Pak China Economic

China Pakistan Economic Corridor

(CPEC)

MINISTRY OF PLANNING, DEVELOPMENT AND REFORM

1

Sequence

• Background

• MoU of CPEC - Cooperation Fields

• Joint Meetings Held

• Significance of CPEC

• CPEC Priority Projects

• Deliverables for the High Level Visit

2

Background

– Pak China Friendship is spread over generations

– Chinese Premier Li Keqiang’s decision to include Pakistan in his first foreign trip in May 2013 after assuming office in March 2013 underscored the importance leadership attaches to our relationship. The visit’s timing was also significant as it took place immediately after the last elections in Pakistan.

3

Background

Prime Minister Muhammad Nawaz Sharif’s visit to China in July 2013 – his first official overseas trip since assuming office – marked a new phase in the development of the relationship by putting economic cooperation and connectivity squarely at the centre of the bilateral agenda.

4

During visit, MoU on China-Pak Economic Corridor (CPEC) was signed on 5th July 2013, in Beijing

5

Background

– The aim of the MoU is to enable the Government to cooperate in the planning and development of CPEC and facilitate and intensify economic activity along the Corridor.

– The Ministry of Planning, Development & Reform (MPD&R) is the focal Ministry for this engagement whereas its counterpart in China is National Development and Reform Commission (NDRC).

6

Cooperation Fields

• Long Term Plan : Formulate a Long Term Plan for CPEC from present to 2030 defining overall direction, ideas and goals of cooperation.

• Connectivity: Undertake research on communication networks including roads, railways, fiber optic cables, oil and gas pipelines linking Western China with Gwadar, Pakistan.

7

Cooperation Fields

• Economic and Technology Cooperation : Explore sectoral cooperation and exchanges in agriculture, spatial structure and functional zones, industrial park construction, manufacturing, traditional and new energy infrastructure construction, energy conservation and protection of environment at key areas along the Corridor.

• Social Sector: Strengthen cooperation in education, culture, tourism, poverty alleviation, cooperation in livelihood areas and media through cultural and local government to government exchanges and people to people communication

• Financial Cooperation and any Field of Mutual Interest: Conduct dialogue and research in the areas of mutual interests including financial cooperation

8

Prioritized Cooperation Fields

• Long Term Plan for CPEC • Connectivity Through all Modes of Transportation: Road, Rail,

Air and Sea along the Corridor• Financial Cooperation• Data Communication Systems• Energy• Industrial Park Construction/Economic Zones• Digitization of Television • Social and Community Development

9

Formulation of Joint Working Groups

• Joint Working Groups Formulated–Planning (M/o Planning, Development & Reform)–Energy (M/o Water & Power)–Transport Infrastructure (M/o Communications)–Gwadar(M/o Planning, Development & Reform)

• Industrial Park Construction/Economic Zones• Social Sector Development

10

11

CPEC – Joint Meetings

Meetings Dates, Venue

Planning

January 23, 2014, Islamabad

July 7, 2014, Beijing

March 2-11, 2015, Islamabad, Lahore, Karachi

Energy

January 7, 2014, Beijing

April 14-16, 2014, Islamabad

August 6-8, 2014, Beijing

24-28 Nov 2014, Beijing

15-16 Feb 2015, Beijing

31 Mar-1 Apr 2015, Islamabad

12

CPEC – Joint Meetings

Meetings Dates, Venue

Transport Infrastructure

January 8-11, 2014, Islamabad

April 14-27, 2014, Gwadar-Khunjrab

20-21 August 2014, Beijing

Joint Cooperation Committee (JCC)

August 27, 2013, Islamabad

February 19, 2014, Beijing

27 August 2014, Beijing

25 March, 2015, Beijing

Gwadar9-10 Dec 2014, Islamabad

21 Jan 2015, Islamabad

Significance of CPEC• Pak China Friendship : Strategic Economic Partnership• CPEC is envisioned as the Fate Changer, one of the most

transformational projects of 21st Century• CPEC will make Pakistan a geo economic hub( China, South

Asia, Central Asia, and Middle East)• Chinese concept of One Road, One belt and 21st Century

maritime silk route and CPEC linking, integrating and bridging

• Learning from Chinese Development Experience• CPEC is a corridor of peace and economic development • Benefits not restricted to Pakistan and China but will later

also benefit Iran, Afghanistan, CARs, India and the world

13

Significance of CPEC• Peshawar-Karachi motorway project started 1991 and effort

is being made to complete by 2017/18• All provincial capitals are nodes of CPEC • Gwadar is gateway of CPEC. To serve different

destinations/trans-shipments from Gwadar through network of roads/railways/air/sea .

• CPEC in not only road or railways corridor, but corridor of trade and investment, energy and gas pipelines, data communication, people, livelihood, education and culture

• CPEC in not a single route or road, but comprises network of roads/links/routes

14

CPEC• Energy Planning, The Master Transport

Planning Document 2014-30, Long Term Plan• CPEC takes remote areas into the folds of

active development; Gilgit-Baltistan, Havelian(Khyber Pakhtunkhwa), AJK, Thar(Sindh), Gwadar region(Balochistan).

• CPEC will integrate all provincial capitals into the economic mesh which would help in consolidation of Pakistan at national level and it will also contribute to regional integration, harmony and economic development

