there were fears that the island nation may become a hub of IS fighters having links to the al-Qaeda.

He later said that over 250 people from the Maldives had joined the IS, but not a single one from India, when his government was in exile. “This shows that India is doing something good that nobody from there joined the IS.”

China grabbed more land than East India Company, says ex-Maldives president Mohamed Nasheed
 
Gwadar agreement: Senate body backs 40-year tax break
ISLAMABAD: A Senate panel on Tuesday endorsed 40-year tax holiday for Gwadar Port and its free zone after the government showed the bilateral agreement to legislators that carried provisions for tax concessions for all including sub-contractors.

The Senate Standing Committee on Finance criticised Maritime Affairs Secretary Rizwan Ahmad for making a misstatement about the time period of tax concessions and exclusion of sub-contractors from the scope of these concessions.

After having a look at the agreement, the standing committee endorsed the tax concessions that the government proposed in the Finance Bill 2020 for Gwadar Port and Gwadar Free Zone. The committee meeting was held in-camera due to the hype created about the nature of Pakistan-China agreement on Gwadar Port.

The proposed amendments were in line with the original 2007 Gwadar Port agreement, according to the standing committee.

Contrary to the secretary’s claim that the agreement was confidential, the committee did not find any confidentiality clause in the treaty. However, it returned photocopies of the agreement to the Ministry of Maritime Affairs after reviewing it.

“The 2007 and 2013 concession and novation agreements cannot be shared as there is a confidentiality clause in the agreement,” the maritime affairs secretary stated last week during a meeting of the Senate Standing Committee on Finance.

Last week, the secretary also stated that “the original Gwadar Port concession agreement offered only 20-year tax holiday to port operators and there was also no provision for extending the tax concessions to sub-contractors.”

Pakistan has handed over Gwadar Port to China that is developing the deep-sea port as part of the strategic Belt and Road Initiative of the Chinese president.

“The Ministry of Maritime Affairs earlier misguided parliament and breached its privilege,” said Committee Chairman Senator Farooq H Naek of the Pakistan Peoples Party (PPP).

Jamiat Ulema-e-Islam Fazl (JUI-F) Senator Talha Mehmood suggested that the committee should move a privilege motion against the secretary while taking exception to the wrong information provided by him.

Earlier on June 18, the maritime affairs secretary stated that the original Gwadar Port concession agreement offered only 20-year – not 40-year – tax holiday to port operators and there was no provision for extending tax concessions to the sub-contractors.

The Federal Board of Revenue (FBR) proposed up to 40-year tax holiday for Gwadar Port operators, its contractors and sub-contractors on the recommendation of the maritime affairs ministry.

Sub-contractors were also covered under the definition of contractors, therefore, they were eligible for the concessions, according to the standing committee chairman, who briefed panel members on the agreement.

“These concessions would be very useful in operating Gwadar Port and Gwadar Free Zone,” the finance committee remarked. “As a result, its people would also benefit in terms of employment and development of the area.”

The agreement showed that the 40-year tax holiday took effect from February 6, 2007 under the 2007 Gwadar Port concession agreement between Pakistan and a Singaporean company.

The 2013 novation agreement between Singapore and a Chinese company only changed the name of the operator and rest of the conditions remained unchanged, according to a member of the standing committee.

The government had given 40-year tax holiday to the Chinese operators of Gwadar Port and free zone through a presidential ordinance in October last year. The ordinance has lapsed and the government has now proposed permanent legal cover for these concessions through the Finance Bill 2020.

Under the agreement, China Port Holding Company got three firms registered with the Securities and Exchange Commission of Pakistan (SECP), namely Gwadar Free Zone Company Limited, Gwadar Maritime Services Limited and Gwadar International Terminal Limited.

