Investment feast: PM bags 19 China deals

Published: November 9, 2014
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China’s President Xi shakes hands with PM Nawaz. PHOTO: AFP

China’s President Xi shakes hands with PM Nawaz. PHOTO: AFP

BEIJING: 

On a trip that will fetch multibillion-dollar Chinese investment bonanza, Prime Minister Nawaz Sharif said on Saturday that Pakistan will help China fight extremists that Beijing says are active in the unruly far western region of Xinjiang.

Premier Nawaz, who is currently touring China, met China’s President Xi Jinping and Premier Li Keqiang at the Great Hall of the People in the Chinese capital. He told President Xi that his country would “continue to resolutely fight the East Turkestan Islamic Movement terrorist forces”, China’s foreign ministry said in a statement following the meetings in Beijing.

Pakistan will increase its coordination with China on Afghanistan too, so as to “jointly maintain regional peace and stability”, Nawaz said. Pakistan will also do all it can to guarantee the safety of Chinese companies and workers in the country, he added, who have in the past been attacked by militants.

China blames the East Turkestan Islamic Movement for carrying out attacks in Xinjiang, home to the Uighur community, though many foreign experts doubt the group’s existence in a cohesive group.

According to APP, matters of mutual interest, including energy, economic relations and regional situation came up for discussion during the prime minister’s meetings with the Chinese leadership. He said Pakistan-China friendship enjoyed across-the-board political, institutional and popular support in Pakistan. He stressed that his visit would further strengthen the bilateral relations between the two countries.

The Chinese leaders reiterated a desire to continue to support Pakistan in developing economy and maintaining stability, since China and Pakistan were ‘iron friends’ and all-weather partners of strategic cooperation. They stated that they would create a green channel for timely release of funds for development projects initiated by China in Pakistan.

Premier Nawaz was pleased that over the last year both sides have achieved better understanding on various projects related to energy, road and infrastructure. He pledged that Pakistan supported China’s stance on all major issues, especially on those involving China’s core interests.

1. Investment bonanza

During Nawaz’s trip, the two countries signed 19 agreements and memorandums of understanding mainly on projects relating to China-Pakistan Economic Corridor and electricity generation. The prime ministers of the two countries oversaw the signing of the agreements that pave way for Chinese state-owned companies to help build at least four new power stations in Pakistan, while the deals also cover the supply and mining of coal, the prime minister’s press office said.

“The deals being signed between China and Pakistan are worth $42 billion. The whole investment is being made by China,” said Amir Zamir, the spokesman for Pakistan’s ministry of planning and development. “There is no loan or aid for the energy projects, but pure investment by the Chinese,” he told AFP.

The deals include Economic and Technical Cooperation Agreement; Framework Agreement on Provision of Concessional Loan; CPEC Energy Projects Cooperation; Government Concessional Loan Agreement on Construction of Cross-Border Optical Fiber Cable System between China and Pakistan for International Connectivity of Voice/Data Traffic Project; and Framework Facility Agreement on Suki-Kinari hydropower project between China EXIM Bank and Suki-Kinari hydropower project.

The two sides also signed an MoU on the outline of the Long-Term Plan of CPEC, Capacity Building for Development of CPEC between NDRC of China and Ministry of Planning, Development and Reform of Pakistan, minutes of the 3rd JCC of China-Pakistan Economic Corridor, Surface Mine in Block-II of Thar coalfield and the Engro Thar 2x330MW coal-fired power plant.

The two countries also signed the Memorandum of Facilitation Agreement on Muzaffargarh 660MW coal-fired power project between CMEC and Government of Punjab, Pakistan, MOA relating to development of 2x660MW coal-fired power project at Qadarabad, Sahiwal, 99MW UEP power project EPC Framework Agreement, Quaid-e-Azam Solar Energy Park 900MW solar power station project between ZTE Energy and Government of Punjab, Implement Agreement on Dawood 50MW wind farm between Hydro China Corporation and AEDB Pakistan, EPC Agreement of 6.5 Mt/a open pit mine in Thar Block I, Coal Supply Contract under the Project of Integrated Mine Mouth Coal Power Plant in Thar Block I and MoU for Development of Thermal Power Assets in Pakistan.

