Analyzing CPEC

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A_Gupta
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Re: Analyzing CPEC

Post by A_Gupta »

http://www.dawn.com/news/1287776/impediments-to-cpec-projects
Impediments to CPEC projects
IT appears the bouquet of power-sector projects under the China-Pakistan Economic Corridor has hit a number of road blocks of late. The latest in a series of snags that these projects have run into is the Matiari to Lahore transmission line, the first private-sector initiative in power transmission that Pakistan has seen. The line is vital to the overall CPEC vision because it will carry additional power to be generated under numerous other CPEC power-generation projects in Sindh, including Tharparkar and Hub in Karachi. If the line is not built, that additional generation capacity will have no means to get to load centres in Punjab, rendering it redundant. Given the $2.1bn cost of the line, the Chinese were asked to build the project, but the tariff that they wanted was higher than what the regulator, Nepra, could allow. The net result has been a stalemate of sorts for almost a year now. In August, Nepra approved a tariff of 71 paisa per unit, but the Chinese want a tariff of 95 paisa instead, 30pc higher, and the government is spinning all its wheels to persuade the regulator to grant the revised tariff.

This is not the first time that we have seen a large CPEC project run into financial difficulties. Earlier, the complex of power plants envisioned at Gadani was scrapped because of the costs of building the jetty. Many investments in the Quaid-i-Azam Solar Park in Punjab have landed up in litigation because the government cannot honour the upfront solar tariff it offered to woo the Chinese. A large coal-fired power plant to be built in Kallar Kahar has also been scrapped due to an escalation in cost, while the Thar coal plants have landed up in litigation because of the costs of compliance with environmental regulations.

The fact that all of these were scrapped at advanced stages of execution shows the lack of foresight while highlighting the abundance of triumphant rhetoric under which these projects were being carried out.
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Re: Analyzing CPEC

Post by SSridhar »

AoA
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Re: Analyzing CPEC

Post by pankajs »

[>>quote="A_Gupta"]http://www.dawn.com/news/1287776/impedi ... c-projects
Impediments to CPEC projects
<snip> Many investments in the Quaid-i-Azam Solar Park in Punjab have landed up in litigation because the government cannot honour the upfront solar tariff it offered to woo the Chinese. A large coal-fired power plant to be built in Kallar Kahar has also been scrapped due to an escalation in cost, while the Thar coal plants have landed up in litigation because of the costs of compliance with environmental regulations.

The fact that all of these were scrapped at advanced stages of execution shows the lack of foresight while highlighting the abundance of triumphant rhetoric under which these projects were being carried out.
[<</quote]

Typical bakiness.
1. Offer a price and then claim it is too high *after* the project is completed.
2. Project started; In advanced stage of execution; money sunk and then cancelled.

They did the same to the Iranis wrt the pipeline. BTW, how are the Chinese feeling about the money sunk in these project?
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Re: Analyzing CPEC

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http://news.trust.org/item/20160919141421-tluna/
Pakistan's Punjab province government set up the 100-megawatt Quaid-e-Azam Solar Park in the Cholistan desert in March 2015 as a pilot project to lure foreign investment for an additional 900 megawatts of power.

Zonergy Limited, a Chinese-owned firm, then agreed to invest $1.5 billion to produce the power, with a promise to complete the work by June 2016.

But last December, Pakistan's National Electric Power Regulatory Authority (NEPRA) reduced the amount the country pays to buy solar electricity from 14.5 cents to 9.25 cents per kilowatt-hour, citing falling costs for solar panels and other equipment.

The cut has prompted a lawsuit by Zonergy officials, who last month brought online just 200 megawatts of the promised 900 megawatts of power in Punjab's Bahawalpur district, said Muhammad Amjad, chief executive officer of the solar park, in an interview with the Thomson Reuters Foundation.
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Re: Analyzing CPEC

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http://www.pakistantoday.com.pk/2016/08/07/business/govt-having-second-thoughts-about-building-2-1bn-matiari-lahore-transmission-line-by-itself/
Re: Matiari-Lahore transmission line:
A memorandum of understanding (MoU) was signed between the NTDC and the China Electric Power Equipment and Technology Company to set up 600 KV power transmission line from south to north. The Private Power and Infrastructure Board (PPIB) had sought a tariff of Rs 1.16 per kWh for the 25-year life of the project. The transmission line will evacuate power generated from the coal power projects in Sindh to load centers in Punjab.

The Energy Wing of the Planning Commission has opposed the proposed tariff of Rs 1.16 per unit terming it too high and has argued it should be halved. It has also objected to the proposed 17 per cent rate of return for the project, terming it too high as it is a transmission line project and not a power project, the source said.
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Re: Analyzing CPEC

Post by K Mehta »

IMO the CPEC is envisioned as a gateway to Africa for the Chinese, especially for moving military to protect "Chinese interests" in Africa. The Chinese see the rise of Africa and the opportunity it provides.
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Re: Analyzing CPEC

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Balochis protest in Quetta against Chinese intrusion in Balochistan - Shailaja Neelakantan, ToI
Balochi activists in Quetta, Pakistan, protested today against China intruding in Balochistan using the excuse of building the China Pakistan Economic Corridor (CPEC)+ , ANI reported.

"The protest demonstration was taken out by the Free Balochistan Movement (FBM)
to expose before the world the plunder of their natural resources by Pakistan and China in the name of CPEC and human rights violations by Pakistan in Balochistan," one of the protesters said to ANI.

Ever since Prime Minister Narendra Modi took up the cause of Balochistan+ in July, members of the Baloch community in Pakistan and abroad have renewed their campaign to bring to light alleged human right violations in the Pakistani province.

Today, FBM activists burnt the flags of China and Pakistan while protesting the occupation of Balochistan and the exploitation of natural resources there for building the CPEC in Baloch territory+ . The activists also accused China of helping Pakistan commit attrocities and human rights violations+ in the province.

They burned effigies of Pakistan Prime Minister Nawaz Sharif, Pakistan army chief General Raheel Sharif, and Chinese President Xi Jinping. They also raised slogans like "Stop War Crimes in Balochistan," "Stop Baloch Genocide," "Down with Pakistan" and "Down with China." And dozens of Baloch women and children who participated in the protest, blocked main roads in the area for several hours.

"Baloch people, women, students, youth, who gathered here, condemn the alliance partners of Pakistan, who are supporting it in the name of military and economy. In the name of development, Pakistani military and its partners are plundering Balochistan's resources and are trying to dismantle Balochistan's identity," a protestor said.

"Every day people are being killed in Balochistan," he added.

Starting tomorrow, Baloch activists will also protest outside the Chinese consulate in Canada against what they call a China-Pakistan nexus and alleged human right violations in the Balochistan province, a report on Balochnama website said last week.

"Pakistan is deploying 10,000 more Punjabi jihadist mercenaries to crush the Balochistan freedom movement, to enable Chinese to loot Baloch resources, in the pool of Baloch blood," the report said, adding that Beijing has, in return, agreed to give Islamabad as much as $46 billion by 2030.