15

Envisioning Domestic Harmony, Development and PeaceKhunjerab

Peshawar

DI Khan

Quetta

Faisalabad

Jacobabad

Khuzdar

Gwadar

DG Khan

Hoshab

Basima

Skardu

Karachi

Lahore

Sukkur

Khanewal

KhunjerabGilgit

Raikot

Islamabad

Hyderabad

Havelian

Kotri

Islamabad

Lahore

Peshawar

Sukkur

Quetta

Gwadar

Economic Nodes of CPECKarachi

17

Gwadar and its Destinations

Envisioning World of Development, Peace

& Harmony

M 3

M 4

M 2

M 1

M 9M 10

National Highway Network

N5

N110

S3

S1

N105

N305

N125

N120

N95

N85

N55

N70

N65

N50

N45

N40

N35

N30

N25

N15

N10

M8

N155N255

M8

N75

N80

S2

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PAKISTAN

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ThattaKarachiTharparkar

Tando Muhammad Khan

Dadu

Sibi

Uthal

Kohlu

Kalat

Multan

Vehari

Sukkur

Kachhi

Chagai

Washuk

Quetta

Nushki

Kharan

Turbat

BarkhanLodhran

Larkana

Matiari Sanghar

Umerkot

Mastung

Panjgar

Khuzdar

Khanewal

Rajanpur

Kashmore

Khairpur

Jamshoro

Jacobabad

Shikarpur

Hyderabad

Pakpattan

BahawalpurDera Bugti

Mirpur Khas

Muzaffargarh Bahawalnagar

Rahim Yar Khan

D.G.Khan

Naushahro Feroze

Dir

Swat

TankWana

Zhob

Hangu

Bannu Karak

Swabi

Okara

Kasur

Jhang

Bajaur

Attock

Mardan

Layyah

Jhelum

Gujrat

Lahore

Ziarat

Pishin

Chitral

Shangla

Bhakkar

Narowal

Sailkot

Chakwal

Khushab

Chiniot

SahiwalLoralai

Malakand

PeshawarNowshera

Mansehra

Mianwali

Sargodha

Sheerani

Battagram

Charsadda

Ha?zabad

Musa Khel

Abbottabad

IslamabadRawalpindi

Gujranwala

Faisalabad

Lakki Marwat

NankanaSahib

Qila Abdullah

T.T.SinghQila

Saifullah

Mindi Bahauddin

D.I.Khan

QambarShahdadkot

Dera Murad Jamali

Shaheed Benazirabad

Gilgit

Bagh

Hunza

Neelum

Mirpur

Ghizer

Diamir

Astore

Hattian

GhancheKohistan

Muzaffarabad

Bhimber

Gojra

Raikot

Nag

Hoshab

Chaman

Taftan

Chakothi

Kalam

Sost

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DaryaKhan

Khunjrab

Awaran

Surab H

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MashkaiH

H Wadh

Sakrdu

Peshawar Karachi MotorwayLength 1,668 Km

Main Cities

National Highways

Motorways

Existing Main Routes

Existing Main Routes (Kms)N5 (Karachi - Torkham) 1,819N55 (Kotri - Peshawar) 1,264N25 (Karachi - Chaman) 813N50 (Kuchlack – DIKhan) 531N10 (Liari – Jiwani) 653

H

N50

N25

N25

N85

N5

N55

N55 N5

M8

N10

M2

M4

M3

M1

M9M10

Route-1

Route-2

Route-4

N-5

To India

To India

To Afghanistan

To Afghanistan

To Iran

To China

Route-3

M 3

M 4

M 2

M 1

M 9M 10


N5

N110

S3

S1

N105

N305

N125

N120

N95

N85

N55

N70

N65

N50

N45

N40

N35

N30

N25

N15

N10

M8

N155N255

M8

N75

N80

S2

N655

PAKISTAN

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N55

N50

N30

N10

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N85

N25

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N30

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Tando Muhammad Khan

Dadu

Sibi

Uthal

Kohlu

Kalat

Multan

Vehari

Sukkur

Kachhi

Chagai

Washuk

Quetta

Nushki

Kharan

Turbat

BarkhanLodhran

Larkana

Matiari Sanghar

Umerkot

Mastung

Panjgar

Khuzdar

Khanewal

Rajanpur

Kashmore

Khairpur

Jamshoro

Jacobabad

Shikarpur

Hyderabad

Pakpattan


Mirpur Khas


Rahim Yar Khan

D.G.Khan

Naushahro Feroze

Dir

Swat

TankWana

Zhob

Hangu

Bannu Karak

Swabi

Okara

Kasur

Jhang

Bajaur

Attock

Mardan

Layyah

Jhelum

Gujrat

Lahore

Ziarat

Pishin

Chitral

Shangla

Bhakkar

Narowal

Sailkot

Chakwal

Khushab

Chiniot

SahiwalLoralai

Malakand

PeshawarNowshera

Mansehra

Mianwali

Sargodha

Sheerani

Battagram

Charsadda

Ha?zabad

Musa Khel

Abbottabad

IslamabadRawalpindi

Gujranwala

Faisalabad

Lakki Marwat

NankanaSahib

Qila Abdullah

T.T.SinghQila

Saifullah

Mindi Bahauddin

D.I.Khan

QambarShahdadkot

Dera Murad Jamali

Shaheed Benazirabad

Gilgit

Bagh

Hunza

Neelum

Mirpur

Ghizer

Diamir

Astore

Hattian

GhancheKohistan

Muzaffarabad

Bhimber

Gojra

Raikot

Nag

Hoshab

Chaman

Taftan

Chakothi

Kalam

Sost

Besima RatoDero

DaryaKhan

Khunjrab

Awaran

Surab H

H

MashkaiH

H Wadh

Sakrdu

N50

N25

N25

N85

N5

N55

N55 N5

M8

N10

M2

M4

M3

M1

M9M10

Route-1

Route-2

Route-4

To India

To India

To Afghanistan

To Afghanistan

To Iran

To ChinaKKH phase 2(Thakot -Havelian

120km)

KLM(Multan to Sukkur

392 Km)

Eastbay Express Way (18.9km)

New Gwadar International

Airport

Route-3

UpdateCPEC Priority Projects

• Energy Sector• Transport Infrastructure Sector• Gwadar • Other Projects

20

Energy Projects

21

CHINA

AFGHANISTAN

IRAN

ARABIAN SEA

Energy Projects

Wind 250 MW

BB

B Coal Mining 10.3 mta

Hydro 1590 MW720 MW Project at Suki Kanari

720 MW Project at Karot

Solar 1000 MW

1000 MW Solar Power Park at Bahawalpur

2x660 Projects at Rahim Yar Khan

2x330 MW Thar Power Coal Plant SECMC

2x660 MW Thar Power Sino Sindh Resources Coal Plant

6.5 mtpa Coal Mining Project Thar Block-I by SSRPL

Coal 7560 MW

2x660 Projects at Sahiwal

2x660 Projects at Muzaffargarh

300 MW at Gwadar

2 x 660 MW Projects at PQ

Sunec 50 MW Wind (Jhimpir)

Sachal 50 MW Wind (Jhimpir)UEP 100 MW Wind (Jhimpir)

3.8 mtpa Coal Mining project Thar Block 2

Dawood 50 MW Wind (Bhambore)

CPEC Energy Projects SNAPHOT

Technology EHP Actively Promoted Total

MW Cost

US$ (B) MW Cost US$ (B) MW Cost

US$ (B)

