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Thursday March 28, 2024

KP to get long-term benefits from CPEC

By Fakhar Durrani
January 12, 2016

ISLAMABAD: There is no doubt that only one energy project under the China Pakistan Economic Corridor (CPEC) has been allocated to Khyber Pakhtunkhwa; however, seven other energy projects of 9,410 MW are under construction in the province. Therefore, instead of looking at short-term benefits, the provincial government should look into the long-term as the KP will be a major beneficiary of these projects, says CPEC Project Director Major General (retd) Dr Zahir Shah.

Similarly, US$7.463 billion energy projects are being built in Balochistan, including the Hubco Coal Power Plant, Pak-Iran Import-1, Pak–Iran Import-2, Gwadar Coal Power Plant and Gaddani Coal Power Plant. Therefore, those who are making a hue and cry that Balochistan will get nothing should first check the facts before doing politics on the CPEC issue, he said.

In an interview with The News, Dr. Shah said KP’s reservations on the CPEC are justified only to the extent of energy projects as only one project, the Sukki Kinari Hydro Power Project, is part of the CPEC. However, looking at this project in the short term would be unjustified because KP would be the main beneficiary as this is a long term project.

He said all the projects which are part of the CPEC are not limited to two or three years but they are a continuous process, which would be completed in the next 15 years. Therefore, he said, instead of playing politics if any province or any political party has any suggestions or reservations, they should send them to the Joint Coordination Committee (JCC) for consideration. The JCC which comprises Chinese government officials, officials from the Ministry of Planning Commission, investors, and representatives from the provincial government would look into these suggestions. If these suggestions or reservations are justified, then the working group would address these issues, commented Dr. Shah.

“Those who think that Punjab would be the major beneficiary of the CPEC should realise that only two power projects of 2,320MWs, including Quaid-e-Azam Solar Park project and two coal based power plants, are part of CPEC whereas Balochistan will have three power plants of 4,260MW  as part of the CPEC  as well as other provinces which have more projects than Punjab,” remarked Shah.

The CPEC consists of 77 percent of the total projects in the energy sector whereas road and infrastructure is just 10 per cent whereas there would be some other projects which would take several years to be completed. Therefore, he said people should understand these are not going to be completed in one or two years.

He said the KP chief minister had announced to form a committee to talk on the CPEC issue and hopefully he would soon nominate his representatives who would present their point of view before the working group.

The CPEC is not all about roads, but many other industries are also part of it and KP would be major beneficiary of it. KP has potential in mining, minerals, whereas the optic fiber project would pass through KP. Hence, the province would get jobs, and would earn through services as well.  Only one project of installation of fiber optic along with the CPEC route from Khunjerab to Islamabad is being undertaken and it passes through KP.

It will connect Pakistan with China through fiber optic. It is obvious that any new projects of installation of fiber will tackle the needs of all parts of the country like all other projects.

He said the major confusion is regarding the share of the provinces in Chinese investment for energy projects. KP is not only a major beneficiary of the Chinese investment under CPEC, besides other investments, but it will also be on the top of the list among the four provinces in terms of long-term gains of these investments.

The Board of Investment has highlighted several industrial zone and JCC is considering these options whereas the provinces would get jobs through these projects. Similarly Baluchistan too could earn through the mineral industry as well as railways infrastructure would be a major part of this project which would pass through Baluchistan. Similarly the province would get a huge share in transport and railways services as well.

It is pertinent to mention here that more than $11.6 billion worth of energy projects would be completed which would produce 9,230 MW electricity in KP. These projects include Sukki Kinari Hydro Power Station ($1.8 billion) 870 MW, Dasu Hydro Power Project (around $8.6 billion) 4,320, Tarbela IV & V Extension ($928 million and $796 million respectively totaling $1.72 billion) 2,700 MW, KASA 1300 Transmission Line (more than $1.5 billion) 1000, Alai Khawar Hydro Power Project 121 MW, Khan Khawar Hydro Power Project 72 MW, Dabeer Khawar Hydro Power Project 130 MW, Gomalzam Hydro Power Project 17 MW. This means, the investment in energy projects of KP is much more than the energy projects in Punjab.