FBM's goal is to raise international awareness+ about the plight of the Balochi people in Pakistan.
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Re: Analyzing CPEC

Post by chetak »

SSridhar wrote:Balochis protest in Quetta against Chinese intrusion in Balochistan - Shailaja Neelakantan, ToI
Balochi activists in Quetta, Pakistan, protested today against China intruding in Balochistan using the excuse of building the China Pakistan Economic Corridor (CPEC)+ , ANI reported.

"The protest demonstration was taken out by the Free Balochistan Movement (FBM)
to expose before the world the plunder of their natural resources by Pakistan and China in the name of CPEC and human rights violations by Pakistan in Balochistan," one of the protesters said to ANI.

Ever since Prime Minister Narendra Modi took up the cause of Balochistan+ in July, members of the Baloch community in Pakistan and abroad have renewed their campaign to bring to light alleged human right violations in the Pakistani province.

Today, FBM activists burnt the flags of China and Pakistan while protesting the occupation of Balochistan and the exploitation of natural resources there for building the CPEC in Baloch territory+ . The activists also accused China of helping Pakistan commit attrocities and human rights violations+ in the province.

They burned effigies of Pakistan Prime Minister Nawaz Sharif, Pakistan army chief General Raheel Sharif, and Chinese President Xi Jinping. They also raised slogans like "Stop War Crimes in Balochistan," "Stop Baloch Genocide," "Down with Pakistan" and "Down with China." And dozens of Baloch women and children who participated in the protest, blocked main roads in the area for several hours.

"Baloch people, women, students, youth, who gathered here, condemn the alliance partners of Pakistan, who are supporting it in the name of military and economy. In the name of development, Pakistani military and its partners are plundering Balochistan's resources and are trying to dismantle Balochistan's identity," a protestor said.

"Every day people are being killed in Balochistan," he added.

Starting tomorrow, Baloch activists will also protest outside the Chinese consulate in Canada against what they call a China-Pakistan nexus and alleged human right violations in the Balochistan province, a report on Balochnama website said last week.

"Pakistan is deploying 10,000 more Punjabi jihadist mercenaries to crush the Balochistan freedom movement, to enable Chinese to loot Baloch resources, in the pool of Baloch blood," the report said, adding that Beijing has, in return, agreed to give Islamabad as much as $46 billion by 2030.

FBM's goal is to raise international awareness+ about the plight of the Balochi people in Pakistan.

In another time and in another place, isn't it practically the same thing as what the amrekis tried to do and failed miserably after the perfidious back stabbing pakis greedily swallowed their money and turned on their white skinned benefactors??
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Re: Analyzing CPEC

Post by Amber G. »

CPEC is now being known as Colonizing Pakistan (by) Enriching China. Quite right I think.
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Re: Analyzing CPEC

Post by deejay »

Amber G. wrote:CPEC is now being known as Colonizing Pakistan (by) Enriching China. Quite right I think.
Christine C. Fair has made a presentation on exactly this topic at Pune International center a few days back. It is interesting to note that the US administration is largely silent on CPEC and in fact encourages China in some ways.

I have written a longish critique of her presentation which I hope to share in a few days.
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Re: Analyzing CPEC

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Re: Analyzing CPEC

Post by chanakyaa »

China Overseas Ports Holding Company

Gwadar Free Zone (.pdf)
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Re: Analyzing CPEC

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China may be rebalancing its India policy
Official Chinese news agency Xinhua has made no mention of Kashmir or the military tension heightening between India and Pakistan in the aftermath of the Uri attack while reporting on a meeting between Pakistani Prime Minister Nawaz Sharif and his Chinese counterpart Li Keqiang in New York recently. Xinhua merely reported that Li reiterated ‘unbreakable’ friendship of China with Pakistan and its commitment to the economic growth of the Islamic Republic. There were other reports that indicated that the Chinese PM advised his Pakistani counterpart to improve ties with India through a comprehensive economic dialogue.

On the surface, it may appear that there is nothing new in the Chinese counseling to Pakistan; indeed it has consistently refused to participate in Pakistan’s wars against India in 1965 and 1971 and in the Kargil conflict. Throughout centuries, China has fought only its own wars and not of someone else’s. At present, it has more the reasons not to get involved in any conflict zone, having overstretched itself in the South China Sea.

There is another bigger danger looming over the People’s Republic. US blue-collared workers are sick and tired of their jobs migrating to China all the time. And they want their Presidential candidates, both Donald Trump and Hillary Clinton, to put an end to this trend. Trump, known for his blunt speaking, has threatened to wipe out a record half-trillion dollars of China’s exports to the US in 2015 by imposing domestic trade barriers against Chinese goods. Clinton may do the same thing but quietly and in most devious ways. Because of low US exports to China of merely $116.2 billion in 2015, the U.S. trade deficit with China surged to $365.7 billion in 2015 – a new record, up slightly from the 2014 record of $343 billion.

All of this might have forced China to rebalance its approach to India and Pakistan. In the case of a conflict between the two subcontinental neighbors, China is aware that its investment in Pakistan would come to a naught. Beijing is already expressing nervousness over investing in its proposed $ 46 billion China-Pakistan Economic Corridor because of the insurgency in Balochistan. Beijing’s mandarins and political leaders might have originally designed CPEC and one belt one road (OBOR) to bypass India. But that plan has apparently come a cropper with India interested more in Act East Policy that has given a new window of opportunity to ASEAN and East Asian nations who are nervous in the face of Chinese assertiveness in the SCS.

China depends on exports to maintain jobs and social cohesiveness. In the face of threatened US trade sanctions, China must find ways to maintain its economic growth; if at all US sanctions come, they may knock off 2-3 percentage points from the current Chinese GDP growth rate of 6.5 to 7 percent. It’s a grim scenario for PRC.

To overcome this, State Councillor of PRC Yang Jiechi, who is supposed to be in the inner circle of Premier Li, is believed to have written a letter to CPC supremo Xi Jinping calling for a rebalancing of China’s India policy. The letter states “China’s natural trajectory will increase competition with the US. Though China is the pre-eminent power in Asia and the world is less unipolar, US military presence at our doorstep is a reality. Managing this challenge and retooling the economy for slower growth requires a radical rethink on our ties with India and its concerns over terrorism, the border dispute and its bid for Nuclear Suppliers Group membership.

“An important element of US policy towards India is a desire to balance China and the current regime in Delhi is pursuing strategic initiatives with Japan and Vietnam too. Cooperation with the US gives India military technology, nuclear and space know-how, entry to missile control regimes and benefits in environment, health and agriculture. India’s aggregate defence acquisition from the US crossed $13 billion last year. The US and India share a global strategic partnership.