COAL 7560 12.26 5445 16.74 13005 29.00

WIND 250 0.64 100 0.15 350 0.79

HYDRO 1590 3.22 1100 2.397 2690 5.62

SOLAR 1000 1.668 0 0 1000 1.67

TOTAL 10,400 17.788 6,645 19.287 17,045 37.075

Transport Infrastructure Projects

24

M 3

M 4

M 2

M 1

M 9M 10


N5

N110

S3

S1

N105

N305

N125

N120

N95

N85

N55

N70

N65

N50

N45

N40

N35

N30

N25

N15

N10

M8

N155N255

M8

N75

N80

S2

N655

PAKISTAN

N5

N55

N50

N30

N10

M8

N85

N25

N5

N50

N55

N30

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Tando Muhammad Khan

Dadu

Sibi

Uthal

Kohlu

Kalat

Multan

Vehari

Sukkur

Kachhi

Chagai

Washuk

Quetta

Nushki

Kharan

Turbat

BarkhanLodhran

Larkana

Matiari Sanghar

Umerkot

Mastung

Panjgar

Khuzdar

Khanewal

Rajanpur

Kashmore

Khairpur

Jamshoro

Jacobabad

Shikarpur

Hyderabad

Pakpattan


Mirpur Khas


Rahim Yar Khan

D.G.Khan

Naushahro Feroze

Dir

Swat

TankWana

Zhob

Hangu

Bannu Karak

Swabi

Okara

Kasur

Jhang

Bajaur

Attock

Mardan

Layyah

Jhelum

Gujrat

Lahore

Ziarat

Pishin

Chitral

Shangla

Bhakkar

Narowal

Sailkot

Chakwal

Khushab

Chiniot

SahiwalLoralai

Malakand

PeshawarNowshera

Mansehra

Mianwali

Sargodha

Sheerani

Battagram

Charsadda

Ha?zabad

Musa Khel

Abbottabad

IslamabadRawalpindi

Gujranwala

Faisalabad

Lakki Marwat

NankanaSahib

Qila Abdullah

T.T.SinghQila

Saifullah

Mindi Bahauddin

D.I.Khan

QambarShahdadkot

Dera Murad Jamali

Shaheed Benazirabad

Gilgit

Bagh

Hunza

Neelum

Mirpur

Ghizer

Diamir

Astore

Hattian

GhancheKohistan

Muzaffarabad

Bhimber

Gojra

Raikot

Nag

Hoshab

Chaman

Taftan

Chakothi

Kalam

Sost

Besima RatoDero

DaryaKhan

Khunjrab

Awaran

Surab H

H

MashkaiH

H Wadh

Sakrdu

KLM (Karachi – Lahore Motorway)

Peshawar Lahore MotorwayLength 1,668 Km

Main Cities

National Highways

Motorways

Existing Main Routes

Existing Main Routes (Kms)N5 (Karachi - Torkham) 1,819N55 (Kotri - Peshawar) 1,264N25 (Karachi - Chaman) 813N50 (Kuchlack – DIKhan) 531N10 (Liari – Jiwani) 653

H

N50

N25

N25

N85

N5

N55

N55 N5

M8

N10

M2

M4

M3

M1

M9M10

Route-1

Route-2

Route-4

N-5

To India

To India

To Afghanistan

To Afghanistan

To Iran

To ChinaKKH phase 2(Thakot -Havelian

120km)

KLM(Multan to Sukkur

392 Km)

Eastbay Express Way (18.9km)

New Gwadar International

Airport

Route-3

26

Existing Railway Network and CPEC

Railway Line ProjectsKhunjerab

Peshawar

DI Khan

Quetta

Faisalabad

Jacobabad

Khuzdar

Gwadar

DG Khan

Hoshab

Basima

Skardu

Karachi

SECTIONS

Lahore

Multan

Sukkur

Khanewal

Islamabad-Khunjerab (652 Km)

Sukkur-Gwadar (1048Km)

ML-1 Peshawar-Karachi (1681)

Karachi-Gwadar(700 Km)

GilgitRaikot

Islamabad

Hyderabad

New Project Medium to Long-TermML-1 Up gradation of Existing Network

Havelian Dry Port

Havelian

ML2 (1253 Km)

Kotri

Gwadar - CPEC Projects

New Airport

`

LNG Terminal

`

`

Pak-China Technical Training & Vocational Center

Free ZoneTechnical & Vocational

Institute

West bay East bay

New Airport

Free

Zone

Residential AreaIndustrial Area

Coal Fire

d Power Plant

LNG Terminal

Eastbay Express Way

GDA Hospital

Water Transmission Line

Join

t Def

ense

Arabian Sea

Coal Power Plant

GIEDA EPZ

Eastbay Express Way

Water SupplyFriendship Hospital at

Gwadar

EPZ

GIEDA

Dredging

`

Breakwaters

`

Coastal Highway

M 3

M 4

M 2

M 1

M 9M 10


N5

N110

S3

S1

N105

N305

N125

N120

N95

N85

N55

N70

N65

N50

N45

N40

N35

N30

N25

N15

N10

M8

N155N255

M8

N75

N80

S2

N655

PAKISTAN

N5

N55

N50

N30

N10

M8

N85

N25

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N50

N55

N30

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Tando Muhammad Khan

Dadu

Sibi

Uthal

Kohlu

Kalat

Multan

Vehari

Sukkur

Kachhi

Chagai

Washuk

Quetta

Nushki

Kharan

Turbat

BarkhanLodhran

Larkana

Matiari Sanghar

Umerkot

Mastung

Panjgar

Khuzdar

Khanewal

Rajanpur

Kashmore

Khairpur

Jamshoro

Jacobabad

Shikarpur

Hyderabad

Pakpattan


Mirpur Khas


Rahim Yar Khan

D.G.Khan

Naushahro Feroze

Dir

Swat

TankWana

Zhob

Hangu

Bannu Karak

Swabi

Okara

Kasur

Jhang

Bajaur

Attock

Mardan

Layyah

Jhelum

Gujrat

Lahore

Ziarat

Pishin

Chitral

Shangla

Bhakkar

Narowal

Sailkot

Chakwal

Khushab

Chiniot

SahiwalLoralai

Malakand

PeshawarNowshera

Mansehra

Mianwali

Sargodha

Sheerani

Battagram

Charsadda

Ha?zabad

Musa Khel

Abbottabad

IslamabadRawalpindi

Gujranwala

Faisalabad

Lakki Marwat

NankanaSahib

Qila Abdullah

T.T.SinghQila

Saifullah

Mindi Bahauddin

D.I.Khan

QambarShahdadkot

Dera Murad Jamali

Shaheed Benazirabad

Gilgit

Bagh

Hunza

Neelum

Mirpur

Ghizer

Diamir

Astore

Hattian

GhancheKohistan

Muzaffarabad

Bhimber

Gojra

Raikot

Nag

Hoshab

Chaman

Taftan

Chakothi

Kalam

Sost

Besima RatoDero

DaryaKhan

Khunjrab

Awaran

Surab H

H

MashkaiH

H Wadh

Sakrdu

N50

N25

N25

N85

N5

N55

N55 N5

M8

N10

M2

M4

M3

M1

M9M10

Route-1

Route-2

Route-4

Route-3

China –Pakistan Optical Fiber Cable ProjectKhunjerab-Islamabad

Digital Television(DTMB) Pilot Project

CPEC-PROJECT PORTFOLIOSectors MW/KM Est. Cost

(US $ Bn)

