CPEC
Introduction
China-Pakistan Economic Corridor (CPEC) is a framework of regional connectivity. CPEC is a massive bilateral project to improve infrastructure within Pakistan for better trade with China and to further integrate the countries of the region.
CPEC project was launched on April 20, 2015 by Chinese President Xi Jinping and Pakistani Prime Minister Nawaz Sharif who signed 51 agreements and Memorandums of Understanding valued at $46 billion. The announcement of joint space and satellite initiatives between Pakistan and China, spurred by CPEC, followed in 2016.
Originally valued at $46 billion, the value of CPEC projects is worth $62 billion as of 2017.
The goal of CPEC is both to transform Pakistan’s economy—by modernizing its road, rail, air, and energy transportation systems—and to connect the deep-sea Pakistani ports of Gwadar and Karachi to China’s Xinjiang province and beyond by overland routes.
CPEC would reduce the time and cost of transporting goods and energy such as natural gas to China by circumventing the Straits of Malacca and the South China Sea.
CPEC is part of the larger Belt and Road Initiative—to improve connectivity, trade, communication, and cooperation between the countries of Eurasia—announced by China in 2013.
The economic corridor is considered central to China–Pakistan relations and will run about 2700 km from Gwadar to Kashgar.
The Ministry of Planning, Development & Reform (MPD&R) is the focal Ministry for this engagement whereas its counterpart in China is the National Development and Reform Commission (NDRC).
The Board of Investment (BOI), being central facilitation point for all investors, has been entrusted to promote and facilitate investment including CPEC projects.
Components of CPEC
China and Pakistan agreed to promote a “1+4” pattern of economic cooperation, featuring a central role of the CPEC and four key areas including the Gwadar port, energy, transportation infrastructure and industrial cooperation.
Gwadar ( including port and city and Gwadar region socio-economic development) – 8 projects worth $ 792.62 M
Energy (Coal, Hydel, Wind, Solar, LNG , Transmission) – 21 projects worth $ 33,793 M
Transport Infrastructure (Road, Rail, Aviation) – 4 projects worth $ 9,784 M
Investment & Industrial Cooperation (Gwadar Free Zone and other industrial parks to be finalized)
Significance of CPEC
CPEC Vision & Mission is to improve the lives of people of Pakistan and China by building an economic corridor promoting bilateral connectivity, construction, explore potential bilateral investment, economic and trade, logistics and people to people contact for regional connectivity.
Area of cooperation between China and Pakistan includes;
Integrated Transport & IT systems including Road, Rail, Port, Air and Data Communication Channels, Energy cooperation, Spatial layout, functional zones, industries and industrial parks, Agricultural development & poverty alleviation, Tourism cooperation & people to people communication, Cooperation in livelihood areas, Financial cooperation, Human Resource Development
CPEC Projects
Energy
| # | PROJECT NAME | MW | ESTIMATED COST(US$ M) |
|---|---|---|---|
| 1 | 2×660MW Coal-fired Power Plants at Port Qasim Karachi | 1320 | 1,980 |
| 2 | Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa | 870 | 1,802 |
| 3 | Sahiwal 2x660MW Coal-fired Power Plant, Punjab | 1320 | 1,600 |
| 4 | Engro Thar Block II 2×330MW Coal fired Power Plant TEL 1×330MW Mine Mouth Lignite Fired Power Project at Thar Block-II, Sindh, Pakistan ThalNova 1×330MW Mine Mouth Lignite Fired Power Project at Thar Block-II, Sindh, Pakistan, Surface mine in block II of Thar Coal field, 3.8 million tons/year | 1320 | 3,470 |
| 5 | Hydro China Dawood 50MW Wind Farm(Gharo, Thatta) | 50 | 125 |
| 6 | 300MW Imported Coal Based Power Project at Gwadar, Pakistan | 300 | 600 |
| 7 | Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam | 1000 | 1,302 |
| 8 | UEP 100MW Wind Farm (Jhimpir, Thatta) | 100 | 250 |
| 9 | Sachal 50MW Wind Farm (Jhimpir, Thatta) | 50 | 134 |
| 10 | SSRL Thar Coal Block-I 6.8 mtpa &SEC Mine Mouth Power Plant(2×660MW) | 1320 | 3300 |
| 11 | Karot Hydropower Station | 720 | 1,420 |
| 12 | Three Gorges Second Wind Power Project Three Gorges Third Wind Power Project | 100 | 150 |
| 13 | CPHGC 1,320MW Coal-fired Power Plant, Hub,Balochistan | 1320 | 1940 |
| 14 | Matiari to Lahore ±660kV HVDC Transmission Line Project, Matiari (Port Qasim) —Faisalabad Transmission Line Project | 3,000 | |
| 15 | Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine | 1320 | 1,300 |
| 6 | Kohala Hydel Project, AJK | 1100 | 2,397 |
| 17 | Rahimyar khan imported fuel Power Plant 1320 MW | 1320 | 1,600 |
| 18 | Cacho 50MW Wind Power Project | 50 | |
| 19 | Western Energy (Pvt.) Ltd. 50MW Wind Power Project | 50 | |
| 20 | Phandar Hydropower Station | 80 | |
| 21 | Gilgit KIU Hydropower | 100 |
Road Rail
| # | Project Name | Length KM | Est Cost (US$ M) | Sector |
|---|---|---|---|---|
| 1 | KKH Phase II (Thakot -Havelian Section) | 120 | 1,366 | Road |
| 2 | Peshawar-Karachi Motorway (Multan-Sukkur Section) | 392 | 2,980 | Road |
| 3 | Khuzdar-Basima Road N-30 (110 km) | 110 | 80 | Road |
| 4 | Upgradation of D.I.Khan (Yarik) – Zhob, N-50 Phase-I (210 km) | 210 | 195 | Road |
| 6 | Expansion and reconstruction of existing Line ML-1 | 1,830 | 8,172 | Rail |
| 7 | Havelian Dry port (450 M. Twenty-Foot Equivalent Units) | 65 | Rail | |
| 8 | Capacity Development of Pakistan Railways | Rail |
Gwadar
| # | Project Name | Est Cost (US$ M) |
|---|---|---|
| 1 | Cross Border Optical Fiber Cable | 44 |
| 2 | Pilot Project of Digital Terrestrial Multimedia Broadcast (DTMB) | |
| 3 | Early Warning System (EWS), Pakistan Meteorological Department |
Networks
| # | Project Name | Est Cost (US$ M) |
|---|---|---|
| 1 | Gwadar East-Bay Expressway | 140.6 |
| 2 | New Gwadar International Airport | 230 |
| 3 | Construction of Breakwaters | 123 |
| 4 | Dredging of berthing areas & channels | 27 |
| 5 | Development of Free Zone | 32 |
| 6 | Necessary facilities of fresh water treatment, water supply and distribution | 130 |
| 7 | Pak China Friendship Hospital | 100 |
| 8 | Technical and Vocational Institute at Gwadar | 10 |
| 9 | Gwadar Smart Port City Master Plan | 4 |
| 10 | Bao Steel Park, petrochemicals, stainless steel and other industries in Gwadar | |
| 11 | Development of Gwadar University (Social Sector Development) | |
| 12 | Upgradation and development of fishing, boat making and maintenance services to protect and promote livelihoods of local population |