ISLAMABAD: The Western media’s recent reports regarding China Pakistan Economic Corridor (CPEC) are based on incorrect information, distorted facts and one-sided opinions of individuals.
It is hereby clarified that China Pakistan Economic Corridor (CPEC) is a flagship and most active project of Belt and Road Initiative where 22 projects of worth $ 28 billion have been actualized over the past 04 years, said a statement issued by FBR here today.
The project could not be compared with Chinese overseas investment in Sri Lanka or Malaysia as frameworks and financial modes of CPEC are altogether different in nature. The CPEC finances are divided into government to government loans, investment, and grants. The infrastructure sector is being developed through interest-free or government concessional loans.
Gwadar Port is grant-based or investment which means the Government of Pakistan does not have to pay back the invested amount for the development of the port. Energy projects are being executed under Independent Power Producers (IPPs) mode and finances are mainly taken by the private companies from China Development Bank and China Exim Bank against their own balance sheets, therefore, any debt would be borne by the Chinese investors instead of any obligation on part of the Pakistani government.
Pakistan has opted for Chinese investment under CPEC due to the favorable financing arrangements. China stepped forward to support Pakistan’s development at a time when foreign investment had dried up, and economic activities were being crippled by energy shortages and infrastructure gaps. CPEC is not imposing any immediate burden with respect to loans repayment and energy sector outflows. The CPEC’s outflows would start from the year 2021 and spread over 20 to 25 years with a maximum in the year 2024 and 2025. The resultant benefits of these investments to the Pakistan economy would far outweigh these outflows.
CPEC has provided enormous opportunities for Pakistan to grow economically. It is an engine for economic growth and is expected to increase Pakistan’s GDP growth by 2 percent to 3 percent. CPEC has also facilitated in overcoming crucial energy, transport infrastructure, and supply chain bottlenecks. Under CPEC, development of Gwadar would ensure the strengthening of maritime sector particularly the coastal tourism and local fishery industry thereby benefiting the local communities.
Pakistan has repeatedly stated that it is fully committed to CPEC, which enjoys complete consensus among all institutions and political forces in Pakistan. It is a key to the future of Pakistan’s socio-economic development.
Within the broad parameters of the already approved CPEC framework, the present government, with the mutual consultation of Govt. of China is broadening the base and expedite the pace of CPEC. A mechanism is being developed to include third-party participation in CPEC. Socio-economic development and poverty alleviation are being included in CPEC and a separate working group is being established to fast track this dimension of the mega project. Gwadar continues as prioritized and being developed as a standalone project and a transshipment hub based on blue economy principles. Industrialization under CPEC has already been fast-tracked and 04 SEZs would hit the ground soon.
Ankara train crash leaves nine dead
ANKARA: Nine people were killed and nearly 90 injured after a high-speed train crashed into a locomotive in the Turkish capital on Thursday, officials said, becoming the latest rail disaster to hit the country.
The accident comes less than six months after 24 people were killed in a train crash in northwestern Turkey in a series of several fatal accidents in recent years.
Transport Minister Cahit Turhan told reporters that three of those killed were operators of the train. One of the victims died in hospital, he added.
Among those killed was a German citizen, a source in the Ankara governor’s office told AFP, confirming reports in German media.
The Ankara public prosecutor said 86 people were injured. Health Minister Fahrettin Koca earlier said 34 of those injured were still in hospital for treatment.
Two were in a serious condition, Koca added on Twitter.
The fast train had been on its way from Ankara’s main station to the central province of Konya. According to Hurriyet daily, there were 206 passengers on board.
Turkish President Recep Tayyip Erdogan said three people had been detained. In a speech in Ankara, he vowed those responsible would be held to account.
The three were employees of the Turkish state railways agency who were detained over suspected negligence, according to state news agency Anadolu.
Ankara governor Vasip Sahin said the accident happened “after the 6.30 high-speed train to Konya hit a locomotive tasked with checking rails on the same route.”
Turhan said the accident took place six minutes after the train left Ankara as it entered the Marsandiz station.
The governor said, “technical investigations” were underway to find out exactly what caused the crash in Yenimahalle district.
The capital’s chief prosecutor launched an investigation into the crash, Anadolu said.
Images published by Turkish media showed some wagons had derailed and debris from the train scattered on the track, which was covered in snow.
The windows of one wagon were completely broken while another wagon had been smashed after hitting the footbridge, which also collapsed, an AFP correspondent at the scene said.