Now, these three companies will avail the concessions, which will also be available to their sub-contractors.
tribune.com.pk

Gwadar agreement: Senate body backs 40-year tax break | The Express Tribune

Govt shows document to legislators which offers tax concessions to all
tribune.com.pk tribune.com.pk
 
China’s Belt and Road Initiative is cracking! What’s blocking China’s highway to global dominance?
China is synonymous with Authoritarianism, Overpopulation, Manufacturing, Expansionism, and Patent infringement. However, the most recent addition, besides concentrationcamps for Uighurs is the Belt Road Initiative (BRI) formerly known as the ‘OneBelt One Road’ (OBOR). The BRI was announced by the Chinese President Xi Jinping in 2013, as an Economic and Maritime Silk Road. This multi-faceted project assimilates infrastructure connectivity, investment andtrade cooperation, financial integration, cultural exchange, and regionalcooperation between Asia, Europe, Africa, and Latin America. The scale of the BRI is exemplified by the 4.4billion people (70 percent of the world population) and the cumulative grossdomestic product (GDP) of around $21 trillion that it plans to reach. The projected cost of the BRI could reach a gargantuan $1.2–1.3trillion by 2027 as predicted by Morgan Stanley, making BRI the mostexpensive and expansive International infrastructure project ever taken.
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The antecedents of the modern-day BRI could be traced back to the ancient Silk Road; a vast network of routes used by traders to carry goods between the Eastern and Western civilizations. In comparison, the modern-day Silk Road is a comprehensive set of infrastructure development projects spanning across 140 countries including China. This unprecedented reach makes BRI an indispensable tool of the Chinese Foreign Policy; helping China to garner support on multilateral forums. The wide acceptance of the BRI is due to its multi-dimensional nature offering Chinese cooperation in Digital, Space, Arctic, Maritime, and overland connectivity. This consortium of connectivity projects in crucial sectors creates a fertile environment for China’s dominance over global trade, giving it an unchecked level of influence and leverage.

China has spent an estimated $200 billion of the estimated $1.2-1.3 trillion investment gap on infrastructure development under the BRI. The generous funding of the BRI projects has been possible due to the Chinese financial institutions which operate through four distinct channels; policy banks, state-owned banks, international financing institutions, and sovereign wealth funds including the Silk Road Fund with a market capitalization of $40 billion. This massive lending capacity dwarfs the US counter to the BRI ‘the Build Act’; which consolidates Overseas Private Investment Corporation (OPIC), a U.S. government agency for development finance, with components of the U.S.Agency for International Development (USAID) into a separate agency with a $60 billion investment portfolio. However, this pales in comparison to the BRI; the largest ongoing project of the BRI; China-Pakistan Economic Corridor (CPEC), alone costs $60 billion, it is an assortment of projects connecting China to Pakistan’s Gwadar Port on the Arabian Sea.

“All human plans [are] subject to ruthless revision by Nature, or Fate, or whatever one preferred to call the powers behind the Universe.” ? Arthur C. Clarke, 2010: Odyssey Two.

The worldwide spread of the COVID-19 virus, has led to the BRI projects come to a screeching halt. We are now heading towards a post-pandemic society, where the new rule book on International cooperation is yet to be scripted since the pre-Covid rules have been deemed irrelevant around the world. The lockdown has been a period of reflection for the people and nations alike; culminating in the revision of domestic and international policies. India has embarked on a policy of Self-dependence and many other countries have downgraded their relationships with China. However, in South Asia, Pakistan, Sri Lanka, Nepal, Bangladesh, and the Maldives, remain to be major recipients of Chinese assistance during the crisis despite the International criticism of China's role in the pandemic. In response, China has re-invigorated the ‘Health’ dimension of the BRI; giving China the opportunity to change or control the global narrative and push its own official line that, it has been transparent, open, and comprehensive in dealing with the pandemic, “buying precious time for the global response.” Earlier in 2017, China had received support from the WHO for its involvement in Public health at the Belt and Road Forum for Health Cooperation. However, with the origin of the virus being in China and the mishandling by the WHO at the early stage of the virus, nations have developed a sense of resentment towards WHO and China. As a consequence, countries have been looking for an alternative to Chinese testing kits, expertise and medicines to combat the COVID-19.

