A newer and increasingly common option in conventional power projects involving Chinese contractors is a project finance structure
such as a BOT (build-operate-transfer). Under a BOT, developers set up and arrange loans to a special purpose vehicle (SPV) in the host country. Some 70-80% of the capital costs of construction will come from these loans, and the remainder will be provided by the developers through equity and / or other loans.

The SPV then enters into all the contracts needed for the project, including an engineering procurement construction (EPC) contract with the contractor. If the funding is from China, this EPC contract will almost always be with a Chinese contractor.

Conventional power projects are seen as particularly 'bankable' BOT projects, because the technology is usually tried and tested and there is a high likelihood that performance requirements will be met. These projects also do not generally require significant land acquisitions, or need extensive underground works, reducing the risk of delays and unforeseen problems. Many jurisdictions, in fact, now have standard form power purchase agreements and implementation agreements that offer to allocate project risks between the offtaker, the government and the developers in a split that is attractive to many lenders.

It has taken Chinese contractors some time to get used to EPC contracts under project financed structures, as these tend to be tough on the contractor. Rates of delay and performance liquidated damages, and the caps on these, are generally much higher, and the contractor's rights to additional time and cost are limited. Many of these rights have to match the power purchase agreement that the SPV has negotiated with the offtaker. However, the upside for the contractor is that the developers are often willing to pay a higher contract price in return for the contractor taking on these additional risks.

Where the finance for the project is coming from Chinese banks, the Chinese contractor may enjoy stronger bargaining power, although that is not always the case. There are plenty of Chinese contractors with the skills needed to build these power stations, and developers will often use the threat of switching negotiations to a competing contractor to get their way in negotiations.

Evolution to investment

Even before the launch of OBOR, the larger and more experienced Chinese contractors had begun the transition from a traditional contractor business model to a 'contractor plus investment' model. Now, the signs are that a significant proportion of OBOR projects will involve Chinese contractors making investments in the projects that they are engaged to construct, and conventional power projects have been among the first to use this structure.

The China Pakistan Economic Corridor (CPEC) has been among the first to see innovative project structures. The Thar Coal Block II project involves the development of an open pit coal mine and 660MW mine mouth power station through two SPVs set up by a consortium of Pakistani and Chinese investors, including a major Chinese contractor who will act as both EPC contractor and SPV equity participant. Project finance loans, including conventional RMB and Rupee Islamic tranches, are provided by syndicates of Pakistani and Chinese lenders including Habib Bank, United Bank, China Development Bank, Industrial and Commercial Bank of China and Construction Bank of China.

- See more at: http://www.conventuslaw.com/report/chinas-one-belt-one-road-policy-...

Wiki Loves Earth shortlists top 10 photos in #Pakistan round

http://www.dawn.com/news/1263551/wiki-loves-earth-shortlists-top-10...


You may remember the international photography competition Wiki Loves Earth from last year, in which a Pakistani photographer's capture of Shangrila Lake won the best international picture in 2015.

Wikimedia Foundation, the California-based non-profit organisation which runs Wikipedia, has organised the global photography competition again this year, and the best pictures from Pakistan to go onto compete at the international stage have been selected.

The competition, aimed at documenting the world’s natural heritage under the free license of Creative Commons, recently concluded in Pakistan after receiving an overwhelming response.

Over 1,200 contestants in Pakistan sent in over 8,000 photographs making it the country with the third-largest number of submissions and the greatest number of participants.

Wiki Loves Earth 2016 has seen more than 7,000 participants from 26 countries, with over 75,000 photographs submitted throughout the month of May.

The best thing about the competition is that all the photos have a free license and can be re-used for any purpose, as long as the user attributes the photographer.

The contest was first run in Ukraine in 2013 and has since spread globally.

It is described as the 'sister competition' to Wiki Loves Monuments, which is recognised by the Guinness Book of Records as the largest photography competition in the world.

Pakistan became a part of the competition for the first time last year and achieved the first position amongst 28 participating nations.

The international winners of Wiki Loves Earth 2016 are yet to be announced, but the top 10 pictures to represent Pakistan as decided by Pakistan’s jury are below:

$46 billion #CPEC: Projects worth $30b already under way, says Minister Ahsan Iqbal. #Gwadar #Pakistan

http://tribune.com.pk/story/1113820/46-billion-cpec-projects-worth-...

Projects worth $30 billion out of a total portfolio of $46 billion have been initiated in the last one year, said Minister for Planning, Development and Reform Ahsan Iqbal, adding that there was no bureaucratic hurdle in the implementation of China-Pakistan Economic Corridor (CPEC) schemes.

The financing arrangements for $30 billion CPEC projects are either finalised or are at various stages of approval, said Iqbal while addressing a press conference a day after the National Economic Council (NEC) meeting.

The minister said that most of the $30 billion active portfolio is in the private sector while financing agreements of road infrastructure projects of the public sector have also been signed.

Iqbal said that making $30 billion CPEC portfolio active in a limited period of one year was a big success for the country and it shows that there were no bureaucratic hurdles in the way of swift implementation.

Govt accused of not sharing details of CPEC projects

Iqbal’s comments came amid pressure to set up a CPEC authority for swift implementation of the projects that started under Chinese president’s strategic initiative, One-Belt One-Road.

The purpose of the proposed CPEC authority is said to fast-track approvals and monitoring of these schemes. However, the federal government has already turned down the request on the ground that it would add another bureaucratic layer.

Iqbal said that Gwadar port projects including New Gwadar International Airport and Eastbay Expressway have been forwarded to the Chinese side for financial approval. He hoped that this process would be completed in the next three months and work would begin soon.

According to Iqbal, the government has allocated Rs125 billion ($1.2 billion) for carrying out work on CPEC schemes during the new fiscal year 2016-17. “However, the allocations remain far less than the actual requirements.

“An amount of Rs60 billion has also been allocated for two LNG-fired power plants being set up in Punjab,” Iqbal added, hoping that these two projects would be completed by May next year.

He said in the last three years, 610 projects costing Rs747 billion have been completed. The minister said that the 1,320MW Port Qasim power project would be completed by September next year while the Thar Coal mining projects would be operational by 2018.