Energy (Priority ) MW 10,400 15.506

Energy (Actively Promoted) MW 6,645 18.287

Road (Km) 832 5.900

Rail (Km) 1,736 3.690

Gwadar (including sea, air, land links) 0.662

Mass Transportation Orange Line 1.400

Cross-Border Fibre Optic Cable System 0.044

DTMB Pilot Project 0.002

Total 45.451 30

Deliverables for the High Level VisitGround Break Ceremony

• Cross Border Fiber optic Data Communication system project(Khunjerb-Islamabad)

• Digital Terrestrial Multimedia Broadcast(DTMB)-Pilot Project (Murree)

• Orange Line, Lahore• 100 MW Solar power project, Bahawalpur• Cultural Centre, Islamabad • ICBC Lahore Branch• Small/Medium Hydro Research Centre• FM-98 Channel

31

Deliverables for the High Level VisitGround Break Ceremony

• 720 MW Hydro power project, Karot, AJK• 50 MW Wind power project, Dawood, Thatta• 100 MW Wind power project, UEP, Thatta• 50 MW Wind power project, Sachal, Thatta• 900 MW Zoenergy Solar Power project, Bahawalpur

32

Deliverables for the High Level VisitSigning Agreement in Presence of the Principals

– Joint Statement by the Foreign Minister of China and Advisor to Prime Minister on Security & Foreign Affairs of Pakistan

– Minutes of the 4th JCC Meeting– Agreement between by Pakistan’s Finance Minister &

China’s Commerce Minister

33

Deliverables for the High Level VisitM/o Planning, Development & Reform

– Inter-governmental Framework Agreement, KLM (Multan-Sukkur section), KKH Phase II (Thakot-Havelian section), Gwadar Eastbay Expressway and New Gwadar International Airport)

– MOU on community development and social sector projects (Pro-Bono Support for Gwadar Region)

– Minutes of 4th JCC Meeting – Memorandum of Cooperation Between Ministry of

Planning Development and Reform and National Development and Reform Commission of China

34

Deliverables for the High Level VisitM/o Ports & Shipping

– Land Lease Deed of land for Gwadar Port , Free Zone between COPHCL and GPA

– Agreement on Establishing Sister-City Relationship between Gwadar & Zhuhai Cities

35

Deliverables for the High Level Visit M/o Finance

– MOU between NDRC and M/o PS on Provision of goods for Climate change in Gwadar

– Financing Framework Agreement/MOU of KLM (Multan-Sukkur section), KKH Phase II (Thakot-Havelian section), Gwadar Eastbay Expressway and New Gwadar International Airport)

– Framework Agreement for financing Development of Industrial Parks

– LoE on Supply of Law Enforcement Material– Agreement on Economic and Technical Cooperation

between the Government of the Peoples’ Republic of China and the Government of Islamic Republic of Pakistan

36

Deliverables for the High Level Visit

• Protocol on the Establishment of China Pakistan Joint Marine Research Center between State Oceanic Administration of the People’s Republic of China and the Ministry of Science and Technology

• Framework Agreement for Joint Feasibility for up-gradation of ML-1 and construction of Havelian Dry Port, Signatory Secretary, Ministry of Railways

• Commercial contract on Lahore Orange Line Project• Exchange of note on expansion of banking sector under

China Pakistan FTA on services/Protocol on banking sector

37

Deliverables for the High Level Visit M/o W&P

– Cooperation Agreement for Matiari-Lahore and Matiari (Port Qasim)-Faisalabad Transmission and Transformation Project

– 1320 MW Imported Coal Based Power Plant at Port Qasim, Karachi., Financing Cooperation Agreement

– 660 MW Coal Based Power Plants, Engro Thar Power Limited . Signing of Term Sheet

– MoU on Financing of Neelum Jhelum Hydro Power Project– 1320 MW Coal Based Power Project by Huaneng (Shandong),

Ruyi (Pakistan) Pvt Ltd, Sahiwal , Implementation Agreement– Framework Agreement on the CPEC Energy Project Cooperation

Between M/o W&P and SINOSURE) – Memorandum Of Understanding between China Three Gorges

and WAPDA with regard to Hydro Power development

38


– 870 MW Hydel project, Suki Kinari, KPK , Signing of Financing Agreement between S K Hydro, Exim Bank and ICBC

– Term Sheet of 720MW Hydel Project at Karot Hydro Power Project AJK, by CDB, EXIM Bank of China and Silk Road Fund

– 900 MWs Zonergy Solar Power Project , Term Sheet of the facility for Zonergy 900 MW solar project in Pakistan between Export Import Bank of China, China Development Bank Corporation and ZTE Punjab Solar Project Company

– 3.8mt/a mining at Thar Block-II , Signing of Terms and Conditions between (SECMC) Sindh Engro Coal Mining Company and China Development Bank

– 300 MW Coal based Power Plant and Mining at Salt range Punjab , Memorandum of Facilitation Agreement between Mines & Minerals Department Government of Punjab and China Machinery Engineering Corporation

39


– 1400 MW (4X350 MW) Mine Mouth Integrated Coal Power Plant Project, Joint Venture Agreement

– Signing of Joint venture Agreement for development of 1x660 MW between HUBCO and CPIH

– Strategic Investment Framework Agreement between China Huaneng Group and Government of Punjab

– 1100 MW Chashma V Project

40

Deliverables for the High Level Visit

• Framework Agreement between NEA and MoPNR on Gwadar-Nawabshah LNG Terminal and Pipeline Project

41

Thanks

42

43

Questions / Answers

CPEC-PROJECT PORTFOLIOSectors MW/KM Est. Cost

(US $ Bn)

Energy (Priority ) MW 10,400 15.506

Energy (Actively Promoted) MW 6,645 18.287

Road (Km) 832 5.900

Rail (Km) 1,736 3.690

Gwadar (including sea, air, land links) 0.662

Mass Transportation Orange Line 1.400

Cross-Border Fibre Optic Cable System 0.044

DTMB Pilot Project 0.002

Total 45.451 46

CPEC Energy Projects SNAPHOT

Technology EHP Actively Promoted Total

MW Cost

US$ (B) MW Cost US$ (B) MW Cost

US$ (B)