The correspondent saw at least seven bodies taken away as rescue workers searched the blue and white wagons covered with debris.
Turkish Red Crescent relief workers distributed blankets and tea to the survivors, who were gathered on a road near the scene that had been blocked to traffic.
A female witness whose name was not given told NTV broadcaster that the passenger train had not yet increased its speed when the crash happened.
A relative of one of those aboard the train told the channel that some passengers had broken windows and then safely exited the wagons.
One of those killed was Berahitdin Albayrak, a science lecturer and former vice-chancellor at Ankara University, the institution said on Twitter.
Later trains from Konya to Ankara and vice versa were canceled.
ADB to provide $7.528 bn to Pakistan
ISLAMABAD: The Asian Development Bank (ADB) has planned to support Pakistan with lending of $7.528 billion for various development projects during the next three years.
In its new Country Operations Business Plan (COBP) for Pakistan 2019-21 revealed on Thursday, the ADB has proposed a sovereign lending program for next three years worth $7.528 billion, consisting of $5.37 billion from regular Ordinary Capital Resource (OCR) lending and $2.158 billion from Concessional COR Lending (COL). COL includes a carryover of $600 million from 2018. The non-lending program for 2019–2021 is $21.7 million, including transaction technical assistance for various pipeline projects. An amount of $2.245 billion in ADB loan financing is allocated for the energy sector, which is 29.8 percent of the total pipeline for 2019–2021.
The pipeline includes a multi-tranche financing facility for Transmission Strengthening (tranche 1) for National Transmission and Dispatch Company (NTDC), Hydropower Development Project for Water and Power Development Authority (WAPDA), and support for the Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project. For the transport sector, some $1.394 billion of ADB loan financing for the sector (18.5% of the total pipeline) have been allocated for the transport sector. The pipeline includes the Sustainable National Highway Project and the Sindh Hyderabad Southern Bypass Project.
ADB also proposes support for the revitalization of Pakistan Railways to improve transport sector sustainability, including exploring non-conventional financing arrangements. For agriculture, natural resources, and rural development, ADB has allocated $794 million in loan financing to the sector (10.6% of the total pipeline). The pipeline includes the Greater Thal Canal Irrigation Project, the Kurram Tangi Water Resources Project, and the Smaller Cholistan Water Resources Development Project. Similarly, for water and other urban infrastructure and services, the ADB has allocated $470 million in ADB loan financing (6.2% of the total pipeline). The pipeline includes a cross-sector project readiness facility for Punjab and the Punjab Cities Improvement Project. ADB has also allocated $2.4 billion in loan financing to the finance and public sector management sectors (31.9% of the total pipeline).
The COBP, 2019-2021, includes new projects such as trade and competitiveness program (subprogram 1) in 2019; financial markets development in 2020; infrastructure financing and PPPs in 2021; as well as the second phase of support for the Benazir Income Support Program in 2020. The education and health sectors pipeline includes $225 million in loan financing (3.0% of the total pipeline). ADB’s re-engagement in education and health sectors includes $175 million for projects on secondary education in Sindh and improving workforce readiness and skills development in Punjab, and $50 million projects to improve quality of health care services in Khyber Pakhtunkhwa (KP).
ADB will also provide technical assistance across sectors to help project implementation and to generate and disseminate knowledge products to support policy and project development, as well as to enhance project quality and readiness. Pakistan, a group B developing member country, is eligible for regular OCR lending and concessional OCR lending (COL). The indicative resources available during 2019–2021 for sovereign operations amount to $5,712 billion, comprising $4.29 billion for regular OCR lending and $1.422 billion for COL. The final allocation will depend on available resources, project readiness, project performance and debt distress rating of the country among others. ADB’s non-sovereign operations will supplement these resources. ADB will also explore co-financing from other sources and seek financing from the regional pool under concessional resources and regular OCR for regional cooperation and integration.
Modi loosing from traditional stronghld!
NEW DEHLI: India’s ruling party looked set to lose power in at least one of three traditional stronghold states releasing election results on Tuesday, in a blow to Prime Minister Narendra Modi ahead of national polls in 2019.
Early election results in the central state of Chhattisgarh indicated the main opposition Congress party of Rahul Gandhi would win 59 seats compared to just 11 for Modi’s Bharatiya Janata Party.
The Hindu nationalist BJP has ruled Chhattisgarh for the past 15 years.