JCC to take up financing terms and conditions on 9th

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ISLAMABAD: Federal Minister for Planning, Development and Reform Khusro Bakhtyar Friday said that financing terms and conditions of mega projects relating to railway, oil and gas, industrial zones and energy under the China-Pakistan Economic Corridor (CPEC) would be discussed in the upcoming 9th Joint Cooperation Committee (JCC) meeting scheduled in Islamabad on November 6.

While addressing a news conference after a meeting of Cabinet Committee on CPEC, the minister said, “We are going to inaugurate power plant project of 300 MW in Gwadar. We will discuss the financing terms and conditions of ML-I railway project, master plan of Gwadar, Western Route, Islamabad-Quetta link road and construction of road section from DI Khan to Zhob, investment of Chinese companies in Pakistan Steel Mills, projects relating to capacity building of oil refinery and establishment of storage system of gas, mineral projects, construction of housing, and Karachi Circular Railway project etc.”

Federal Minister for Railway Sheikh Rashid, Minister for Energy Omar Ayub Khan, Advisor on Petroleum Nadeem Babar and Adviser to Prime Minister on Information and Broadcasting Firdous Ashiq Awan were also present on this occasion.

Khusro Bakhtyar said that a draft of incentives package for national and international investors has been prepared which would be presented in the 9th JCC meting.

He said that ML-I railway project of $ 8.5 billion to $ 9 billion would bring improvement in Pakistan Railway system and play a pivotal role to improve Gross Domestic Production (GDP) of the country. He said that progress and development of Pakistan is directly linked to ports and costal belts, hence special focus is being given to develop these areas.

He said that Pakistan Tehreek-e-Insaf (PTI) government had uplifted the CPEC to new heights as there has been multifold increase in its volume to promote development and progress of the country. He said that a memorandum of understanding (MoU) would be signed for joint venture for the projects of Special Economic Zones (SEZs).

He said that a financing committee comprising the representatives of both sides of the governments of China and Pakistan will negotiate the terms and conditions of financing of ML-I Railway project. He said that necessary infrastructure for oil and gas and projects about energy sector would be discussed in the JCC meeting. He said, “We prioritized some development projects of all provinces, AJK and Gilgit-Baltistan which would also be discussed in the JCC meeting.”

The minister said, “We are bringing industrialists of both countries for industrial cooperation and business to business framework.”

Sheikh Rashid Ahmed said that ML-I Railway project would consist of 1872 Km without any railway crossing, and train would run with the speed of 160 km per hour. He said that one hundred and thousand people would get job with this project.

About Karachi Circular Railway project, he said, “The project consists of 43 km land out of which we have got 38 km land vacated while reaming would be regained.” He said that Pakistan Railways is also ready to provide the land to the affected people if Supreme Court allows the department and the provincial government promises to construct homes for the affected people there.

Rashid said Main Line-I (ML-I) project between Karachi to Peshawar is the backbone of the CPEC which would bring revolution not only in Pakistan Railways but in the history of the country.

He said after 14 years in the country’s history, the dream of ML-I is going to become a reality.

About the recent fire incident in Tezgam Express, Rashid said Pakistan Railways has announced compensation of Rs 1.5 million each for those died. Besides this, the families of the dead passengers would also be given Rs 500,000 each on behalf of the Prime Minister, he added.

He said, “Nullah Lai and ML-I projects are my dream and after the completion of these two projects, I’m ready to retire.”

Minister for Energy Omar Ayub Khan said that energy sector depends on imported oil and LNG. He said, “Cost of our 60 to 70 imports are spent on importing fuel.” He said, “We want 80 percent energy mix in renewable resources, including 30 percent hydropower, 10 percent Thar coal, 30 percent wind power and 10 percent nuclear power by 2030.” He said that the government wants to reduce Current Account Deficit by achieving this goal. He said, “We would discus with China projects to produce diesel from coal in Thar.”

Special Assistant to Prime Minister Nadeem Babar said the government is going to auction of 35 oil and gas blocks in next 12 months. He said, “In the first phase we are going to auction 10 to 12 blocks for exploration of oil and gas.”

He said that road shows in this regard have been held in Europe, Russia and Middle East to attract investors to invest in oil and gas blocks. He said during the JCC, Chinese side will be asked to invest in up-gradation of oil refineries as well as construction of new ones to increase refining capacity of the country. He said, “We would discuss SN Pipeline project with China.”

Special Assistant on Information and Broadcasting Dr Firdous Ashiq Awan said all economic indicators of the country are moving in positive direction due to prudent decisions made by incumbent government. She said that economy of the country is on the right track due to hard working of the Prime Minister and his team while the corrupt are criticizing the policies of the government for petty political gains.

She said the statement of President of World Bank about Pakistan is an eye opener for the opposition as he said economy of the country is moving in right direction.

Meanwhile, according to a handout issued by the Ministry of Planning, the Cabinet Committee on CPEC decides to commence financing discussion over ML-1 project with China. A Draft Act of CPEC Authority would also be presented to federal cabinet for approval. During the meeting, ML-1 railway project was discussed in detail including formation of a high-level financing expert group to deliberate on loan modalities.