COAL 7560 12.26 5445 16.74 13005 29.00

WIND 250 0.64 100 0.15 350 0.79

HYDRO 1590 3.22 1100 2.397 2690 5.62

SOLAR 1000 1.668 0 0 1000 1.67

TOTAL 10,400 17.788 6,645 19.287 17,045 37.075

Envisioning Domestic Harmony, Development and PeaceKhunjerab

Peshawar

DI Khan

Quetta

Faisalabad

Jacobabad

Khuzdar

Gwadar

DG Khan

Hoshab

Basima

Skardu

Karachi

Lahore

Sukkur

Khanewal

KhunjerabGilgit

Raikot

Islamabad

Hyderabad

Havelian

Kotri

Islamabad

Lahore

Peshawar

Sukkur

Quetta

Gwadar

Economic Nodes of CPECKarachi

SEA-ME-WE 3/4

TAE

TWA -1

CPEC DATA CONNECTIVITY

LEGENDSEA-ME-WE 3/ 4

TAE

TWA-1

PROPOSED OFC

GB

AUSTRALIA

SINGAPORE

SRI LANKA

SHANGHAIRAWALPINDI

INDIA

KARACHI

OMANEYGPT

SPAIN

FRANCE

GERMANY

YEMEN

UAE

KHUNJRAB

ALEXANDERIA

INDONESIA

Keoje

Envisioning Golbal Harmony, Development and Peace

52

Existing Railway Network and CPEC

Status of Transport and Infrastructure Projects

54

TRANSPORT EHP Projects

55

Name of Project: Karachi – Lahore Motorway Multan - Sukkur: 387 KMStart Date: Jun., 2015Finish date: 4Q, 2017

Current Status of Project Cost of Project& Financial Modality/

Implementation Modality

Next Steps - Major Activity Milestones Issues

• Feasibility Study completed.• PC-I approved by ECNEC approved

the project for Land Acquisition, effected properties compensation & relocation of utilities for construction of 959 Km length of KLM at the total estimated cost of Rs.30.0 billion without any FEC in July, 2014.

• Framework Agreement has to be signed with the Chinese side for which comments from Chinese side are still awaited.

• NHA has shared all relevant documents with EXIM bank against which response is still awaited.

PC-1 at a cost of PKR 259.35 Billion approved by ECNEC.

90% cost s Chinese Credit Financing (Rs 233.417 Bn)

Financing under CPEC on concessional basis. EPC mode Credit Financing (GOP share 10%)

Implementation through an EPC contract.

Signing of Frame work Agreement

March / April 2015

i) Approval of Framework Agreement by Government of China

ii) Completion of Loan evaluation by EXIM Bank

Technical and Contract Negotiations 30st April 2015

Contract Signing 15th May 2015

Loan Negotiations 30th May 2015

Mobilization of Contractor 30th June 2015

Project Completion Dec, 2017

Name of Project: Karakoram Highway (Phase-II) Raikot to Islamabad (437 Km) Thakot Havelien Section (120Km)

Start Date: June , 2015Finish date: June, 2018




• Feasibility Study completed by Chinese• Cost rationalization underway•ECNEC approved the Thakot-Havelian Section of the project. Cost to be firmed up based on detailed engineering design which is in process.•Framework agreement has to be signed with the Chinese side for which comments from Chinese side are still awaited. •NHA has shared all relevant documents with EXIM Bank against which response is still awaited

Thakot-Havelian: Rs.92.919 billionFinancing under GCL

Implementation through an EPC contract.

Signing of Frame work Agreement March / April 2015 i) Cost

Rationalizationii) Frame work

Agreement by Government of China

Technical and Contract Negotiations

30st April 2015




57

Name of Project: New Gwadar International Airport (NGIA) Project for A380 and B777 Start Date: June, 2015

Finish date: Dec, 2017




– Physical activities for construction of boundary and road with allied facilities, completed. –Land has been occupied, for access roads process has began.–ECNEC has approved the PC-I on 12th Jan. 2015.–FWA needs to signed for which comments are waited from China OR–Need NDRC approval for suggestion of ICB as suggested by sub-group

Project Cost: Rs. 23 Bn

Chinese Government Concessional Loan

Signing of Frame work Agreement March / April 2015

Approval of Framework Agreement by Government of China






58

Name of Project: Construction of East-Bay Expressway, Gwadar Port (18.9 kms)Start Date: Jun, 2015Finish date: Dec, 2017

59

Current Status of Project

Cost of Project& Financial Modality/


Next Steps - Major Activity Milestones

Risks/Issues

–PC-I approved by ECNEC on 12th January 2015.–FWA need to signed for which comments from China are awaitedOR–Need NDRC approval for suggestion of ICB as suggested by sub-group

Rs. 13.543 billion

GCL

EPC Mode


March / April 2015


Completion of Loan evaluation by EXIM Bank


30st April 2015




Railway Projects

60

Name of Project: Rehabilitation & Up-gradation of Karachi-Lahore-Peshawar (ML-1) Railway Track (1,681 kms)

Start Date: Dec, 2015Finish date: Dec., 2018

61




Issues and Risks

• Terms of Reference (TORs) for feasibility finalized with Chinese counterparts.

• Both sides have nominated companies for Feasibility Studies

• Framework Agreement for Joint Feasibility has been finalized and is to be signed during High Level Visit

Estimated Cost: US$ 3,650 million Financial Modality: Chinese Government Concessional Loan (GCL).

Implementation Modality: EPC contract

Feasibility Study: June, 2015

PC-I approval: August, 2015

EPC Contract: December 2015

Financial Close: February 2016

Construction: June 2016

Signing of FW Agreement

Name of Project: Construction of Havelian Dry port including cargo handling facilitiesStart Date: May, 2015

Finish date: Dec., 2018

62

Current Status of Project Cost of Project& Financial

Modality/Implementation Modality


Issues and Risks

Terms of Reference (TORs) for feasibility finalized with Chinese counterparts.Both sides have nominated companies for Feasibility StudiesFramework Agreement for Joint Feasibility Study has been agreed by NDRC and expected to be signed during high level visit

Estimated Cost: US$ 40 million Financial Modality: Chinese Government Concessional Loan (GCL).