Thepandemic has halted the China-Pakistan Economic Corridor (CPEC), Cambodia’s Sihanoukville Special Economic Zone, the Payra power plant in southern Bangladesh, and the Port City development project in western Sri Lanka. Even before Covid-19 wreaked havoc on supply chains and imposed travel bans on Chinese workers, many of China’s BRI projects especially in Africa were coming under scrutiny. African Countries have already called for $100 billion in bailouts and debt relief to help them cope with the devastating effects of the pandemic. Figures from the China Africa Research Initiative at the Johns Hopkins School indicates that China lent over $143 billion to African countries between 2000 and 2017. In South Asia, the Maldives has sought to renegotiate its debt to China while Bangladesh has requested China to consider deferring payments. Although China has previously agreed to write off debts it has done so in a unilateral non-transparent manner with no international oversight. As lockdowns lift globally, infrastructure projects will resume operations, however, the capital which funds the construction will be scanty. The Chinese economy has contracted by 6.8 percent in the first quarter of 2020, with a slowdown already underway, Beijing is being careful about new investments. It is likely to prioritize mitigating the financial impact of the virus and resolving the trade war with the United States over rolling out new overseas infrastructure projects. While BRI projects may not be shelved, they will most certainly be plagued by delays.
www.financialexpress.com

China’s Belt and Road Initiative is cracking! What’s blocking China’s highway to global dominance? Check

The BRI was announced by the Chinese President Xi Jinping in 2013, as an Economic and Maritime Silk Road.
www.financialexpress.com www.financialexpress.com
 
One such incident of 21st July has come to light in which physical altercation took place between Chinese labourers and Pakistan protection party working on CPEC's Main Line -1 (ML-1) Karachi-Peshawar project.The Incident happened in Pakistan's most populated Punjab Province's Bahawalpur District between 6.30 am to 6.45 am. Details of the incident have been mentioned in a letter from Lt Col Imran Qasim, commanding officer 27 Wing of Special Security Division (SSD) based at Bahawalpur to HQ 341 Light Commando Brigade.

To provide protection to Chinese workers, Pakistan has been providing "protection party" and in this case six Pak army personnel from 341 Light Commando Brigade led by Havaldar Asad Ullah were provided to protect--four Chinese labourers namely Li Yuyun, Li Yujun, Li Guoying and Bu Lei. In all the group had 12 people, including 2 Chinese civilians and one Pakistani army vehicle.

The work was to be done at two sites: Tower G-1526 & Tower G-1523. The Chinese group was led by Li Yuyun who insisted on moving to G-1523 with the entire group, leaving only one Chinese labourer at G-1526. Havaldar Asad Ullah suggested an additional soldier and a Chinese vehicle should be left with the one Chinese labourer. While Asad wanted to clarify the issue with his seniors, due to language problem, he was assaulted by Li Yuyun by hitting on his head twice. This made other Pakistani soldiers angry with Sapper Fazal ur Rehman come to the rescue of Asad before he was also attacked by other Chinese workers.

When the matter was reported to Camp commandant Maj Shehzad, who asked his soldiers to not confront with Chinese and the matter was quietly hushed up. In this current incident, Lt Col Imran Qasim, Commanding officer of 27 Special Security Division has been involved in making money, by providing local labourers to Chinese contractors via proxy. The officer is involved in the embezzlement of tens of lakhs Pakistani rupees. Maj Shehzad's lack of proactive action against the Chinese is believed to be under the direction of Lt Col Imran Qasim who is part of money-making in the project.
 
Kenya's Chinese-Built Railway Proves Pricey
NAIROBI - Kenyan lawmakers want the operating costs of a Chinese-built railway nearly cut in half and have called for renegotiating the Chinese loan to finance the line's construction. Parliament’s Transport Committee says huge operating losses and debt to Chinese banks are straining taxpayers already hit by the economic fallout from the COVID-19 pandemic.

Members of the National Assembly’s Transport Committee unveiled a report Wednesday asking lawmakers to push for reduced costs on the railway line, known as the Standard Gauge Railway, or SGR.