To a question whether Chahbahar Port of Iran was a threat to Gwadar port, the Minister said that Pakistan does not feel threatened by any project.

PSDP review

For the outgoing fiscal year, the federal government had allocated Rs700 billion for PSDP spending while the four provinces allocated Rs814 billion, bringing the total outlay to Rs1.514 trillion. However, the Planning Commission on Monday informed the NEC that the spending would remain close to Rs1.401 trillion.

Iqbal insisted that the Rs114 billion lesser spending than approved budget was not actually a cut but a result of administrative weaknesses, legal issues and capacity constraints. Contrary to this claim, the International Monetary Fund had reported about a year ago that the federal PSDP spending would remain lower than the Rs700 billion allocation.

I hear a lot of big container ships sail back empty out of US ports. http://www.wsj.com/articles/at-u-s-ports-exports-are-coming-up-empt...

One of the fastest-growing U.S. exports right now is air.

Shipments of empty containers out of the U.S. are surging this year, highlighting the impact the economic slowdown in China is having on U.S. exporters. The U.S. imports more from China than it sends back, but certain American industries—including those that supply scrap metal and wastepaper—feed China’s industrial production.

Those exporters have suffered this year as China’s economy has cooled. In September, the Port of Long Beach, Calif., part of the country’s busiest ocean-shipping gateway, handled 197,076 outbound empty boxes. They accounted for nearly a third of all containers that moved through the port last month. September was the eighth straight month in which empty containers leaving Long Beach outnumbered those loaded with exports.

The empties are shipping out at a faster rate at many U.S. ports, particularly those closely tied to trade with China, while shipments of containers loaded with goods are declining as exporters find it tougher to make foreign sales. That’s at least partly because the strong dollar makes American goods more expensive.

Normally, after containers filled with consumer goods are delivered to the U.S. and unloaded, they return to export hubs. There, they typically are stuffed with American agricultural products, certain high-end consumer goods and large volumes of the heavy, bulk refuse that is recycled through China’s factories into products or packaging.

Last month, however, Long Beach and the Port of Oakland both reported double-digit gains in exports of empty containers. So far this year, empties at the two ports are up more than 20% from a year earlier.


Long Beach’s containerized exports were down 8.2% this year through September, while Oakland’s volume of outbound loaded containers fell 12.7% from a year earlier in the January-September period.

“This is a thermometer,” said Jock O’Connell, an international-trade economist at Beacon Economics. “The thing to worry about is if the trade imbalance starts to widen.”

Trade figures released Tuesday in Beijing underscored China’s faltering demand. China’s imports fell 20.4% year-over-year in September following a 13.8% decline in August.

As of June, U.S. exports of scrap materials were down 36% from their peak of $32.6 billion in 2011.

The diminished demand for the industrial material reflects economic weakness that goes beyond China, said Paul Bingham, an economist with the Economic Development Research Group Inc. It also suggests slowing consumer demand in Europe, he said.

The U.S. trade gap has expanded sharply in recent months as exports have slipped, growing 15.6% in August to a seasonally adjusted $48.3 billion, according to the Commerce Department. U.S. exports fell 2% in the month to their lowest level since October 2012.

Outbound empties have mounted this year at other big gateways, too. In August, the Port of Los Angeles, the country’s largest single container port, handled more than 225,000 empty outbound containers, counted in twenty-foot equivalent units, a standard maritime industry measure. That was 21% more than a year earlier. The Port Authority of New York and New Jersey expanded its empty-container exports nearly 31.5% in the first eight months of this year, and empties outnumbered loaded container exports over that time.

#China Grants $260m for #Gwadar International Airport in #Pakistan #CPEC http://crss.pk/story/china-grants-260m-for-gwadar-airport/ …

China is granting Pakistan some $260 million for the construction of the Gwadar International Airport on the Arabian Sea, national media reported Tuesday.

Government officials shared this information with the Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) in a recent meeting at Islamabad, the daily Express Tribune said. The entire amount of $ 260 million is a grant from the Chinese government, the parliamentarians were informed. (http://tribune.com.pk/story/1136476/infrastructure-gwadar-airport-c...)

Gwadar, also being developed as a deep-sea port, is the culmination of the CPEC – the first initiative under China’s One Belt One Road (OBOR) trade connectivity plans – that will connect Kashgar in west Chinese province of Xinjiang  through a nearly 3000 km route.

Gwadar is located in the ethnic Baloch part of the southwestern Balochistan province, where a low-intensity Baloch nationalist movement has been stoking unrest.

This airport would be able to handle the largest of passenger planes including the A380 Air Bus and Boeing 747-400.

Additionally, the Chinese government has given another grant of $10 million for the construction of the Pakistan-China Vocational and Technical Training Institute to help locals acquire skills.

These grants are part of  $ 46 billion infrastructure investment and communications’ development plan under the CPEC. It includes construction of highways, industrial zones, and energy projects across Pakistan.

Li Ka-Shing’s 2nd #Pakistan Container Terminal to Start Operations at #Karachi Port Soon http://bloom.bg/2bcCjyH via @markets

