China Pakistan Economic Corridor CPEC

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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 NAMEMWESTIMATED COST(US$ M)
12×660MW Coal-fired Power Plants at Port Qasim Karachi13201,980
2Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa8701,802
3Sahiwal 2x660MW Coal-fired Power Plant, Punjab13201,600
4Engro 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/year13203,470
5Hydro China Dawood 50MW Wind Farm(Gharo, Thatta)50125
6300MW Imported Coal Based Power Project at Gwadar, Pakistan300600
7Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam10001,302
8UEP 100MW Wind Farm (Jhimpir, Thatta)100250
9Sachal 50MW Wind Farm (Jhimpir, Thatta)50134
10SSRL Thar Coal Block-I 6.8 mtpa &SEC Mine Mouth Power Plant(2×660MW)13203300
11Karot Hydropower Station7201,420
12Three Gorges Second Wind Power Project Three Gorges Third Wind Power Project100150
13CPHGC 1,320MW Coal-fired Power Plant, Hub,Balochistan13201940
14Matiari to Lahore ±660kV HVDC Transmission Line Project, Matiari (Port Qasim) —Faisalabad Transmission Line Project3,000
15Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine13201,300
6Kohala Hydel Project, AJK11002,397
17Rahimyar khan imported fuel Power Plant 1320 MW13201,600
18Cacho 50MW Wind Power Project50
19Western Energy (Pvt.) Ltd. 50MW Wind Power Project50
20Phandar Hydropower Station80
21Gilgit KIU Hydropower100

Road Rail

#Project NameLength KMEst Cost (US$ M)Sector
1KKH Phase II (Thakot -Havelian Section)1201,366Road
2Peshawar-Karachi Motorway (Multan-Sukkur Section)3922,980Road
3Khuzdar-Basima Road N-30 (110 km)11080Road
4Upgradation of D.I.Khan (Yarik) – Zhob, N-50 Phase-I (210 km)210195Road
6Expansion and reconstruction of existing Line ML-11,8308,172Rail
7Havelian Dry port (450 M. Twenty-Foot Equivalent Units)65Rail
8Capacity Development of Pakistan RailwaysRail

Gwadar

#Project NameEst Cost (US$ M)
1Cross Border Optical Fiber Cable44
2Pilot Project of Digital Terrestrial Multimedia Broadcast (DTMB)
3Early Warning System (EWS), Pakistan Meteorological Department

Networks

#Project NameEst Cost (US$ M)
1Gwadar East-Bay Expressway140.6
2New Gwadar International Airport230
3Construction of Breakwaters123
4Dredging of berthing areas & channels27
5Development of Free Zone32
6Necessary facilities of fresh water treatment, water supply and distribution130
7Pak China Friendship Hospital100
8Technical and Vocational Institute at Gwadar10
9Gwadar Smart Port City Master Plan4
10Bao Steel Park, petrochemicals, stainless steel and other industries in Gwadar
11Development of Gwadar University (Social Sector Development)
12Upgradation and development of fishing, boat making and maintenance services to protect and promote livelihoods of local population