Implementation Modality: EPC contract

Signing of Framework in Mar/April 2015

Feasibility Study: June, 2015

PC-I approval: August, 2015

EPC Contract: December 2015

Financial Close: February 2016

Construction: June 2016

Signing of Framework Agreement

GWADAR OTHER Projects

63

Name of Project: New Gwadar International Airport (NGIA) Project for A380 and B777 Start Date: June, 2015

Finish date: Dec, 2017




– Physical activities for construction of boundary and road with allied facilities, completed. –Land has been occupied, for access roads process has began.–ECNEC has approved the PC-I on 12th Jan. 2015.–FWA needs to signed for which comments are waited from China OR–Need NDRC approval for suggestion of ICB as suggested by sub-group

Project Cost: Rs. 23 Bn

Chinese Government Concessional Loan

Signing of Frame work Agreement March / April 2015







Name of Project: Construction of East-Bay Expressway, Gwadar Port (18.9 kms)Start Date: Jun, 2015Finish date: Dec, 2017

65





Risks/Issues

–PC-I approved by ECNEC on 12th January 2015.–FWA need to signed for which comments from China are awaited OR–Need NDRC approval for suggestion of ICB as suggested by sub-group

Rs. 13.543 billion

GCL

EPC Mode


March / April 2015


Completion of Loan evaluation by EXIM Bank


30st April 2015




Name of Project: Acquisition of Land for Free Zone for Gwadar Port

66




Issues

• PC-I of Acquisition of 2282 acres of land for Free Trade Zone at Gwadar has been approved

• Payment has been made to Govt. of Balochistan.

• Lease agreement for transfer of Land has been legally vetted

Total costRs 6.5 billion

Signing of lease agreement

COPHCL wants lease deed to address some additional commitments outside of concession agreement

Name of Project: Dredging of Berthing Areas & Channels, Gwadar Port Start Date: Oct., 2016

Finish Date: Dec. 2017

67





Risk/Issues

This is related to the Port Expansion plan to be prepared by Gwadar Port Operator, viz. China Oversea Ports Holding Ltd Company. Execution will be in the later half of the Short-Term/EH Phase of CPEC after finalization of port business plan.

• Approx. Rs 2.800 billion

• Chinese Government Concessional Loan

• Implementation on EPC mode through GPA

• Submission of PC-I for approval by: Sep., 15, 2015

• PC-I approval by: September 30, 2015

• Decision on work award: November 25, 2015

• Loan Application submission by: November 30, 2015

• Agreement signed by: December 30, 2015

Name of Project: Construction of Breakwaters, Gwadar Port Start Date: Oct., 2016

Finish Date: Dec. 2017

68





Risk/Issues

This is related to the Port Expansion plan to be prepared by Gwadar Port Operator, viz. China Oversea Ports Holding Ltd Company. Execution will be in the later half of the Short-Term/EH Phase of CPEC after finalization of port business plan.

• Approx. Rs 13.00 billion (US $ 122.645 million)

• Mix of Chinese Government Concessional Loan & Grant

• Implementation on EPC mode through GPA

• Submission of PC-I for approval by: Sep., 15, 2015

• PC-I approval by: September 30, 2015

• Decision on work award: November 25, 2015

• Loan Application submission by: November 30, 2015

• Agreement signed by: December 30, 2015

Name of Project: Pak-China Technical & Vocational Institute at GwadarStart Date: Jan, 2016 Finish date: Dec, 2017

69





Risk/Issues

•PC-1 approved in principle with committee under Member Infra for cost and scope rationalization.•Grant application forwarded by EAD to Chinese side

• Approx. Rs 0.970 billion

• Chinese government grant

• Implementation on EPC mode through Gwadar Port Authority (GPA)

• Signing of Social Welfare and Development of Gwadar MOU during High level visit

• Consensus on Training Need Assessments by designated focal person

• Financial Agreement: May 2015

• Grant Approval

Name of Project: Infrastructure Development for Free Zone (2282 Acres/923 hectare) Start Date: Jun, 2014 Finish date: Dec, 2017

70





Risk/Issues

• PC-1 for land approved•Disbursement of Money•Acquisition of Land by MoP&S• Draft lease under legal vet.•Detail Survey has commenced, Feb 2015

• Estimated Rs 1.252 billion

• Summary for extension in lease period and tax concession in approval.

- Time lines for provision of basic Infrastructure

- Formulation and approval of Security Master Plan

Name of Project: Infrastructure Development for EPZs, Gwadar (1000 Acres)(Access roads, internal roads, water, gas, power, custom facilities, fencing and

security Start Date: Dec., 2016 Finish date: June, 2018

71





Risk/Issues

• PC-1 yet to be prepared


• Formulation and approval of PC-1

Name of Project: Infrastructure Development for GIEDA, Gwadar (3000 Acres)(Access roads, internal roads, water, gas, power, custom facilities, fencing and

security Start Date: Dec., 2016 Finish date: June, 2018

72





Risk/Issues

• PC-1 yet to be prepared


• Formulation and approval of PC-1

Name of Project: Necessary Facilities of Fresh Water Treatment, Water Supply and Distribution, Gwadar

Start Date: Apr., 2015 Finish date: June, 2017

73




Risk/Issues

•The PC-I document was considered in CDWP and detailed feasibility study, environmental study and reference design were required. GDA is in process of removing the observations and work on feasibility study, ESIA and reference design is started and expected to be completed by March, 2015. The PC-II is has been approved.•Revised PC-1 to be resubmitted with all details by March 1, 2015

- Rs 13.222 billion including Sewerage treatment plants and 5 MGD desalination plant

- Chinese Grant

- Implementation on EPC mode through Gwadar Development Authority (GDA)

- Resubmission of PC-I : March 1, 2015

- PC-I approval by: March 15, 2015

- Loan/Grant application by: April 2015

- MoU & Framework agreement requirement

- Clarity on concerned Chinese ministry

- Clarity on financial modality: Grant or loan

Name of Project: China Pakistan Friendship Hospital at Gwadar Start Date: Jun, 2015 Finish date: Dec, 2017

74


Cost of Project& Financial



Risk/Issues

The PC-I document was approved by CDWP.Committee for Cost rationalization scheduled for Feb 20, 2015Application for grant is also processed through EAD.

- Estimated Rs. 9.9 billion

- Chinese government grant

- Implementation on EPC mode through Gwadar Development Authority (GDA)

• Approval by ECNEC• Signing of Social Welfare

and Development of Gwadar MOU during High level visit

• Consensus on Training Need Assessments by designated focal person

• Financial Agreement: May 2015

• Grant Approval

Name of Project: 2X150 MW Coal-Fired Power Plant, Gwadar Start Date: Apr, 2015 Finish date: June, 2017

75

Current Status of Project Cost of Project& Financial



Risk/Issues

•With the approval of NDRC, the China Communications Construction Company (CCCC) has agreed to invest on this project on IPP basis•The Gwadar Development Authority has submitted a PC-II which has to be presented in CDWP for conducting a detailed feasibility study and Environmental Impact Assessment.