Billionaire Li Ka-shing’s Hutchison Port Holdings Ltd. is set to start its second Pakistan terminal after a five-year delay, giving mega vessels access to the coastal city of Karachi for the first time.
Hutchison’s terminal operations in South Asia’s second-largest economy will commence before the end of this year, as agreed with the Karachi Port Trust, the company said in an e-mailed reply to questions on Monday.
Li’s company, a unit of his Hong Kong-based flagship CK Hutchison Holdings Ltd., is tapping into expanding growth in Pakistan as China plans investments valued at $46 billion in power plants and road projects. Prime Minister Nawaz Sharif’s government is targeting an annual growth rate of 7 percent next year as the country is set to complete an International Monetary Fund loan program next month.
“Pakistan has been lagging behind big time and now we are moving into the future with this terminal being one of the deepest in the region,” Abid Butt, chief executive officer of Karachi-based freight company e2e Supply Chain Management Ltd., said by phone. “The port can become a transshipment location given India is congested and located better than Dubai’s Jabel Ali.”
Hutchison Port shares gained 1.2 percent to 0.440 Singapore dollars as of 9:01 a.m. in Singapore trading. The stock was down 18 percent this year as of the close Monday.
Karachi Delays
More than half of the nation’s total trade is done through transshipment, said Butt. However, roads around the port in Pakistan’s biggest city will need to be expanded to accommodate cargo from the world’s largest ships, he said.
South Asia Pakistan Terminals Ltd. will handle as much as 1.7 million twenty-foot equivalent units a year and increase the nation’s container handling capacity by more than half, according to a person familiar with the matter, who asked not to be identified as the plans are private.
Hutchison’s port will begin operations in the last week of October and will aim to handle 250,000 twenty-foot equivalent units in the first year of operations and increase that to more than 2 million in five years, the person said.
The commercial operations of the terminal with a depth of 16 meters was initially expected to start in 2011, four years after the agreement. Bureaucratic wrangling and a slowdown in road construction and dredging delayed the port operator’s plans, the person said. Some road works and dredging are still not complete, the person said.
‘Leftover Dredging’
“Most of the work is done and the leftover dredging and road work will be complete before the launch,” said Shafiq Faridi, spokesman for the Karachi Port Trust said by phone.
Pakistan handles about 2.5 million twenty-foot equivalent, including Hutchison’s first venture Karachi International Container Terminal that started in 1998.

Published: 27 Jun 2016
Pakistan Vision 2025 seeks to enhance the national transportation infrastructure by establishing an efficient and integrated transportation and logistics system. Establishing industrial parks and developing SEZs along the China–Pakistan Economic Corridor (CPEC) will strengthen the transportation network and logistics infrastructure. Road freight transportation contributed over 90% of the goods transported by land. Rail freight is likely to gain share due to modernization and expansion. High priority is given to road network development. Private sector participation in logistics infrastructure development is likely to gain momentum, and transportation and warehousing are likely to lead logistics industry growth during 2016–2020.

The potential opportunities in the logistics industry in Pakistan, is estimated at approximately US $ 30.77 billion in 2015. Key targets set in the national development initiatives for the transportation sector include reduction in transportation costs, effective connectivity between rural areas and urban centres, inter-provincial high-speed connectivity. Also high priority is given for the development of integrated road/rail networks between economic hubs (including air, sea and dry ports) and high capacity transportation corridors connecting with major regional trading partners

Up-gradation of all major airports to trans-shipment hubs, development of cargo villages, modernization of rail transport, E-commerce, CPEC related investments in industrial centres and Special Economic Zones (SEZs) will serve as primary macro drivers for logistics sector growth. CPEC related projects intend to upgrade and modernize road transport and related logistics infrastructure such as logistics park and establishment of cargo villages at major airports. Hence, high priority is given for road network development; private sector participation in logistics infrastructure development is likely to gain momentum.

Storage and Warehousing demand from CPEC related industrial corridors are likely to derive increased storage and warehousing requirements including cold chain logistics, establishment of Cargo Villages Ports will facilitate goods traffic to central Asian countries and evolve as a major transhipment hub in the region.

Freight forwarding opportunities expected to increase due to increasing trade activities through Karachi and Port Qasim. Trade reforms expected to increase volume of trade with increase in inter and intra-regional trade. Development of new port at Gwadar generates demand for warehousing, special economic zone, road and railway infrastructure network. As the connectivity and linkage improves, this port will emerge as one of the major transhipment hub in the region - transhipment goods to China, Central Asian countries

Energy and Transportation sectors are expected to see high growth due to increased investment relating to CPEC and National Transportation Plans between 2016 and 2020. This is expected to growth of transportation and warehousing segments between 2016 and 2020.

http://www.frost.com/sublib/display-report.do?id=9AB2-00-57-00-00&a...

#India and #Iran Slow to Develop #Chabahar Port as #China Builds Rival Hub at #Gwadar. #CPEC http://bloom.bg/2dHPVbw via @markets

When the leaders of India, Iran and Afghanistan gathered in Tehran in the spring for a ceremony marking India’s development of a strategic Iranian port, they recited Persian poetry and said their partnership would “alter the course of history.”
On a recent visit, roughly 13 years after India first agreed to develop the port of Chabahar, a single ship floated at the main jetty. Most of the cargo containers scattered in an asphalt lot bore the logo of the state-owned Islamic Republic of Iran Shipping Lines. In an adjacent harbor, a dozen wooden dhows, or traditional fishing boats, bobbed in the water.
Months after the ceremony in May and pledges by India to inject $500 million into the project, the much-heralded port of Chabahar remains a sleepy outpost – as well as a shadow of the Chinese-built port of Gwadar, 100 kilometers (62 miles) to the east across Iran’s border with Pakistan.
“What you’re seeing is the problem with many of the Indian commitments abroad,” said Sameer Patil, an analyst at Gateway House, a research organization in Mumbai. “Once a prime minister makes that commitment, the parties find it difficult to move the process forward. The Indian bureaucracy takes its sweet time.”

Chabahar was supposed to be an easy win: India would bankroll a hub to rival the China-Pakistan partnership at Gwadar, Iran would get a major ocean port outside the Strait of Hormuz and spur growth in its poor eastern region, and Afghanistan would gain road and rail links to a deep-water port that could boost its war-ravaged economy. But more than a decade on, the strategic asset is languishing, even as China sinks $45 billion into the China Pakistan Economic Corridor that winds down to Gwadar.

“The slowness comes from these small things,” said Mosadeghi, who heads the economic section at Iran’s embassy in New Delhi. “Both sides want to expedite this.”
For Prime Minister Narendra Modi, Chabahar could aid his goals of integrating South Asia’s economies and boosting India’s stature in the region. However, the slow pace of its development has drawn criticism.
“With China and Pakistan developing Gwadar just a few kilometers away, India cannot afford either delay or inattention to this vital port,” said Shashi Tharoor, a lawmaker with India’s opposition Congress Party and chairman of a parliamentary committee on foreign affairs.
Chabahar could be a linchpin for the region’s economy. It’s close to the western Indian ports of Kandla, Mundra and Mumbai and could help India’s farmers get cheaper access to fertilizers and other commodities from central Asia and beyond.