There is a new realism in India’s decision to privatise and upgrade defence production. In 2014 FDI into India increased by 22% and it reached $40 billion in 2015-16. China’s economy, of course, dwarfs all comparison with its outbound FDI of $120 billion outdoing inflows in 2014. But with US support and internal reforms India is expected to retain 6% plus growth till 2020 and then grow faster than China assisted by a younger population.”

It points out that “China’s containment of India hinges on its all-weather friendship with Pakistan. Our $46 billion investment in the China-Pakistan Economic Corridor will closely enmesh interests and economies. But India’s politics and economic prospects rule out the possibility of its becoming a client state. It will not even be as accommodating as Asean countries. If the chill in political ties spreads to trade, measures like a ban on China made mobiles will hurt our economy.

“After its NSG campaign, India has adopted a more pragmatic approach as was evident when PM Modi met your excellency in Hangzhou recently. This does not mean India will abandon its quest but opens the doors to some sensible negotiation on other aspects of the relationship. The One Belt One Road (OBOR) project, critical to realising our China dream, will benefit with Indian participation if we can steer ties away from more contentious issues.

Our intelligence has often revealed the role of extremist institutions in Pakistan in motivating Uyghur terrorists. While Pakistan serves Chinese interests in bodies such as NAM and OIC, there is a pressing need to take a longer view. Not opposing India’s request to sanction Jaish-e-Muhammed leader Azhar Masood under the UN 1267 resolution will remove an irritant. Several individuals in Pakistan are in any case subject to international sanctions.

The resolution of differences over India’s NSG membership is more complex. But your predecessor did accept a waiver for India and it will be wise not to adopt a rigid posture that isolates China. It might be useful to even claim credit for an eventuality that cannot be delayed indefinitely. Similarly, the border dispute calls for more imaginative handling. Trading our expertise in SEZs to loosen India’s embrace of the US and leverage border talks will be a display of smart power.

“India is an unpredictable and inefficient democracy and economic policies can change if future elections deliver weaker regimes. It is also prone to vastly overestimating its capacity to rival China, even dabbling in the South China Sea. But India is inching towards middle-income status and its economy can reach $47 trillion PPP by 2050.
Your far-sighted OBOR programme will be a lasting legacy of your leadership. The decision to encourage high-end manufacturing and promote services is showing results. There are, however, areas of concern. We need a better understanding of mature markets and to expand in others. Cooperation with India can help sustain economic growth that is crucial to achieving the political objective of social stability.

“The ongoing strategic economic dialogue with India offers a chance to move ahead. Our industry is keen to manufacture in India. At your meeting at Tashkent in June PM Modi said ties can soar if we helped India join the NSG. We should play this to our advantage. It is time to think creatively”.
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Re: Analyzing CPEC

Post by deejay »

deejay wrote:
Amber G. wrote:CPEC is now being known as Colonizing Pakistan (by) Enriching China. Quite right I think.
Christine C. Fair has made a presentation on exactly this topic at Pune International center a few days back. It is interesting to note that the US administration is largely silent on CPEC and in fact encourages China in some ways.

I have written a longish critique of her presentation which I hope to share in a few days.
Well the article is here. All criticism welcome.

https://www.myind.net/critique-prof-c-c ... s-pakistan
panduranghari
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Re: Analyzing CPEC

Post by panduranghari »

Very well articulated DeeJay ji. Perhaps you could do slide show of your points.
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Re: Analyzing CPEC

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panduranghari wrote:Very well articulated DeeJay ji. Perhaps you could do slide show of your points.
Thank you Panduranghari Ji. Will try the PPt.
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Re: Analyzing CPEC

Post by Muppalla »

Excellent, point-by-point and polite rebuttal by Deejay. Kudos and keep it up. Here is my tweet:

https://twitter.com/VMuppi/status/785463779261898752
NRao
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Re: Analyzing CPEC

Post by NRao »

Nothing to do with CPEC.

Egypt is getting a new capital - courtesy of China

China has pledged $45 billion for this unnamed project in Egypt.

Image
ramana
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Re: Analyzing CPEC

Post by ramana »

ramana wrote:
deejay wrote:Christine C Fair had made a presentation at Pune International Center on CPEC. Here is my point by point rebuttal:

https://www.myind.net/critique-prof-c-c ... s-pakistan

All criticism and comments welcome.
Very good article that rebuts Unfair Didi point by point instead of rants like in the comments section.
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Re: Analyzing CPEC

Post by svinayak »

deejay wrote:Christine C Fair had made a presentation at Pune International Center on CPEC. Here is my point by point rebuttal:

https://www.myind.net/critique-prof-c-c ... s-pakistan

All criticism and comments welcome.


Lot of information in a good article. C Fair is part of the GOTUS establishment.
But the interest of the establishment does not connect with the interest of India on CPEC.
There are many gaps
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Re: Analyzing CPEC

Post by Falijee »

Chinese Diplomat : CPEC Is Best Thing For Pakistan ( Since Sliced Bread !)

This Chinese Diplomat on Twitter is Clarifying CPEC Better than Entire Pakistani Government
CPEC, or the China-Pakistan Economic Corridor, is being called a great many things. Game-changer, the answer to all our problems, Pakistan’s economic trump card and what not.For a project that’s so magnanimous and crucial to our nation’s future, it is a sad state of affairs that the government of the day has not done a good job of clarifying misconceptions about the mega project.Some say that project isn’t fully revealed to the public even.What was essentially the federal government’s job, to bring all stakeholders together and provide accurate, clear and up to date information about the project’s progress with time in a transparent manner, is been done by the most unlikeliest of individual.
Lijian Zhao, a Chinese diplomat based in Islamabad, Pakistan, has taken to Twitter and has been answering questions regarding CPEC and its progress in a clear manner.
He has already won his fair share of admirers and critics who wish to know more about the project and how it is transforming Pakistan little by little.Mr. Zhao believes that all things are worthy of being highlighted, based on the good work done in Gwadar. Here he tweets about an school built for Gwadar’s residents:
Small and beautiful-1st project completed under CPEC is in Balochistan (Part II): School land donated by a local citizen, built in 10 month -Muhammad Lijian Zhao
You cannot get "more Sino- Islamic" than this :D
He has demonstrated a keen understanding of foreign relations and diplomacy, as seen by his response to a Pakistani Senator here: His blow by blow account of how Gwadar is transforming with CPEC’s progress has been received well:
To ensure that Pakistanis don’t miss out with increased Chinese engagement in the region, Mr. Zhao also tweets about how Pakistan can forge deeper cultural and linguistic linkages with its all-weather friend:
And to drive home the whole point about deeper cultural and linguistic linkages between the two neighbors:
There are at least 4 Centers on Pakistan Studies in China: Peking University, Qinhua University, Fudan University, Sichuan University
It is heartening to see that a credible and reputable friend of the Pakistani people is using social media to address concerns about the CPEC. People like Mr. Zhao might just dispel misconceptions and work to ensure that the benefits of the $51 billion mega project reaches the people of Pakistan.
One Paki Reader Comment says it all : Wesy ab chinese sikh le jaye to bary paisy milain gy. :D
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Re: Analyzing CPEC