• Approx. US$ 360 million

• IPP mode might be more feasible

• Pre-feasibility study by CCCC in process. Will be submitted to PPIB by April 2015.

• The GDA will expedite the land acquisition process and discuss with the GOB equity issue with provincial Government.

Financing Mechanism to be finalized

Energy Projects

76

Name of Project: 2 x 660 MW Coal-Based Power Projects (IPP) at Port QasimStart Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Power China/Sinohydro and M/s Al-Mirqab Capital, Qatar

Current CompletedStatus of Project

Cost of Project & Financial Modality/



• Feasibility Study• ESIA for Power Plant• LOI acquired• Land Acquired 200

Acres • Equity Committed• Basic Engineering • ESIA for Power

Cleared

Cost: USD 1800 million

IPP Mode

• NOC Issuance In process• EPC Contract Signing In Process with

SEPCO III • Term sheet from local banks In

process • Generation License In Process • Upfront Tariff In Process • LOS April-15 • Security Package and PPA/IA Signing• Financial Close September-15 • Supply to Grid Sep-17 • COD Dec-17

• PPA / IA Approval from ECC

• Agreements on Sinosure

77

Name of Project: 2 x 330 MW Thar Power Coal Plant SECMC (Thar Power Company)Start Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Engro Powergen

Current Completed Status of Project




Issues

ESIA and NOC IssuedLOI/License IssuedEPC Contract SigningLand AcquisitionTerm sheet from local banksEquity CommitmentBasic EngineeringGeneration LicenseUpfront Tariff opted

Cost: USD 900 million (75% Debt,25% equity)

IPP

• Upfront Tariff application filed with NEPRA

• LOS Under review• Security Package and

PPA/IA Signing• Financial Close• Supply to Grid• COD

Security Package and PPA/IA Signing

78

Name of Project: 3.8 MT/A Coal Mining Project Thar Block-II SECMCStart Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Government of Sindh And Engro Powergen (SECMC)

Current completedStatus of Project

Cost of Project & Financial



Issues

Feasibility Study ESIA completion and NOC IssuedLOI/License EPC Contract Signed Land Acquisition Term sheet from local banks Equity Commitment Basic Engineering Water Assurance completedOB Removal. 5 M Completed

USD 900 million

(80% debt,20% equity)PPP

• Coal tariff filed with TCEB • IA for Mining in Process • Financial close• Over Burden removal

completion by Dec-17 • Decemeber-17

79

Name of Project: 2 x 660 MW Thar Power Sino Sindh Resources Coal Plant Start Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Sino Sindh Resources Limited





Issues

NTP issued by PPIBEPC Contract Signed

Cost: USD 1910 million

(75% Debt,25% equity)

IPP

• ESIA and NOC• Land Acquisition• Term sheet from local banks• Equity Commitment• Basic Engineering• Generation License• Upfront Tariff application to

be filed with NEPRA• LOS Under review• Financial Close• Supply to Grid• COD

Security Package and PPA/IA Signing

Customs Duties to be clarified for Mining and Power at Thar. MoWP will discuss with FBR

80

Name of Project: 6.5 MT/A Coal Mining Project Thar Block-I by SSRPLStart Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Sino-Sindh Resource Pvt Ltd


Cost of Project & Financial



Feasibility StudyESIA completion and NOC IssuanceLOI/LicenseTerm sheet from local banksEquity CommitmentBasic EngineeringUpfront TariffFinancial CloseSupply to GridCOD

USD 1,300 million

(80% debt,20% equity)

• EPC Contract Signing• Land Acquisition• OB Removal. Yet to start• Coal Tariff petition ready to be filed• Water Assurance required• Financial Close• COD expected by Mar-18

81

Name of Project: 2 x 660 MW Coal-Based Power Projects at Rahim Yar KhanStart Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Nishat Group


Cost of Project & Financial Modality/Implementation

Modality


Issues

Pre-Feasibility Study CompletedNOC Initiated

− One project of 1x 660 MW have been awarded to CMEC, China in IPP mode.

Sponsor submitted Bank guarantee on 3.07.2014. Issuance of LOI under process

− Other 1 x660 MW is still open for investment. Sponsor has shown interest in partnership with Govt. of Punjab.

• ESIA • Feasibility Study• ESIA completion and NOC

Issuance• LOI/License• EPC Contract Signing• Land Acquisition• Term sheet from local banks• Equity Commitment• Basic Engineering• Generation License• Upfront Tariff• LOS• Security Package and PPA/IA

Signing• Financial Close• COD

Completion of arrangements for coal transportation

PPA / IA Approval from ECCAgreements on Sinosure

82

Name of Project: 2 x 660 MW Coal-Based Power Projects at Muzaffargarh


Cost of Project & Financial Modality/Implementation

Modality


Issues

Pre-Feasibility Study CompletedESIA completion and NOC Initiated

− One project of 1x 660 MW have been awarded to CMEC, China in IPP mode.

Sponsor submitted Bank guarantee on 3.07.2014. Issuance of LOI under process

− Other 1 x660 MW is still open for investment. Sponsor has shown interest in partnership with Govt. of Punjab.

• Feasibility Study• ESIA completion and NOC

Issuance• LOI/License• EPC Contract Signing• Land Acquisition• Term sheet from local banks• Equity Commitment• Basic Engineering• Generation License• Upfront Tariff• LOS• Security Package and PPA/IA

Signing• Financial Close• COD



83

Name of Project: 2 x 660 MW Coal-Based Power Projects at SahiwalStart Date: March, 2015Finish date: 4th Quarter of 2017Sponsors/EPC: Shandong Ruyi Group and Huaneng Shandong Power Generation Company LimitedCurrent Completed

Status of ProjectCost of Project &

Financial Modality/ Implementation

Modality

Next Steps - Major Activity Milestones Issues for

Feasibility Study CompletedLOI Issued

.

The estimated cost of the project is USD 1600 Million.