GWADAR: First Chinese ship finally arrived at Gwadar port that is center of $46 billion China-Pakistan economic corridor (CPEC) project between Beijing and Islamabad, Samaa reported Sunday.

The project is the beginning of a journey of prosperity of Pakistan. The economic corridor is about 3000 Kilometres long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to rest of the world through Pakistan’s Gwadar port.

To strengthen economic activities at the port, Prime Minister Nawaz Sharif has recently unveiled five developmental projects for Gwadar.

These are Free Trade Zone, Business Complex of Gwadar Port Authority, Pak-China Government Primary School Faqir Colony, Sawar and Shadikor dams and Gwadar University.

Gwadar, the nerve centre of CPEC, is fast transforming into an international city. Gwadar has the potential to become a world class sea port and a place which is not only important for Pakistan, but also for the region and the world. – Samaa

http://www.samaa.tv/economy/2016/10/first-chinese-ship-docks-at-gwa...

Fast track completion of CPEC projects to change the infrastructure development landscape of the country

Western Route of China-Pakistan Economic will be completed by 2018. Gawadar-Quetta Road will be completed by next month, ahead of its scheduled time. Now Gwadar is connected with Quetta, Afghanistan, Central Asian states and rest of the country through this route. Work on Dera Ismail Khan-Quetta Road has also been initiated. Dera Ismail Khan-Burhan Road will be completed by year 2018. Special attention has been given to Sindh and Balochistan in CPEC projects.

http://www.radio.gov.pk/07-Nov-2016/fast-track-completion-of-cpec-p...

#Chinese ship with 300 containers to depart from #Gwadar Port on Sunday. #Pakistan #CPEC https://www.thenews.com.pk/print/163792-Gwadar-Port-opening-on-Sunday …

The civil and military leadership of China and Pakistan will open international port at Gwadar on Sunday. Prime Minister Nawaz Sharif and Chief of Army Staff General Raheel Sharif will see off Chinese containers leaving for Africa.

Heads of the armed forces, diplomats, chief ministers of Balochistan and other provinces and other dignitaries will be invited for this event in the next 48 hours.

Defying designs of India and its allies, loading of 300 containers will be completed on Saturday and they will depart from the port the next day.

To counter Gwadar, India has invested $12 million in Iran’s Chaubahar port, which is no match to Gwadar port. Balochistan Chief Minister Sanaullah Zehri is going to China on invitation next month.

#Chinese ship at #GwadarPort carrying containers headed to #Africa #MidEast via #Pakistan land route. #CPEC #China http://www.smh.com.au/world/new-silk-road-first-large-chinese-shipment-passes-through-key-pakistani-port-20161113-gsohoi.html 

"Pakistan is located at the intersection of three engines of growth in Asia - South Asia, China and Central Asia," Pakistani Prime Minister Nawaz Sharif said at a ceremony on Sunday.

"CPEC will help in integrating these regions into an economic zone offering great opportunities for people of the region as well as investors from all over the world."

Army chief General Raheel Sharif also attended Sunday's ceremony at the port, which is expected mostly to see imports of building materials in the next year before eventually becoming a gateway for goods from western China's Xinjiang province.

Chinese Container Ship Cosco Wellington left Gwadar today. Ship details:   

Read more at http://www.marinetraffic.com/en/ais/details/ships/shipid:684942/mms...

#Iran, #India trade charges on delay of #Chabahar port. #Gwadar #Pakistan #Afghanistan http://economictimes.indiatimes.com/news/politics-and-nation/iran-i... … via @economictimes

The Budget may have allotted Rs 150 crore for the development of Chabahar port in Iran, but it may not be enough to bring the long delayed project back to life as Tehran has not yet submitted a proposal for release of the fund despite several reminders, some officials say. 

Indian government had set aside $235 million, or about Rs 150 crore, line of credit for the project since 2015 but is unable to release the first tranche of $150 million, they said. 


"The funds cannot be released without paperwork and this has not yet reached the Indian government. Even reminders from EXIM Bank to Iran have not helped," a person familiar with the matter told ET. 

"There are apparently no reasons behind Iran's delay in submitting the proposal for the release of loan," the person alleged. 

Iranian government sources, however, told ET that the Indian side is delaying work on the project, but did not explain reasons for delay. The project was earlier delayed when the Iranian side unilaterally changed terms and conditions on the eve of the signing of MoU in 2015 by introducing a local stakeholder without consulting India, Indian sources said. 

#Land rush around #Pakistan's #Gwadar port triggered by #Chinese investment | Reuters #CPEC

http://mobile.reuters.com/article/idINKBN16215Q
Pakistani real estate giant Rafi Group made a ten-fold profit last year from its sale of hundreds of acres of land in the remote fishing town of Gwadar, acquired soon after the government announced plans for a deep-sea port there.

The windfall came after 12 years of waiting patiently for the Gwadar port to emerge as the centrepiece of China's ambitious plans for a trade and energy corridor stretching from the Persian Gulf, across Pakistan, into western Xinjiang.

"We had anticipated the Chinese would need a route to the Arabian Sea," Rafi Group Chief Executive Shehriar Rafi told Reuters. "And today, all routes lead back to Gwadar."

Gwadar forms the southern Pakistan hub of a $57-billion China-Pakistan Economic Corridor (CPEC) of infrastructure and energy projects Beijing announced in 2014.

Since then, land prices have skyrocketed as property demand has spiked, and dozens of real estate firms want to cash in.

"Gwadar is a 'Made in China' brand and everyone wants a piece," said realtor Afzal Adil, one of several who shifted operations from the eastern city of Lahore in 2015.

Last year, Pakistan welcomed the first large shipment of Chinese goods at Gwadar, where the China Overseas Ports Holding Company Ltd took over operations in 2013. It plans to eventually handle 300 million to 400 million tons of cargo a year.

It also aims to develop seafood processing plants in a nearby free trade zone sprawled over 923 hectares (2,281 acres).

The route through Gwadar offers China its shortest path to the oil-rich Middle East, Africa, and most of the Western hemisphere, besides promising to open up remote, landlocked Xinjiang.