Post by IndraD »

Why The China-Pak Economic Corridor Is Unviable, And How It Could Cost China More Than Just Money http://swarajyamag.com/world/why-the-ch ... just-money
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Re: Analyzing CPEC

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Chinese Envoy Wades Into Baloch Insurgency
Twitter hot as Chinese envoy questions Sana’s ‘blood’
Deputy Chief of Mission at Chinese embassy in Islamabad Zhao Lijian created controversy over asking questions about former Senator Sanaullah Baloch’s “blood”?Mr. Baloch has been a fierce critic of the China-Pakistan Economic Corridor (CPEC) project that both countries claim would bring an economic revolution in the region. The people of Balochistan, however, think it would change the demographics of their land, from where the project is to originate.Thousands of locals have been forced to migrate to give way to the CPEC routes that link China to the Gwadar deep sea port.
The Chinese diplomat had to delete his tweet question about Mr. Baloch’s “blood” as criticism poured in from different circles.
Mr. Baloch is vocal on the CPEC’s dark side for Balochistan. In his latest piece on 4 October under titled ‘CPEC: A Baloch Perspective’, Mr. Baloch wroteTa
“This ambiguous nature of the CPEC has created more alienation than unification. So much fear has been created that none of the media persons or researchers living inside Balochistan dare write or talk about the CPEC.The entire provincial government has no convincing data to prove what the CPEC has for Balochistan.We need to be honest with ourselves – that China needed Gwadar and in return we got a multibillion dollar infrastructure, metro line, eastern route and motorways and energy projects that will be focused in particular part of Pakistan.”
The Chinese Diplomat with the curious name of Muhammad Lijian Zhao has been tasked by the "Taller Than Mountain Fliend" to defend the CPEC (Colonizing Pakistan To Enrich China)
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Re: Analyzing CPEC

Post by DavidD »

I wouldn't view CPEC purely from an adversarial perspective, though obviously I'm a bit biased. Economic development is good for everyone IMO, and here's a concrete example of how the importance of CPEC may give incentives for both China and Pakistan to curb terrorism:

http://www.scmp.com/week-asia/geopoliti ... dia-terror
HAS CHINESE PRESSURE FORCED PAKISTAN U-TURN ON ANTI-INDIA TERROR GROUPS?
Plans to disarm Jaish-e-Mohammed and Lashkar-e-Taiba come after two deadly attacks on Indian military bases – and amid Beijing’s security fears for its investments

BY TOM HUSSAIN
16 OCT 2016
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Indian paramilitary troopers look towards a building where suspected militants are thought to be hiding in Pampore, south of Srinagar, on October 11. Photo: AFP
Indian paramilitary troopers look towards a building where suspected militants are thought to be hiding in Pampore, south of Srinagar, on October 11. Photo: AFP
MORE ON
THIS STORY
Chinese President Xi Jinping sits on a swing with Indian Prime Minister Narendra Modi at a riverside park in Gujarat in 2014. Photo: Xinhua
XI JINPING
When Xi meets Modi, a little less love this time
China’s disapproval of Pakistan’s hosting of anti-India terror organisations has prompted Islamabad to quietly start working on plans to disarm these jihadist groups, amid an unusually public row between the civilian government, the all-powerful military and the media over the policy shift.

Pressure has been mounting at home and abroad for action against terror groups Jaish-e-Mohammed and Lashkar-e-Taiba after two attacks on Indian military bases this year, the last one in September in which militants killed 18 Indian soldiers in the troubled Kashmir region.

Indian people pay tribute to the 18 soldiers killed in a militant attack in Uri near the Line of Control on 18 September. Photo: AFP
Indian people pay tribute to the 18 soldiers killed in a militant attack in Uri near the Line of Control on 18 September. Photo: AFP

The government is yet to make an official announcement about expanding a nationwide counterterrorism operation, launched against Taliban insurgents and sectarian groups in 2014, to encompass India-focused jihadis. Pakistani officials have so far been telling foreign diplomats that anti-India groups have been spared because the government fears sweeping action would prompt these militants to join the Taliban insurgency.

How India-Pakistan tensions (and US-China rivalry) are raising nuclear stakes

National security policy and decision-making is a sensitive subject in Pakistan, in part because it is considered the domain of the military, which has directly ruled the country for nearly half its 69-year history and continues to exert enormous influence.

Indian soldiers guard an army base after an attack by militants in north Kashmir’s Baramulla on October 3. At least one Indian soldier was killed and another wounded in the attack. Photo: AFP
Indian soldiers guard an army base after an attack by militants in north Kashmir’s Baramulla on October 3. At least one Indian soldier was killed and another wounded in the attack. Photo: AFP

The Pakistani news media also exercises great discretion on national security matters, partly under pressure from the authorities, and has echoed government policy during the recent eruption of hostilities with India along the de facto border in Kashmir, part of which is claimed by China.

Why China is caught in India-Pakistan crossfire

The silence was broken last week by Dawn, Pakistan’s leading English-language newspaper, which reported that Foreign Secretary Aizaz Chaudhry had told a meeting of civil and military leaders that China had “indicated a preference for a change in course by Pakistan” on its handling of anti-India jihadist groups.

Masood Azhar, head of the Jaish-e-Mohammed rebel group. Photo: AFP
Masood Azhar, head of the Jaish-e-Mohammed rebel group. Photo: AFP

Chinese authorities also apparently “questioned the logic” of blocking India’s application to the United Nations Security Council to declare Jaish-e-Mohammed leader Masood Azhar a global terrorist, the country’s top diplomat reportedly told the meeting chaired by Prime Minister Nawaz Sharif.

Pakistan's Prime Minister Nawaz Sharif. Photo: AFP
Pakistan's Prime Minister Nawaz Sharif. Photo: AFP

China itself placed a three-month “hold” on the application in April and extended it for a second time last month to protect Pakistan from a likely subsequent Indian application seeking to declare it a terrorist state for failing to prevent jihadist groups from launching attacks from its soil.

China is Pakistan’s closest diplomatic ally, leading defence supplier and top foreign investor, and its views are deeply respected in Islamabad.

Pakistan’s military admits for the first time that Islamic State gained foothold in their country

But security experts said China’s support for Pakistan might have limits, even if it had strengthened during Pakistan’s tensions with India.

A Kashmiri protestor throws a tear gas shell back towards Indian police during demonstrations against the killing of Lashkar-e-Taiba leader Abu Qasim in Srinagar in 2015. Photo: AFP
A Kashmiri protestor throws a tear gas shell back towards Indian police during demonstrations against the killing of Lashkar-e-Taiba leader Abu Qasim in Srinagar in 2015. Photo: AFP

“India and China share a concern about terrorist groups in Pakistan. New Delhi worries about the anti-India groups while Beijing fears the Taliban outfits that threaten Chinese investments in Pakistan and Afghanistan,” said Michael Kugelman, senior associate for South and Southeast Asia at the Woodrow Wilson Centre, a Washington think tank.

