CPEC concerns: K-P drops objection to route alignment

ECNEC conditionally approved Rs124.2b western route in April

ISLAMABAD: The Khyber-Pakhtunkhwa government on Monday withdrew its objections to the alignment of the China-Pakistan Economic Corridor (CPEC) western route, facilitating the final approval of the 285km-long route by the Executive Committee of National Economic Council (ECNEC).

In April this year, ECNEC had conditionally approved the western route costing Rs124.2 billion after Khyber-Pakhtunkhwa objected to it and claimed that it was in violation of the agreement struck at the All Parties Conference (APC) held in May last year.



The provincial government also withdrew its opposition to a Rs12 billion land acquisition scheme, which was also approved in April for acquiring land for the route.

“ECNEC granted final approval to both the projects after it was informed that the condition of verification of the proposed route has been met after consultation between the federal and the K-P committees on the CPEC,” an official handout of the Ministry of Finance said on Monday.

ECNEC approved 10 projects, costing Rs234 billion, including projects on the western route.

Officials of the Planning Ministry told The Express Tribune that K-P Chief Minister Pervaiz Khattak had expressed satisfaction over the proposed route during the meetings held to verify the alignment.

The K-P’s endorsement of the western route during the closed-door meetings contradicted its public stance on the matter.

The Ministry of Communication undertook the construction of the Burhan-Hakla Motorway on M-1 that extended to Dera Ismail Khan. The project’s cost was also rationalised from Rs124.2 billion to Rs110.2 billion.

In April, K-P’s Finance Minister Muzaffar Sayyed had objected to the proposed alignment. The provincial finance minister had claimed that the alignment was not final yet. Sayyed claimed that the route was also in violation of the agreement signed after the APC.



Last year, the APC recommended that the government should give priority to the CPEC’s western route, addressing the issue of poverty in the hinterland areas of the province. The government initially preferred the eastern route and allocated more than 90% of CPEC funding for its early completion.

ECNEC also modified its earlier decision on the smart meters project, costing Rs47 billion, which is funded by the Asian Development Bank.

The council also approved broadening the scope of technology for implementing schemes in the jurisdiction of two power distribution companies. Smart meters will be installed in the jurisdictions of Islamabad and Lahore power distribution companies.

The construction of 220KV Mirpurkhas Substation along with Associated Transmission Lines (PC-1) was also approved by ECNEC that would cost Rs3.9 billion.

The project will be completed in two years.

The highest economic decision-making body also approved Rs4.8 billion 500kV transmission lines between Matiari and Lahore.

ECNEC also approved the 220KV Dera Ismail Khan-Zhob Double Circuit Transmission Line, costing Rs6.9 billion. This project is to be financed by the ADB. The project will be completed by June 2018.

The project for ‘Evacuation of Power from 1,320 megawatt imported coal-based power plant at Hub was approved at an updated cost of Rs16.4 billion, subject to the condition that the project implementation will start after achieving financial close for the Hub power plant. 

Published in The Express Tribune, November 8^th, 2016.