Last year, the Applied Economics Research Centre estimated the corridor would create 700,000 jobs in Pakistan and a Chinese newspaper recently put the number at more than 2 million.

Authorities have completed an expressway through Gwadar, which has a 350-km (218-mile) road network. A new international airport kicks off next year, to handle an influx of hundreds of Chinese traders and officials expected to live near the port.

The volume of Gwadar property searches surged 14-fold on Pakistan's largest real estate database, Zameen.com, between 2014 and 2016, up from a prior rate of a few hundred a month.

"It's like a gold rush," said Chief Executive Zeeshan Ali Khan. "Anyone who is interested in real estate, be it an investor or a developer, is eyeing Gwadar."

Prices, which have risen two- to four-fold on average, are climbing "on a weekly basis," said Saad Arshed, the Pakistan managing director of online real estate marketplace Lamudi.pk.

Regional fishermen have held strikes during the last two years, to protest against being displaced by the port.

To keep pace with the interest, urban officials are struggling to computerise land management and record-keeping. "We are trying to upgrade as fast as we can," said Zakir Majeed, an official of the Gwadar Development Authority (GDA).

But Gwadar lacks basic education and health facilities, in contrast to the gleaming towers and piped drinking water of the "smart city" envisioned by the GDA.

"For commercial projects, things are moving fast," Lamudi's Arshed said. "But people actually living there, that will take a long time."

Port officials expect the population to hit 2 million over the next two decades, from about 185,000 now.

Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of #CPEC

https://tribune.com.pk/story/1341071/gwadar-china-build-automobile-...

Chinese investors are contemplating to build a chemical and automobile city in Gwadar under the umbrella of the China-Pakistan Economic Corridor (CPEC).

According to a private news channel, sources linked to CPEC project stated that the Chinese authorities have already initiated paperwork on said projects, which reflects their seriousness.

Analysts have advised owners of local automobile industry to start joint ventures with Chinese as this would help in transfer of technology as well as boost the local industry. Earlier, China announced to set up a steel factory under CPEC apart from various other projects.

China is developing the Gwadar port as a strategic and commercial hub under its ‘One-Belt One-Road’ initiative that promises shared regional prosperity. CPEC is one of many arteries of the ‘One-Belt One-Road’

In 2013, Pakistan handed over the Gwadar port to the Chinese company by annulling a deal with a Singapore company that could not develop the port after taking over in 2007. The ECC further approved amendments in the Gwadar Port Concession Agreement for operating and developing the Gwadar port and free zone.


On October 31, hundreds of Chinese trucks loaded with goods rolled into the Sost dry port in Gilgit-Baltistan as a multibillion-dollar project between Pakistan and China formally became operational.

The corridor is about 3,000-kilometre long consisting of highways, railways and pipelines that will connect China’s Xinjiang province to the rest of the world through Gwadar port.

India shouldn’t drag China into dispute with Pakistan over Kashmir: Expert

http://www.hindustantimes.com/world-news/india-shouldn-t-drag-china...

China needs to have access to ports such as Gwadar in Pakistan under the China-Pakistan Economic Corridor (CPEC) and the Belt and Road Initiative (BRI) to move its huge shipments of cargo to other parts of the world, said Wang Zhan, a deputy to the National People’s Congress (NPC), China’s Parliament, and president of the Shanghai Academy of Social Sciences.

“I know India has lot of disagreements with the CPEC to Gwadar port. But if you are Chinese, considering (the situation in) Malacca Strait and the South China Sea, you would be looking for alternative passageways. We have so much cargo, we surely need the ports. We have to pass by the Indian Ocean to reach Europe,” he said.

Speaking exclusively to Hindustan Times on the sidelines of the just-concluded NPC session, Wang said: “I know India and Pakistan have a dispute over (Kashmir.) If we go through the Kashmir area, which belongs to India, its a problem of sovereignty (for India) but now Pakistan has the right of administration (over PoK). So, it’s a problem between India and Pakistan and doesn’t relate to China.”

Wang, who is also managing director of the China Centre for International Economic Exchanges, said China wasn’t the first country to bring up the Silk Road plan to connect regions and continents.

“Japan brought up the Silk Road in 1990s, an American Harvard professor brought it up in 2005, and Hillary Clinton brought it up in 2011. They all brought up the Silk Road concept earlier than China,” he said, adding some proposals were north to south and China’s east to west.

“If all the projects in these plans could be realised, the countries touched in the plans would definitely develop, and the economic development would decrease the element of war and chaos,” he added.

Wang said China’s increasing investments in infrastructure, such as ports, in South Asian countries such as Sri Lanka is purely for economic reasons.

“For sure it’s for economic reasons. You can know the answer by the map. India is a peninsula, the trade between Europe and China have to pass by the sea near India and Sri Lanka. It’s decided by geography. We can’t go by Antarctica. If you think from China’s view, you will do the same,” he said.

Referring to China’s objections to India drilling for oil in the South China Sea, Wang blamed Vietnam for the confusion.

“In the 1970s, the Vietnamese had completely agreed that South China Sea belongs to China. Later, they occupied 29 islands and built infrastructure. India drilled for oil in the same area, so we protested. The South China Sea is China’s lifeline. It’s not necessary for India to get involved in the South China Sea disputes,” Wang said.

Feature: Port co-built with China fuels Pakistan's economic engine
Source: Xinhua| 2017-04-03 17:05:20|Editor: ying