Afghan Taliban leader preached in Pakistan for years, despite government ‘crackdown’

“In this regard, China would be shooting itself in the foot if it were to reflexively oppose Indian efforts to target terror groups in Pakistan.”

Without naming either state, China’s deputy minister for foreign affairs, Li Baodong (李保東), appeared on Monday to criticise both Pakistan and India over Azhar, the Jaish-e-Mohammed leader. “There should be no double standards on terrorism nor should one pursue its own political gains in the name of counterterrorism,” Li said in Beijing.

Indian paramilitary troopers look towards a building where suspected militants are thought to be hiding on the second day of a gunfight in Pampore, south of Srinagar, on October 11, 2016. Photo: AFP
Indian paramilitary troopers look towards a building where suspected militants are thought to be hiding on the second day of a gunfight in Pampore, south of Srinagar, on October 11, 2016. Photo: AFP

More proof of the diplomatic blowback facing Pakistan was provided by members of parliament tasked by the government to lobby politicians and think tanks in the West.

Rana Mohammed Afzal, a member of Sharif’s ruling Pakistan Muslim League-Nawaz party, complained that his efforts in France came to naught because of complaints about the activities of Hafiz Mohammed Saeed, founder of Lashkar-e-Taiba, a group responsible for the terror attack in Mumbai in 2008 that killed 166 people.

Pakistan and India should work on settling their differences behind closed doors

Saeed has been acquitted of involvement by Pakistan’s courts.

“The efficacy of our foreign policy speaks for itself when we couldn’t curtail Hafiz Saeed,” Afzal told a parliamentary committee on foreign affairs this month. “Which eggs is Hafiz Saeed laying for us that we are nurturing him?”

Hafiz Saeed, founder of Lashkar-e-Taiba. Photo: AFP
Hafiz Saeed, founder of Lashkar-e-Taiba. Photo: AFP

His remarks fed perceptions that the government and the military are at odds over action against the jihadist groups.

In its report, Dawn cited unnamed participants of the high-powered October 3 meeting as saying the foreign secretary’s advice on China’s reservations triggered an exchange of charges between the government and Pakistan’s powerful Inter-Services Intelligence (ISI) agency.

Pakistan bans journalist Cyril Almeida from leaving country over military rift report


The government denied the news report and ordered action against the writer, Dawn assistant editor Cyril Almeida, who was barred from leaving the country. “Puzzled, saddened. Had no intention of going anywhere; this is my home, Pakistan,” Almeida tweeted late Monday. The paper has stood by Almeida.

An Indian army vehicle near a building where suspected militants are thought to be hiding on the second day of a gunfight in Pampore, south of Srinagar, on October 11, 2016. Photo: AFP
An Indian army vehicle near a building where suspected militants are thought to be hiding on the second day of a gunfight in Pampore, south of Srinagar, on October 11, 2016. Photo: AFP

Security analysts close to the military and the ISI, speaking on television, said proposals had been submitted to the government for decommissioning groups like Jaish and Lashkar. Preliminary measures would include the enforcement of existing legal bans, retired Lieutenant-General Amjad Shoaib said. The next phase would focus on the de-radicalisation of their members, and the final phase would see the recruitment of “able-bodied” former militants into Pakistani paramilitary units.

Sharif is expected to approve the plan at a meeting of the government’s national security committee, including the military leadership, on Tuesday.



Tom Hussain is an Islamabad-based journalist and Pakistan affairs analyst
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Analyzing CPEC

Post by Peregrine »

IMF warns of looming CPEC bill

GROWING Chinese investments in Pakistan have the potential to lift the economy’s potential output, but the repayment obligations that come with this investment will be serious, warns the IMF in its latest and final review of the just concluded programme.

“During the investment phase, as the ‘early harvest’ projects proceed, Pakistan will experience a surge in FDI and other external funding inflows,” says the Fund in a short evaluation of the impact of CPEC related investments on Pakistan. However, the import requirements of these projects “will likely offset a significant share of these inflows, such that the current account deficit would widen” within manageable levels during these years.

The report estimates that CPEC related imports could reach 11 per cent of total projected imports by 2020, equal to just over $5.7 billion, while inflows under the corridor will touch 2.2pc of projected GDP in that year. Gross external financing needs of the country will jump almost 60pc by then, from a projected $11bn for the current fiscal year, to $17.5bn in 2020.

Pakistan will see $27.8bn in “early harvest” projects under CPEC in the next few years, with the remaining $16bn coming over a longer timeline stretching out to 2030.

“Pakistan will need to manage increasing CPEC-related outflows,” warns the Fund, once the Chinese investors begin repatriating profits, adding that the amounts involved “could add up to a significant level given the magnitude of the FDI”.

Outflows will also come in the form of repayment obligations on the loans taken from Chinese banks for these projects, which are expected to rise after 2021. Both of these, repayments and profit repatriation, “could reach about 0.4 per cent of GDP per year over the longer run”.

The Fund acknowledges that CPEC related growth could cover these payments over the longer term, but warns that this is not guaranteed.

“Reaping the full potential benefits of CPEC will require forceful pro-growth and export-supporting reforms” the report says, citing improved business climate, governance and security as necessary preconditions to enable CPEC investments to generate the resources required to cover their own associated outflows. In addition, “allowing greater downward exchange rate flexibility” will also be necessary.

The matter of rising CPEC related outflows was discussed between the Fund staff and the government during the discussions prior to the review. The government told the Fund that “additional Chinese investment over the longer term, building on CPEC as a platform, could also help cover the projected CPEC related outflows,” according to the report.

For the Fund, CPEC outflows are one of the medium to long term risks facing Pakistan’s economy. It calls for “sound project evaluation and prioritisation mechanisms based on effective cost-benefit analysis and realistic forecasts of macroeconomic and financing conditions” to help mitigate the risk.

It points out “a need to ensure transparency and accountability in project management and monitoring”, pointing specifically at the power purchase agreements being signed with Chinese IPPs, calling on the government to ensure that the cost of power purchase “remains favourable” for the distribution companies and consumers.
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Re: Analyzing CPEC

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Chabahar and Strategic alliances

Troika of India, Iran and Afghanistan signed strategic agreements on Chabahar Port located in Southern Iran. These pacts are for the development of Port as well as to provide transit and transport by laying a railway line connecting Afghanistan to India. Once this project is realised Chabahar Port will connect India to the land-locked Afghanistan, giving Kabul an alternate route to the Indian Ocean.

Moreover, India will gain full-fledged cargo handling facilities on a large scale on the Gulf of Oman. Three of these newly strategic partners will acquire not only territorial but also marine routes for the improvement of trade, sharing resources and to have secure access to the Arab states. Also one should not forget how the resource full, advantageously located central Asian states having direct route from Afghanistan, will be available to India after the development and functioning of Chabahar.