Consortium will execute the project through an EPC Contractor

• ESIA completion and NOC Issuance• LOI/License• EPC Contract Signing• Land Acquisition• Term sheet from local banks• Equity Commitment• Basic Engineering• Generation License by April 15• Upfront Tariff • LOS by May 15• Security Package and PPA/IA Signing• Financial Close• COD



84

Name of Project: 870 MW Suki Kanari Hydro Power ProjectStart Date: April, 2015Finish date: 4th Quarter of 2020Sponsors/EPC: China Gezhouba Group Company Ltd





Issues

Feasibility StudyESIA completion and NOC IssuedLOI/License issuedEPC Contract SignedBasic EngineeringGeneration LicenseLOS IssuedPPA/IA Completed

Project Cost: US $ 1,801 million

IPP

• Land Acquisition• Term sheet from local

banks• Equity Commitment• Financial Close

expected by June 15• COD by December

2020

85

Name of Project: 720 MW Karot Hydro Power ProjectStart Date: March, 2015Finish date: 4th Quarter of 2020Sponsors/EPC: CWE (China International Water & Electric Corp.)





Issues

Feasibility Study completed

ESIA Completed and NOC issued

LOS Issued

Basic Engineering Completed

Project Cost:US $ 1,470 million IPP

• EPC Contract Signing in process

• Land Acquisition in process• Term sheet from local

banks in process• Equity Commitment in

process• Generation License

application filed with NEPRA

• PPA/IA to be signed• COD committed December

2020

Land Acquisition Issue due to Rate variation on Punjab and AJK side.

86

Name of Project: UEPL 100 MW (Wind)Start Date: March 2015Finish date: March 2016Sponsors/EPC: UEPL (United Energy Pakistan Ltd.)





Issues

Feasibility StudyESIA completion and NOC IssuanceLOI/LicenseEPC Contract SigningLand AcquisitionEquity CommitmentGeneration LicenseUpfront Tariff

$ 260 million

IPP

• Term sheet from local banks

• Basic Engineering

• COD Expected by Sep 2016

87

Name of Project: Sunec 50 MW (Wind)Start Date: March, 2015Finish date: March, 2016Sponsors/EPC: China Sunec Energy





Issues

Feasibility Study CompletedESIA completion and NOC IssuedLOI/License IssuedEPC Contract SignedLand Acquisition CompletedEquity Commitment CompletedGeneration LicenseUpfront Tariff opted

• Term sheet from local banks

• Basic Engineering• Financial Close• Supply to Grid• COD

88

Name of Project: Sachal 50 MW (Wind)Start Date: March, 2015Finish date: March, 2016Sponsors/EPC: Arif Habib Group





Issues

Feasibility Study CompletedESIA completion and NOC IssuedLOI/License issuedEPC Contract SignedLand Acquisition completedTerm sheet from local banks completedEquity Commitment doneGeneration LicenseUpfront Tariff OptedLOS CompletedSecurity Package and PPA/IA SigningFinancial Close

$ 130 million

IPP

• Basic Engineering• Supply to Grid• COD

89

Name of Project: Dawood 50 MW (Wind)Start Date: March 2015Finish date: Oct 2016Sponsors/EPC: Hydro-Dawood China





Issues

Feasibility StudyESIA completion and NOC IssuanceLOI/LicenseEPC Contract SigningLand AcquisitionTerm sheet from local banksEquity CommitmentGeneration LicenseUpfront Tariff OptedLOSSecurity Package and PPA/IA Signing

$ 130 million

IPP

• Basic Engineering• Financial Close• Supply to Grid• COD

90

Name of Project: Solar Power Park at Bahawalpur (900 MW)Start Date: March, 2015Finish date: Dec., 2016Sponsors/EPC: Zoenergy





LOI Issued − Cost of Project US$ 1.33 Bn approximately

− Debt Equity Ratio 75:25

• Feasibility Study• ESIA completion and NOC

Issuance• EPC Contract Signing• Land Acquisition• Term sheet from local banks• Equity Commitment• Basic Engineering• Generation License• Upfront Tariff• LOS• Security Package and PPA/IA

Signing• Financial Close• Supply to Grid• COD

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Name of Project: LNG-Nawabshah- Gwadar Pipe line and Terminal projectStart Date: March, 2015Finish date: Sponsors/EPC: Inter State Gas Systems (Pvt) Ltd





Issues

ECC approved construction of 700km Gwadar-Nawabshah pipeline to transport liquefied natural gas (LNG).

Installation of offshore / FSRU based LNG Terminal and associated Utilities & Off-Sites at Gwadar Port.

Construction of 42 inch diameter 700 Km (Approx.) Pipeline System from Gwadar to Nawabshah.

The terminal will have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas.

MPD&R has requested NDRC for inclusion of the project.

NDRC to process the request

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OTHER CPEC Projects

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Name of Project: Orange Line Metro Lahore Project ( 27.1 Km)




Issues /Risks

•All initials sets have been completed.Option I –under ground + elevated all bids rejected

Option II only elevated bids in evaluation.

•Negotiations with Chinese companies for project implementation are in process.

Cost of Project: 1.6 Billion USD, actual cost of the project will be determined once the commercial contract is finalized

Government to Government Concessional/Preferential Loan + Export Buyer Credit

EPC (Engineering, Procurement and Construction)

Signing of the Commercial Contract after negotiation complete .

Financing agreement with Exim Bank

Project execution time is 27 months from the date of loan effectiveness

Next steps to be agreed

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Name of Project: PAKISTAN – CHINA OPTICAL FIBER CABLE PROJECTStart Date: Apr, 2015 Finish date: Mar, 2018




Issues /Risks

–MoU was signed between Special Communications Organization (SCO) and China Telecomm (CT) on 17 April 2007–Construction and Maintenance Agreement (C&MA) between SCO and CT was signed in June 2010. –Project PC-1 was recommended by CDWP in Nov 2010 and subsequently approved by ECNEC on 9th Dec 2010.–The contract was signed between SCO and M/s Huawei, Technologies (Pvt) Ltd on 5th July 2013.–The Loan Agreement along with Frame Agreement was signed on 7 Nov 2014.–Loan activation formalities completed.

Cost of Project: USD 44 Million

Financing - 15% Local Component through PSDP and 85% FEC through GCL through EXIM Bank

1st Disbursement of loan in March 2015

Construction work

Meeting held16th February, 2015 to resolve modalities for construction of service duct along highways

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Name of Project: DTMB Pilot ProjectStart Date: April, 2015 Finish date: Oct, 2015




Issues /Risks

–MoU signed on Nov. 8, 2014 in Beijing

–Implementation Agreement signed on December 4, 2014 in Islamabad.

–Shipment expected in February / March 2015.

–Soft Launch April 2015–Trial period six months

Cost of Project: US$ 2 million

Financing - Grant by Chinese Government

Approval of PC-1 which shall be presented in next CDWP meeting

Receipt of Shipment of equipment

Installation at PTV Murree Station

Evaluation of pilot project by high level committee

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