Pakistan and China also signed Framework Agreement on Ruyi-Masood Textile Industrial Park and 2 x 135MW self-generation coal-fired power plant between Industrial & Commercial Bank of China (ICBC) and Ruyi-Masood Textile Company of Pakistan and MoU on coal-fired power plant in Port Qasim.

Strengthening Connectivity

Premier Nawaz Sharif also addressed a dialogue on ‘Strengthening Connectivity Partnership’ where he urged the Asian leaders to make sincere efforts for their societies and the people to have greater cultural, historical, and ideological understanding of each other. He appreciated China for taking a remarkable initiative in hosting such event and inviting Asian leaders.

He told the participants about Pakistan’s desire for infrastructure development and China’s role in helping Pakistan meet its development needs. “The China-Pakistan Economic Corridor, linking China’s West to Pakistan’s southern port of Gwadar in close proximity to the Middle East, is a flagship project which both governments are pursuing vigorously,” he added.

The prime minister said Pakistan views the China-Pakistan Economic Corridor as a catalyst for the development of our two countries and for regional economic cooperation, which reflects President Xi’s vision of building a Silk Road Economic Belt and a Maritime Silk Road.

He further said that they were living in an age of globalisation. “Asia is bursting with amazing opportunities. The growth rates of many Asian economies have been dynamic and resilient, going as high as up to 7.5 per cent, despite anemic global recovery in post- 2008 Global Financial Crisis,” he added.

The prime minister raised a number of related questions arising out of steps to manage such a monumental transformation, creation of economic opportunities for billions of people living in our region, and more importantly, the issues of poverty and wealth inequality. He viewed solution to all these questions in increasing and enhancing connectivity in the Asian countries.

List of agreements signed

1. Economic and Technical Cooperation Agreement

2. Framework agreement for concessional loan

3. Minutes of 3rd JCC of China-Pakistan Economic Corridor

4. MoU on outline of Long-Term CPEC Plan

5. MoU on capacity building for development of CPEC

6. Agreement on CPEC energy projects cooperation

7. Loan for cross-border fiber-optic system

8. MoU on surface mine in Thar Coal Field Block-II/ Engro-Thar Power Plant

9. Agreement on Suki-Kinari Hydro Power Project

10. Agreement on Muzaffargarh Coal Power Project

11. MOA on Coal Power Project at Qadarabad

12. UEP Power Project EPC Framework Agreement

13. Quaid-e-Azam Solar Energy Park

14. Implement Agreement on Dawood Wind Farm

15. EPC Agreement on open pit mine in Thar Block I

16. Coal supply contract for power plant in Thar Block I

17. MoU for thermal power assets in Pakistan

18. Agreement on Ruyi-Masood Textile Industrial Park

19. MoU on Coal Power Plant in Port Qasim

Published in The Express Tribune, November 9th, 2014.

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Reader Comments (19)

  • Raj
    Nov 9, 2014 - 8:19AM

    Lets see if even 2 of these deals materialize.

    Recommend

  • Zahid
    Nov 9, 2014 - 8:58AM

    Let’s see how the PTI guys turn this into a negative news as well.

    Recommend

  • Max
    Nov 9, 2014 - 9:06AM

    photo says….”Come to papa”! :)Recommend

  • King
    Nov 9, 2014 - 9:28AM

    In Xinjiang, Muslims under the age of 18 are prohibited from visiting mosques. All Muslims of Xinjiang are prohibited from fasting. If Muslims from Xinjiang want to join the government, they will have to renounce Islam.

    And Pakistan, made in the name of Islam, will support all this?

    Recommend

  • SHR
    Nov 9, 2014 - 9:32AM

    WOW! this seems to be brilliant….. regardless of whatever concerns I have with PMLN, this no doubt is the positive sign of Pak-China relationship, promised to bring prosperity in the country in so many aspects. China till date. has always proved to be the most sincere and worthy neighbour of Pakistan.