This tripartite definitely challenges the existing regional set up by upsetting China and Pakistan in their joint venture of Gawadar Port. This strategic development is undoubtedly a geopolitical game changer in regional politics. However, despite all the claims by the Indian and Iranian authorities that Chabahar is no threat or rival to Gawadar Port, still it brings various queries and challenges to the region. One cannot ignore that the development of Chabahar Port will allow India to bypass Pakistan (India will not rely on Pakistan for opening of trade routes reaching Afghanistan and then Central Asian states anymore). Through Chabahar India is also motivated to counter China’s expanding influence in Indian Ocean.

Chabahar is a city and capital of Sistan and Baluchistan Province in Iran. At 2006 census, its population was 71,070, in 13,837 families. It is officially designated as a Free Trade and Industrial Zone by Iran's government. Due to its free trade zone status, the city has increased in significance in international trade.

India’s financing and engineering assistance is not limited to Chabahar Port; it is actively developing a highway as well that leads from the Chabahar Port to Afghanistan. Chabahar Port is well-suited for linking southern ports of Afghanistan and a few Central Asian States. The port is located at the securest and closest route to Central Asia and Afghanistan market. It’s proximity to the largest energy resources in the world makes it the apple of India’s eyes.

Nevertheless, the port is well-connected to other cities of the country as well with a wide network of roads as well as air links. Through the activation of the port Iran, India and Russia would establish a multi-model transport link connecting Mumbai with Saint Petersburg, providing Europe and the former Soviet Union Republics of Central Asia access to Asia and vice versa. Iran and Afghanistan have signed an agreement to give Indian goods, leading for Central Asia and Afghanistan, preferential treatment and tariff reduction at Chabahar Port.

On the other hand, the very same region is eyeing movements of Pakistan and China as both are working fervently on plan to develop Gawadar to accommodate foreign trade of the Central Asian Republics and the Xingjian, Sichuan provinces and the Tibetan region of China. The construction of a rail and road network between Gawadar and Xingjian also seems imminent given the growing Sino-Pak economic ties. Gawadar port besides opening the large avenues for the people of Mekran engaged in fishing and agriculture will also facilitate easier and time efficient transportation. Gawadar Port has all the capacity to generate massive revenues for Balochistan. It is poised to be a trade hub, once road and rail links are established to other parts of Pakistan as well as Afghanistan and Central Asia.

On the contrary, India is ready to invest more than Rs 1 lakh crore. Iran is offering gas to India at $2.95 per mmBtu to set up urea plant at the Chabahar port in Iran. India is negotiating the gas price and has demanded it at $1.5 per mm Btu rate. The rate offered by Iran is less than half the rate at which India currently imports natural gas from the spot or current market. India, which imports around 8-9 million tons of the nitrogenous fertilizer, is negotiating for a price of $1.5 per mmBtu with the Persian Gulf nation in a move which if successful will see a significant decline in the country's Rs 80,000 crore subsidy for the soil nutrient.

Gawadar Port will have to face stiff competition from Chabahar. It is still not as operational as Chabahar. The supporting structures at Gawadar Port are still not existent. Even after the lapse of many years, there is no mentionable economic activity at this port. Several projects such as 950-km railway and 900-km motorway to link with railway and highway of the country have so far remained only in files. The 200-km branch road to link coastal road to the Indus Highway at Ratto-Dero is still not developed. There are no internal roads and services of water. The very interesting trio of Chabahar and duo of Gawadar port forces one to look into the strategic doctrine of India.

Analysing India’s timely and tactical move of investing in Chabahar one can recall the great strategic thinker of his times who has always been source of inspiration for India’s policy, Kautilya. Indian Political tradition (Kautilya’s Raj-mandala theory) explains the very basis for this new trio ‘Your neighbor is your natural enemy and the neighbor’sneighbor is your friend". Kautilya proposes a Raj Mandala or Secular Power Realm, a monarchical balance-of-power arrangement for the utilization of regional power within and between states. Rajmandala or Mandala places the king in center of the circle (mandala) making other actors function around.

As India declares itself a regional hegemon so it very aptly adopts the policy of no nation should be defended solely along its borders. This can be done only when India extends its gaze out to its strategic frontiers that extend from Suez Canal in the west to the South China Sea and beyond in the east as noted by Rakesh Chopra while analyzing Kautilya’s influence in 21st century India.

China and India – Asia’s two economic giants of the region traces back their tussle since decades. India being a democracy, technologically advanced country could not invite as much as global influence as its rival China. China holds advantage against India in its perception of power globally and undoubtedly this perception helps her in exercising its power. Both nuclear armed states are now developing their marine strength. These new developments generate the debate of returning of Mandalas in 21st Century. While talking about Kautilya’s Raj mandala one cannot ignore the Chinese mandala of middle kingdom period which explains ‘China is the center of global civilisation and all the nations must acknowledge its political and cultural supremacy by paying tributes’. This explains today’s behavior of this giant that it will not allow any other nation, at least in Asia, to be as important as it is.

However, through these pacts, India, Iran-Afghanistan challenges the unbridled, unopposed strategic partnership of China and Pakistan in the region and shall definitely disturb the balance of power. Though, this balancing of power doesn’t seem to be correct allegation as India is now not balancing its power; India is proliferating its power. Undoubtedly, Chabahar will prove not only an economic rival to Gawadar but also will affect the security of the region one way or the other.

The establishment of Free-Trade and Economic Zones and Export Processing Zones (EPZs) would, surely, attract foreign investment that will be an impetus to the development of Balochistan in particular and of the whole Pakistan in general.
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Re: Analyzing CPEC

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‘CPEC could become another East India Company’ - DAWN
Lawmakers from the upper house on Monday expressed the fear that the China-Pakistan Economic Corridor (CPEC) could turn into another East India Company if the country’s interests were not actively protected.

“Another East India Company is in the offing; national interests are not being protected. We are proud of the friendship between Pakistan and China, but the interests of the state should come first,” Senator Tahir Mashhadi, chairman of the Senate Standing Committee on Planning and Development, said when some committee members raised the concern that the government was not protecting the rights and interests of the people.


The East India Company was the British trading mission sent to India, which became the precursor to the British colonial presence in the subcontinent, eventually gaining power and overthrowing the Mughals who ruled India at the time.

Following a briefing by Planning Commission Secretary Yousuf Nadeem Khokhar, a number of committee members voiced their fears over what they perceived as the utilisation of local financing for CPEC projects, instead of funding from the Chinese or any other foreign investment. They also expressed concern over the fixing of power tariff for CPEC-related power projects by the Chinese.

Since only one of three Pakistan Muslim League-Nawaz (PML-N) members of the committee was present at the meeting, most of this criticism went unanswered. Even Senator Saeedul Hassan Mandokhail, the lone PML-N senator in attendance, endorsed the committee chairman’s complaints.