http://news.xinhuanet.com/english/2017-04/03/c_136180263.htm

by Liu Tian
ISLAMABAD, April 3 (Xinhua) -- Gwadar, an poorly-known port town previously in Pakistan has been becoming a new economic engine for the country with the construction of a free zone co-built with China.
"We have finished 60 percent of the first-phase construction for the port's free zone, which is expected to be completed by the end of this year, one year earlier than we planned," Hu Yaozong, deputy general manager of the Gwadar Free Zone Company, told Xinhua in a recent interview.
Chinese engineers and their Pakistani counterparts are working around clock in the construction site with the hope of seeing the free zone is open to operation as early as possible.
The free zone is a key step towards developing the Gwadar port into an important regional hub that will benefit not only south Asia, but also the countries in central Asia and the Middle East.
The free zone, which covers about 923 hectares of land and will be developed in four phases. It is designed to take advantage of Balochistan's rich fishery and mineral resources to develop relevant industries for overseas market and to develop light industry for the domestic consumption.
As a part of the light industry plan, China's Linyi overseas market, a comprehensive shopping mall project, will soon be introduced into the free zone.
"It is quite alike the renowned Yiwu small commodities market in China. The Linyi market in Gwadar will develop an overseas warehouse so as to make their goods not only available in the Pakistan market, but also in markets around the region," said Hu.
According to Hu, the first round of investment has almost completed with projects on fishery and electric motors settled and business center enterprises moved in.
The second-phase construction of the free zone is featured with a huge stainless steel factory, which, Hu added, would create a considerable number of jobs for locals in Gwadar, which has a population of less than 100,000.
With the further development of the port and free zone, work forces in other villages around Gwadar are expected to flow into Gwadar.
According to the deputy general manager, a training school donated by China will be completed soon. After short-term training, local people are expected to find a position in the developing Gwadar, he said.
Munir Ahmad Jan, director general of the Gwadar Port Authority (GPA), also shows high expectations on Gwadar's future.
Besides Chinese and Pakistani investors, a lot of investors from other countries have come to the GPA to consult on business opportunities in the free zone, he said.
In 2016, the Pakistani government issued a financial act which ensured a 23-year tax exemption policy for the Gwadar free zone in a bid to attract more international investors.
Jan said that as businesspeople have seen the bright future of the Gwadar port, a lot of Pakistani real estate investors came to Gwadar to purchase land.
He said the land prices now in Gwadar are increasing fast and real estate related industries have witnessed real momentum in the small city.

Feature: Port co-built with China fuels Pakistan's economic engine
Source: Xinhua| 2017-04-03 17:05:20|Editor: ying

http://news.xinhuanet.com/english/2017-04/03/c_136180263.htm

Jan said that as businesspeople have seen the bright future of the Gwadar port, a lot of Pakistani real estate investors came to Gwadar to purchase land.
He said the land prices now in Gwadar are increasing fast and real estate related industries have witnessed real momentum in the small city.
"We feel that Gwadar's free zone area needs further expansion and we have requested for more area," said the official.
"China and Pakistan have an equally long history, but China developed rapidly due to sincere Chinese leadership and now it has become the leading economy in the world. We shall try to maximize our experiences, cooperation and assistance from China to develop our own country and improve common people's lives," Jan told Xinhua.
The development of the Gwadar port is not only in the economic field, but also at a broader social level.
A vessel carrying construction material from a China-donated emergency center reached Gwadar in March.
The medical center, which will come into service as early as in May, is designed to carry out basic diagnosis and treatment, conduct small surgeries and emergency rescues.
It will initially be operated by Chinese medical teams and be gradually handed over to the Pakistani side in the future.
In September last year, a China-donated primary school came into use in Gwadar. The school had planned to enroll about 150 pupils, but more than 300 students of different grades attend the school as many locals believed that the school had better teachers and facilities.
"We are very thankful to the Chinese people who have long been very active in Pakistan's infrastructural development. I think our relationship will be further strengthened with the passage of time because of the sincere leadership on both sides," Jan concluded.

#India's plan to develop #Iran's key #Chabahar port faces #US headwinds. #Gwadar #CPEC #Pakistan http://reut.rs/2sL5iTx via @Reuters

Western manufacturers are shying away from supplying equipment for an Iranian port that India is developing for fear the United States may reimpose sanctions on Tehran, Indian officials say, dealing a blow to New Delhi's strategic ambitions in the region.

Lying on the Gulf of Oman along the approaches to the Straits of Hormuz, the port of Chabahar is central to India's hopes to crack open a transport corridor to Central Asia and Afghanistan that bypasses arch-rival Pakistan.

India committed $500 million to speed development of the port after sanctions on Iran were lifted following a deal struck between major powers and Tehran to curb its nuclear program in 2015.

But the state-owned Indian firm that is developing Chabahar is yet to award a single tender for supplying equipment such as cranes and forklifts, according to two government sources tracking India's biggest overseas infrastructure push.

U.S. President Donald Trump denounced the nuclear agreement on the campaign trail, and since taking office in January has accused Iran of being a threat to countries across the Middle East.

Swiss engineering group Liebherr and Finland's Konecranes (KCRA.HE) and Cargotec (CGCBV.HE) have told India Ports Global Pvt Ltd, which is developing the deep water port, they were unable to take part in the bids as their banks were not ready to facilitate transactions involving Iran due to the uncertainty over U.S. policy, the two officials said in separate conversations with Reuters.

These firms dominate the market for customized equipment to develop jetties and container terminals. One official said the first tender was floated in September, but attracted few bidders because of the fear of renewed sanctions. That fear has intensified since January.

"Now the situation is that we are running after suppliers," one official said, speaking on condition of anonymity because of the sensitivity of matter.

A Konecranes spokeswoman declined to comment beyond confirming the company was not involved in the project.

Cargotec and Liebherr did not respond to requests for comment.

------

prodded in part by China's development of Gwadar port, which lies barely 100 km (60 miles) from Chabahar on the Pakistani coast, Indian Prime Minister Narendra Modi's government has unveiled massive investment plans centered around the Iranian port, offering to help build railways, roads and fertilizer plants that could eventually amount to $15 billion.

So far, even an initial credit line of $150 million that India wants to extend to Iran for development of Chabahar has remained a non-starter as Tehran has not been able to do its part of work.

"They have not sought the loan from us because they haven't awarded the tenders, either because of lack of participation or banking problems," said the second government official.

Ambassador Kumar said the Iran had indicated it would be sending proposals shortly to tap the credit line.

Meena Singh Roy, who heads the West Asia center at the Institute for Defence Studies and Analyses, a New Delhi think-tank, said increasing tension between Washington and Tehran would have an impact on the port project.

"The Chabahar Project has strategic significance for India," she said. "However ... nothing much seems to be moving due to new uncertainties in the region."