    Recommend

  • chai
    Nov 9, 2014 - 9:41AM

    Good for Pak that China is supporting them on technological & economic front, but there are 2 serious glitches in their policy.
    1. There is no focus on indigenous technology design, hence such project would create low skilled jobs which would have a long term effect.
    2. Pak is totally dependant on China and has done everything right to get isolated from the the world. Not a good thing to put all the eggs in one basket.

    Recommend

  • Anti khan
    Nov 9, 2014 - 9:52AM

    NS did a wonderful job! IK focus is always on dharnas and are always destructive. If Pakistan needs to grow, it should remain focused on development Islamic fundamentalism and good education and infrastructure.
    With blatant support to Taliban, drone dharna, support to extremist parties like JI & PAT, IK is a destructive force. Proof is there’s no development in KP and extremism is high. Imagine what would have happened if nawaz government not sent army to attack militants.

    Recommend

  • Sara
    Nov 9, 2014 - 10:52AM

    @Max … papa has many sons mind it !!!

    Recommend

  • Malik
    Nov 9, 2014 - 11:57AM

    So 14 agreements and 5 MOUs

    Recommend

  • Timorlane
    Nov 9, 2014 - 12:34PM

    “Deals”…oh yeah…yummy money commission…let the good times roll

    Recommend

  • Sunil
    Nov 9, 2014 - 12:43PM

    @King: Desperation. Selling Muslims to get benefit.

    Recommend

  • salman
    Nov 9, 2014 - 2:29PM

    Something is confusing. Spokesman says no loans yet list mentions loans?

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  • Riaz Khan
    Nov 10, 2014 - 8:55AM

    @salman:
    Almost all of the above projects will be undertaken by the Chinese on build operate transfer basis. Loans would be taken out by the Chinese firms building the project and would not cost a singly penny in mark-up to Pakistan. The framework for concessional loan is not a grant of loan itself but merely an agreement for concessional loans if and when required by GoP and does not pertain to the above mentioned projects.

    Recommend

  • Dr Ahmad Rashid Malik
    Nov 10, 2014 - 10:45AM

    China has not signed such a big deal worth US$ 42 billion with any country so far except Pakistan. This is a phenomenal change. However, Dharna parties, PML (Q), PTI, and PAT could not understand China and its relations with Pakistan. Imran Khan just already criticized these agreements.

    Recommend

  • lkhan
    Nov 10, 2014 - 12:26PM

    Ik has rightfully complained about coal generated energy – one of the major polluters of our atmosphere, and in Beijing recent reports state cause 250,000 deaths annually. Plus the burden of related disease such as heart ailments and cancers. This without keeping in mind climate change is a reality that is effecting Pakistan with droughts and floods, CO2 emissions from coal fired industries release high levels of the same. Perhaps CO2 capture technologies that are being developed/tested successfully in many countries, be part of such investment plans.

    Recommend

  • Grace
    Nov 10, 2014 - 11:38PM

    @lkhan: Funny how people complain but when Nawaz Sharif steps up and does more than anyone before to improve economy, energy and infrastructure people will still complain. I think Nawaz Sharif should just ignore the critics and keep doing his best to improve Pakistan becuase majority of people support him and that’s why we voted for him. He will transform Pak for the better!

    Recommend

  • Sunny
    Nov 11, 2014 - 1:27AM

    I am from India and I wish Pakistan best in bringing these projects to completion. A progressive and prosperous Pakistan would indeed be immense benefit to the world especially SE Asia. Not only will it bring stability to the region but will also divert attention away from irrelevant matters. People of Pakistan have been victims of the poor wrong leadership and I just hope and pray that they finally get to see the light of economic and social prosperity. In this global world- if one nation fails the whole world fails. So instead of wishing bad for Pakistan we should wish good for Pakistan.

    Recommend

  • Insafian
    Nov 11, 2014 - 10:56AM

    @Zahid:
    There is no need to turn this news in to a negative one. It is a good move by Nawaz Shareef. But at the same time I hope these deals do not turn out to be the like of Nandipur or Railway Project.

    Recommend

  • Insafian
    Nov 11, 2014 - 10:59AM

    @Anti khan:
    Wake up boy from your deep slumber. KPK has changed and is continuously changing day and night for the better. These hollow claims of yours is not worth anything now. Go back to papa Nawaz and his family run party.

    Recommend

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