The meeting was informed that a major portion of the CPEC depended on local finances rather than Chinese investment.

“It will be very harmful for us if we have to bear the entire burden; will this [project] be a national development or a national calamity? Whatever loans taken from China will have to be paid by the poor people of Pakistan,” Mr Mashhadi observed.

Highlighting the status of CPEC-related power projects, the Planning Commission secretary said that the Matiari-Lahore transmission line project had “not been scrapped” and was being pursued by its Chinese sponsors.

Recently, the National Energy Power Regulatory Authority (Nepra) had approved tariff for the project, while the government’s Private Power Infrastructure Board had filed a review petition on the tariff in order to address the sponsors’ concerns.

At this, Senator Usman Khan Kakar pointed out that Nepra had fixed the power tariff for the project at 71 paisas/unit, while Chinese investors were demanding 95 paisas/unit.

“The government has filed an appeal before Nepra, seeking the increase
despite the fact that the burden will be borne by poor consumers,” he said.

The secretary also informed the committee that the Gadani power plant complex had been shelved due to the lack of a dedicated jetty.

He also said that the 6,000MW project was not part of the CPEC.

Senator Kakar immediately reacted, saying that despite the fact that the project was not part of the CPEC, Chinese Ambassador Sun Weidong had recently claimed that the Gadani power plant had not been scrapped and was indeed a part of the corridor. “Why is this project, which does not even exist, being counted in our account?” he asked.

He said that the infrastructure being established in Gwadar would only benefit the Chinese and Punjab governments, not the local community. “The people of Balochistan will only get one benefit from this project, which is the water supply,” he said, adding that no electricity or railway projects had been planned for Balochistan under the CPEC.

Senator Mandokhail said that a sense of deprivation was being instilled in smaller provinces. “We do not want the CPEC at the cost of the federation,” he added.

Since Minister for Planning and Development Ahsan Iqbal was not present in the meeting, the senator urged the secretary to advise him to ensure the integrity of the federation.

Senator Mandokhail also accused the Planning Commission of prioritising Balochistan very low on its list, given that it has not representation in the commission itself.

Jamaat-i-Islami Emir Senator Sirajul Haq said that like certain other parts of the country, Fata and AJK were also being neglected in the CPEC. “There is nothing for both areas in the CPEC,” he said and suggested that a 35km road was built to link Muzaffarabad to the CPEC so that the people of AJK could also reap its benefits.
I think that the Chinese forced the CPEC project down the throat of the Pakistanis through the Pakistani Army. The PA has two major objectives. One, make money (and that is why it wants the project under its control rather than being under the civilian control) and secondly use China to inflict more cuts on India as it increasingly finds Indian resistance and it needs a strong international support for its terrorism activities. China is now a recognized supporter of Pakistani terrorism.
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Re: Analyzing CPEC

Post by Prem »

Not to mention that Chinese electricity/ power generation machinery have life span of 23 months. Paki will be repeatedly forced to pay for replacement with Zar, Zorus and Xiameen to Peking Pakistan Purchase Company.
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Re: Analyzing CPEC

Post by Falijee »

Compare the euphoria of (this "game changer" project ) a few months ago, with the ground reality that is being discussed these days (CPEC would become another "East India Company "! ).
IMO, Beggars (Paki ) can't be choosers ; therefore this is the only game in town for them .
1. Pakistan is "hoping" that through this project , Chinese will "protect" Balochistan for them
2. Every Aam Abdul and his aunt wants "in" on the CPEC , without understanding the long-term colonizing / financial impact of this project.
3. Once the different construction projects are finished, the trickle down effect on the overall Paki economy will be insignificant .
4. The military will gain but this will breed additional resentment against the faujis
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Re: Analyzing CPEC

Post by Prem »

Without Iran or Afghanistan's cooperation,CPEC is just Chinese Paki-pet-peck project. It will dilute Persian influence in CAR and put Afghanistan in permanent slavery of Pakistan thus not in the interest of both.It is a military project and have alrteady widen the fissures among different Paki regions plus making india move to recover POK territory.
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Re: Analyzing CPEC

Post by IndraD »

Yesterday Chinese ambassador to Pk went running to Imran Khan (late in night) after it was leant Imran's party is planning an Islamabad shut down and taking over the capital and important places over Shareef's failure on Kashmere (what else) and lack of accoutability.
Chinese envoy was assured by Imran that CPEC is a game changer and has full spport of his party, there is no way CPEC will ever be compromised in Pk. And there is no plan of shutting down CPEC. http://timesofindia.indiatimes.com/worl ... 934983.cms
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Re: Analyzing CPEC

Post by prashanth »

NRao wrote:Nothing to do with CPEC.

Egypt is getting a new capital - courtesy of China

China has pledged $45 billion for this unnamed project in Egypt.
$ 15 billion to B'desh, $51 billion to pak, and now $45 billion to Egypt. What is the source of China's income? And how much of it is invested back into human resource development?
This link shows top 10 exports of China in 2015.

http://www.worldstopexports.com/chinas-top-10-exports/

I see that electronics goods amounted to $ 600 billion. This is one area we cannot beat them, and need not try to. Electronics industry is one of the most damaging ones for environment. Second comes Machines, engines and pumps worth $364 billion . This is doable with companies like L&T, Kirloskar, Godrej etc. Next 8 products are already manufactured in India. Time to start giving China some serious competition economically.
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Re: Analyzing CPEC

Post by ranjan.rao »

IndraD wrote:Chinese envoy was assured by Imran that CPEC is a game changer and has full spport of his party, there is no way CPEC will ever be compromised in Pk. And there is no plan of shutting down CPEC.
of course as long as he gets his malai....may be got left out in the first place and is negotiating his cut
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Re: Analyzing CPEC

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RAW, NDS, ETIM and TTP develop nexus to sabotage CPEC project: Pakistan IB Chief - DT
The intelligence bureau on Tuesday disclosed that Indian spy agency RAW and Afghan agency NDS have formed a nexus with banned Tehreek e Taliban and East Turkmenistan Islamic Movement (ETIM) to damage the China Pakistan Economic Corridor. {How convenient to blame all inconvenient people?}

The chief of intelligence bureau Aftab Sultan told the Senate Standing Committee chaired by Senator Tulha Mehmood that the intelligence bureau had foiled designs of a number of terrorists and arrested over 5,000 terrorists and their supporters during intelligence-based operations in the country. He revealed that some agents of RAW and NDS were also among the arrested persons.

The nexus of TTP, ETIM, RAW and NDS wanted to destroy the CPEC and IB was playing an important role in foiling their nefarious designs against this monumental project. “These terrorist groups are a big threat for China as well due to CPEC,” intelligence bureau DG said.

After the Zarb e Azb operation, the ETIM shifted from Wazirstan to Afghanistan and the Afghan government did not take any action against them. We have been tasked with the security of CPEC and we are providing security to Chinese nationals working on CPEC and non CPEC projects as well. Special Armed Forces have also been trained and soon would be deployed for CPEC’s security, Aftab Sultan said.