Iran and Pakistan: An Interview with Alex Vatanka

, Iran and Pakistan: Security, Diplomacy and American Influence


https://lawfareblog.com/iran-and-pakistan-interview-alex-vatanka


You also discuss the growth of anti-Shia sectarianism in Pakistan and the transition from Zulfikar Bhutto to Zia ul-Haq. Can you explain that a little bit?

Zulfikar Bhutto is a Pakistani Shia himself. He's not interested in the sectarian dimensions of this at all. In fact, when I studied Iranian-Pakistani relations from the 1940s all the way up to the present, you have to travel to the late 1970s—almost 40 years go by where the Sunni-Shia issue isn't mentioned at all in any of the cables coming out of London and elsewhere. It's a non-factor. Nobody cares.

It becomes an issue when Gen. Zia ul-Haq takes over and decides to Islamize Pakistani society the way he thinks it should be done, which is the hardline Sunni version of Islam, which in turn creates fear among the large (about 20 percent) Shia minority in Pakistan. But remember, Zia ul-Haq takes over in '77 and the Shah falls in '79, and if you look at that two-year period and say, how much fear and anxiety did ul-Haq's policies about becoming more of a Sunni state create in Tehran? The answer is, very little. What the Shah worries about is that Zia ul-Haq turns to the Gulf Arab states for patronage or guardianship, whatever you want to call it. It is only after Khomeini comes to power in Iran in '79 and who also plays the sectarian card that you see an element of sectarianism becoming more of a practice.

But again, I want to emphasize, even when Khomeini was alive in the 1980s, this is largely limited. When we think about 20 percent of Pakistan's Muslims are Shia, that you have a couple thousand that are joining radical groups doesn't tell me that sectarianism was the number one item on the agenda.

Why would Bhutto in the early 1970s turn to the Gulf Arab states? This is important. He's a Shia Pakistani leader. He's not driven by the fact that he shares being Shia with the Shah of Iran; in fact, he falls out with the Shah of Iran. Why? Because he sees the Shah of Iran looking down on Pakistan increasingly after Pakistan's defeat against India in 1971, and Zulifikar Bhutto feels the Shah thinks he is by nature going to lead the regional hegemon. Pakistan is not happy with that and when the Iranians start basically echoing what the Americans are asking the Pakistanis to do—primarily American demands that Pakistan cease any efforts in pursuit of nuclear weapons—when the Shah echoes that American line, from Zulfikar Bhutto’s point of view, then the Shah is no longer a partner as such, but somebody that's basically conveying Washington's concern to him.

So what does he do? Zulfikar Bhutto turns to the emerging oil-rich Gulf states—the Emirates, Qatar, Saudi Arabia. The fact that he was Shia had nothing to do with it. Bhutto is focused about India: Who can come to my aid, who can foot the bill for my nuclear program that I need to build up because I know that India is just about to get their hands on a nuclear weapon and I cannot lose that military competition on that front? There is no mention from the Saudis, the Emiratis, the Qataris—all of these famously Sunni nations—oh, we don't like Bhutto because he's Shia, you know? There's no sign of that. This sectarianism is something that unfortunately becomes much bigger of a player in the foreign relations of everybody in the last 15, 20 years because of a lot of other factors.

Development firm announce plans for first master community development for private market 

"We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." 

http://www.prnewswire.co.uk/news-releases/china-pak-investments-acq...

Leading private investment house China Pak Investment Corporation today announced its acquisition of the 3.6 million square foot International Port City project in the city of Gwadar. The investment company is currently revising the scheme's plans in line with international developments standards and will be developing the first of its kind $150 million gated master community tailor-made for the expected 500,000 incoming Chinese professionals expected in Gwadar by 2022.

(Photo: http://mma.prnewswire.com/media/564249/China_Pak_Hills_Phase_1.jpg )
The project which is expected to be renamed China Pak Hills hails an exciting new phase in the development of the port of Gwadar, the 'Gateway City' to the $62 billion China Pakistan Economic Corridor (CPEC), the largest unilateral foreign direct investment from one nation into another. The CPEC is set to catapult Pakistan's stature as a key global trade and economic hub and includes a bouquet of projects currently under construction that will not only improve Pakistan's infrastructure, but will deepen the economic and political ties between China and Pakistan.

Hao-Yeh Chang, Corporate Communications Director for China Pak Investments Corporation commented, "We believe Gwadar is following in the footsteps of Shenzen which represented a historic population rise, from a population of 30,000 in 1980 to 11 million people in 2017. Gwadar is poised to see massive population growth due to incoming industries, and we expect this to be one of the most strategic cities in South Asia." 

The final master plan for China Pak Hills is currently being refined in Hong Kong, and will feature a range of state-of-the-art amenities including an open-air shopping boulevard; indoor shopping mall; restaurants and eateries; an international school & nursery; six community parks; indoor and outdoor sports facilities including tennis courts and a resident's gymnasium; a water desalination plant and recycling centre. China Pak Hills will also be home to the Gwadar Financial District, catering to the growing financial sector and adding much needed A Grade office space to Gwadar's growing market.

One Investments Ltd, a UK-based property investment company, headed by Zeeshan Shah, have been appointed as Global Master - Agent for the Development. "China Pak Hills is a unique and exciting opportunity. The level of investment and commitment made by the Chinese government in the CPEC guarantees that Gwadar is going to be one of the most important trading and access points in the World. Its geographic position, combined with the infrastructure being created through the CPEC means that it can only grow exponentially."

The China Pak Hills master-community is being developed by China Pak Investments and is soon expected to announce options for private sale of limited plots to end purchasers.