The head of the committee, David Pkosing, says legislators also want the government to seek new terms for the $4.5 billion in loans used to build the railway.

“We also recommended that the entire loan framework should also be renegotiated, the original loan framework now with COVID-19 and, of course, Kenya and the world will never be the same again with this effect of COVID-19. That loan should be renegotiated downwards or agreed on even extending the time upon which we should have paid the loan,” Pkosing said.

The railway carries goods from the port of Mombasa to Nairobi. In 2019, it transported 9 million tons of goods.

Kenya currently pays $1 million every month to China’s Africa Star Railway Operation Company to run the railway. Since 2017, Kenya failed to meet the monthly payment for 21 months.

Parliament wants the monthly cost to be brought to $600,000 and wants to engage China on how to pay the loan.

Tony Watima, an economist based in Kenya, says China may be reluctant to negotiate a deal with Kenya.

“The latest update we have seen that China has renegotiated debt with Angola, but circumstances are different. Angola debt is commodity-backed - they export commodity, especially oil.... So, for Kenya, those debts were not commodity-backed, they were just given debt for investment projects, so the risks are high on the China side, and they will look [at] Kenya as a country, not like Angola, and renegotiating those terms will be a big problem, it means China has to take a lot of risks. That’s one of the things we have not seen China engage in any African country on that,” Watima said.

Between 2010 and 2018, China lent over $150 billion to African nations for projects mainly related to its 'Belt and Road' infrastructure initiatives.

In June, Kenya’s court of appeal ruled that the Kenya Railways Corporation, as the procuring entity of the Standard Gauge Railway, failed to meet the constitutional threshold of fairness and transparency.

Okiya Omtata, an activist who has pushed the government to make the details of its deal with China public since 2013, questions the legitimacy of the whole agreement.

“I think what the parliament should be saying is that we are not going to pay China for [that] illegal contract, and that’s the end of the day. They have crooks in Kenya and crooks in China who are in power and negotiated this thing, and the people of Kenya cannot be burdened with what they are not benefiting from,” Omtata said.

The railway carried more than 19,000 passengers and 421,000 tons of cargo between Nairobi and Mombasa in July, following a hiatus caused by the COVID-19 pandemic.
www.voanews.com

Kenya's Chinese-Built Railway Proves Pricey

Lawmakers want payments cut nearly in half and loan renegotiated
www.voanews.com www.voanews.com
 
Gandhi was said to have asked Jaishankar. “The Chinese strategy is to move from the maritime to the terrestrial, to change the old Silk Road to a land route linking China to Europe and through the CPEC to the Gulf and bypass the old centrality of India, making us irrelevant. What will India do to counter it?’’ Source

I don't understand why Rahul Gandhi is so concerned about India being left of OBOR a.k.a new Silk Road project. Does he wants India to be a part of OBOR? It is the decision of the Indian Govt to not to join BRI then why this chap feels that Chinese are making us irrelevant. Only god knows. The decision of not joining the BRI is one of the best decisions of the Modi Govt. My personal opinion is without India, this project won't see that much success and it may not be viable to Chinese. Yes, using debt trap they may acquire few territories on lease for 99 years, but there the buck stops.
 
vvabhiram said:
Gandhi was said to have asked Jaishankar. “The Chinese strategy is to move from the maritime to the terrestrial, to change the old Silk Road to a land route linking China to Europe and through the CPEC to the Gulf and bypass the old centrality of India, making us irrelevant. What will India do to counter it?’’ Source

I don't understand why Rahul Gandhi is so concerned about India being left of OBOR a.k.a new Silk Road project. Does he wants India to be a part of OBOR? It is the decision of the Indian Govt to not to join BRI then why this chap feels that Chinese are making us irrelevant. Only god knows. The decision of not joining the BRI is one of the best decisions of the Modi Govt. My personal opinion is without India, this project won't see that much success and it may not be viable to Chinese. Yes, using debt trap they may acquire few territories on lease for 99 years, but there the buck stops.
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Rahul Baba’s company has MOU with CCP company. Pappu is like it’s regional manager/franchise owner
 
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