The intelligence bureau chief disclosed that factions of TTP were being used by RAW and NDS for terrorism activities in Pakistan.
“We arrested many terrorists who confessed that they work for them, and they were willing to work for whoever gave them the most money,” said the bureau chief. “RAWs’ agent Kulbhoshin Yadev’s statements and confessions are well known, while India failed to provide any single evidence of the Uri attack, even though we asked for it time and again. If India provides us evidence, we are still ready to investigate that incident.”
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Re: Analyzing CPEC

Post by IndraD »

Pakistan's satellite, 4,500 special security to protect CPEC (this will be on top pf 6000 regular soldiers from PLA :eek: ) http://www.dawn.com/news/1290894/suparc ... nitor-cpec
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Re: Analyzing CPEC

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SC to determine legal status of GB - DT

I post it here because GB is *THE* tenuous link for the entire CPEC project. GoI must warn Pakistan and China about altering the status of GB reiterating India's claims on the entire J&K.
The Supreme Court on Wednesday appointed two counsel as amicus curiae for determining the legal and constitutional status of Gilgit-Baltistan (GB), jurisdiction of GB's Supreme Appellate Court.

Barrister Aitzaz Ahsan and Khawaja Haris Ahmed will assist the court in this regard.

The top court, however, asked the government to submit its comments over the legal status of GB.

A two-member bench headed by Justice Saqib Nisar took up six different petitions filed by Supreme Appellate Court Bar Association General Secretary Muhammad Iqbal through his counsel Rai Mohammad Nawaz Kharal, vice chairman Gilgit Baltistan Bar Council, Shaheen Air International and others.

During the course of hearing, the bench also hinted to appoint a larger bench to hear the matter in view of importance of the issues raised in the petitions.

Justice Nisar observed that these legal issues would be heard with patience and determination, adding that firstly questions will be framed and then larger bench could be constituted for adjudication.

He questioned Attorney General of Pakistan (AGP) Ashtar Ausaf Ali whether the GB appellate court could pass order to any department, which is situated in Pakistan.

To which, the AGP requested the court to grant him time for seeking instructions from the government in this regard.

Haris said the matter is important in its nature and any upcoming judgement over it will have far-reaching implications on national and international level.

Aitzaz Ahsan said the issue is not only important but it is also sensitive in nature as GB is not part of Pakistan under Article 1 of the constitution while GB Empowerment Self Governance Ordinance 2009 is also perplexed.{China is forcing Pakistan on this issue}

He added that the legal status of the ordinance is also in question as it was issued through a presidential order, however, Article 184 is also applicable in the areas of GB; therefore, the court can pass any direct order.

One of the counsel Nawaz Kharal pleaded to declare Statutory Regulatory Order (SRO) No. 786 (1) of Sept 9, 2009 GB Empowerment and Self Governance Ordinance 2009 unlawful which is contrary to the May 1999 Supreme Court judgement in the Al-jihad Trust case.

Recalling the 1999 verdict which had held the two million people of GB as the citizens of Pakistan, the counsel highlighted that the judgement had ordered the government to make proper administrative and legislative measures ensuring the GBians to enjoy their rights as guaranteed in the constitution.

But the government has failed to comply with the 1999 judgement though after a decade SRO 786 (1) of 2009 was issued by KANA during the PPP tenure. The same SRO was later amended to appoint the minister as the governor of GB.
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Re: Analyzing CPEC

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Pak IB claims Indian, Afghan counterparts looking to sabotage CPEC http://www.business-standard.com/articl ... 254_1.html
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Re: Analyzing CPEC

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CPEC snags on solar - DAWN
ONE of the more exciting of the CPEC power projects to be undertaken on priority in Pakistan was the giant solar park to be built in Bahawalpur. It was part of the Quaid-i-Azam Solar Park and was part of what they call the ‘early harvest’ projects, meaning the first to come online.

The first MoU for the project was signed in August 2013 between the governments of China and Punjab. The provincial government owned the project, and in the first solar power plant that was inaugurated under it, the provincial government was also a joint venture partner with a Chinese contractor.

Later in July 2014, another MoU was signed between the government of Punjab and private Chinese developer that expressed an interest in setting up a 900MW solar plant in the same park. This MoU was signed in the presence of the prime minister in Beijing.

Things moved fast initially, due to interest in the project at the top. The Project Commitment Agreement was signed a week later, again witnessed by the prime minister and both sides agreed to a tariff of Rs14 per unit outside of taxes, along with the timeline. In August it was placed on the early harvest list and prequalification documents were submitted, and a letter of interest from the Punjab Power Development Board was issued in September.

On Jan 22, 2015, the power regulator and tariff setting body Nepra announced a revised upfront tariff for solar projects at Rs14 per unit for the first 10 years of operation, and this tariff was notified in the official gazette on July 1, 2015, with the stipulation that this offer would be valid for a period of six months, until December 2015. The project sponsors applied for a generation licence under this tariff regime.
In December, the tariff expired, and Nepra determined a new, lower tariff for solar energy. The project sponsors went into litigation, and won an order from the Lahore High Court that Nepra should hold another round of tariff hearings for this particular project, which was approved to enter under the old tariff regime, and that the grounds on which its application was rejected were baseless. The sponsors are now waiting for a date when Nepra will hold the next hearing, and matter will begin all over again.

This is the tale of one CPEC project. It’s easy to assign blame when reading the simple facts of the story, but it must be remembered that the original upfront solar tariff that Nepra had granted was one of the highest in the world, and was based entirely on cost structures provided by one party — the QAS (Pvt) Ltd, which is a joint venture between the government of Punjab and a Chinese group.

That party is now enjoying the benefits of an extraordinary Rs17 per unit tariff, where the competitive price of solar in the world today is closer to Rs4. Meanwhile, all the other parties that were in the queue for that tariff are today licking their wounds.
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Re: Analyzing CPEC

Post by SSridhar »

China is perpetrating a huge fraud on Pakistan and has bribed the 'Establishment' into that.
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Re: Analyzing CPEC

Post by K Mehta »

X post from PEST watch thread - CPEC Special

Another CPEC project- flagship Gwadar now not sailing smooth

In revised offer, China wants to work as construction contractor in Gwadar- tribune pk
China has withdrawn its offer of setting up a liquefied natural gas (LNG) terminal at Gwadar Port on the build-and-operate model and now wants to work as an engineering, procurement and construction (EPC) contractor for the project.

“In response to the revision of offer by China, Pakistan will own and operate the terminal and award EPC contract to the Chinese company working on the Gwadar LNG pipeline project under a government-to-government arrangement,” an official told The Express Tribune.

The Exim Bank of China will provide financing at the rate of London Inter-bank Offered Rate (Libor) plus 2%
Edit- 1st article already posted by SSridhar so snipped.
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