Experts divided on economic benefit of Chabahar Port
SANJAY KUMAR | Published — Monday 4 December 2017

http://www.arabnews.com/node/1203746/world

India’s Ministry of External Affairs said in a statement that the port would “provide alternative access to landlocked Afghanistan into regional and global markets… an integrated development of connectivity infrastructure including ports, road and rail networks would open up greater opportunities for regional market access and contribute towards the economic integration and benefit of the three countries and the region.”
However, Phunchok Stobdan, a former Indian ambassador to Kyrgyzstan and a distinguished academic, questions the economic viability of the port.
“In terms of slogans, yes, you can call it a new era of connectivity. But how much substance is there, we don’t know. It is just a beginning. It is more about political opportunism than economic benefits, as I see it,” said Stobdan, who is also a senior fellow at New Delhi-based think tank, Institute of Defence Studies and Analysis (IDSA).
“What do you want to export and what you want to import?” he continued. “There are no high-value items to trade between India and Afghanistan.
“I feel the Indian government should also work out some mechanism to open the Wagah border,” he continued. “But Pakistan has been using the strategy of denial for very long time. It is working in their favor. It is a larger political issue; it is not an economic or connectivity issue.”
Stobdan also claimed that “the significance lies in the fact that, before Trump puts (forward) lots of objections, India has been brought into the picture.”
The Chabahar port, located in the Sistan-Balochistan province of Iran’s southern coast, is seen by some as a counter to Pakistan’s Gwadar Port — which is being developed with Chinese investment and is located around 85 km from Chabahar — and, by extension to the China-Pakistan Economic Corridor (CPEC).
“We can say lot, but the economy will speak,” Stobdan said. “You think the Chinese did not know about the Chabahar port? They knew. The market is in Pakistan. The market is in India. The market is not in the Sististan-Baluchistan area.”
Afghan ambassador Abdali said: “The Chabahar port will be open to everyone. All the stakeholders and I hope that no one thinks of it as a counter to any other initiatives. At the same time, I consider it a major development for the whole region.”

Hoping to extend maritime reach, #China is lavishing vast amounts of aid on a small #Pakistani fishing town of #Gwadar to win over locals and build a commercial deep-water port that #America and #India suspect may also one day serve Chinese navy. #CPEC

https://www.reuters.com/article/us-china-silkroad-pakistan-insight/...

Beijing has built a school, sent doctors and pledged about $500 million in grants for an airport, hospital, college and badly-needed water infrastructure for Gwadar, a dusty town whose harbor juts out into the Arabian Sea, overlooking some of the world’s busiest oil and gas shipping lanes.

The grants include $230 million for a new international airport, one of the largest such disbursements China has made abroad, according to researchers and Pakistani officials.

The handouts for the Gwadar project is a departure from Beijing’s usual approach in other countries. China has traditionally derided Western-style aid in favor of infrastructure projects for which it normally provides loans through Chinese state-owned commercial and development banks.

“The concentration of grants is quite striking,” said Andrew Small, an author of a book on China-Pakistan relations and a Washington-based researcher at the German Marshall Fund think tank.

“China largely doesn’t do aid or grants, and when it has done them, they have tended to be modest.”

Pakistan has welcomed the aid with open hands. However, Beijing’s unusual largesse has also fueled suspicions in the United States and India that Gwadar is part of China’s future geostrategic plans to challenge U.S. naval dominance.

“It all suggests that Gwadar, for a lot of people in China, is not just a commercial proposition over the longer term,” Small said.

The Chinese Foreign Ministry did not respond to a request for comment from Reuters.

Beijing and Islamabad see Gwadar as the future jewel in the crown of the China-Pakistan Economic Corridor (CPEC), a flagship of Beijing’s Belt and Road initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

The plan is to turn Gwadar into a trans-shipment hub and megaport to be built alongside special economic zones from which export-focused industries will ship goods worldwide. A web of energy pipelines, roads and rail links will connect Gwadar to China’s western regions.

Port trade is expected to grow from 1.2 million tonnes in 2018 to about 13 million tonnes by 2022, Pakistani officials say. At the harbor, three new cranes have been installed and dredging will next year deepen the port depth to 20 meters at five berths.

But the challenges are stark. Gwadar has no access to drinking water, power blackouts are common and separatist insurgents threaten attacks against Chinese projects in Gwadar and the rest of Baluchistan, a mineral-rich province that is still Pakistan’s poorest region.

Security is tight, with Chinese and other foreign visitors driven around in convoys of soldiers and armed police.

Beijing is also trying to overcome the distrust of outsiders evident in Baluchistan, where indigenous Baloch fear an influx of other ethnic groups and foreigners. Many residents say the pace of change is too slow.

“Local people are not completely satisfied,” said Essar Nori, a lawmaker for Gwadar, adding that the separatists were tapping into that dissatisfaction.

First #Djibouti ... now #Pakistan's #Gwadar tipped to have #China's naval base. #India #Iran #Chabahar #Navy #Military #Hormuz #RedSea https://sc.mp/2CINAJb via @SCMP_News

Beijing plans to build its second offshore naval base near a strategically important Pakistani port following the opening of its first facility in Djibouti on the Horn of Africa last year.

Beijing-based military analyst Zhou Chenming said the base near the Gwadar port on the Arabian Sea would be used to dock and maintain naval vessels, as well as provide other logistical support services.

“China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port,” Zhou said.

“It’s a common practice to have separate facilities for warships and merchant vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services.”

Another source close to the People’s Liberation Army confirmed that the navy would set up a base near Gwadar similar to the one already up and running in Djibouti.

“Gwadar port can’t provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support,” the source said.

The confirmation follows a report this week on Washington-based website The Daily Caller in which retired US Army Reserve colonel Lawrence Sellin said meetings between high-ranking Chinese and Pakistani military officers indicated Beijing would build a military base on the Jiwani peninsula near Gwadar and close to the Iranian border.

Sellin said the plan would include a naval base and an expansion of the existing airport on the peninsula, both requiring the establishment of a security zone and the forced relocation of long-time residents.


Gwadar port is a key part of the China-Pakistan Economic Corridor, a centrepiece of Chinese President Xi Jinping’s broader “Belt and Road Initiative” to link China through trade and infrastructure to Africa and Europe and beyond. The corridor is a multibillion-dollar set of infrastructure projects linking China and Pakistan, and includes a series of road and transport links.

Sellin also said the Jiwani base could be “signs of Chinese militarisation of Pakistan, in particular, and in the Indian Ocean”.

Chinese military observers said Gwadar had great geostrategic and military importance to China but China was not about to “militarise” Pakistan.

Zhou said China wanted better access to the Indian Ocean, which was now largely limited to the Strait of Malacca in Southeast Asia. The Gwadar port could be a transit hub for sea and land routes once the corridor’s railway was up and running, helping improve and cut the cost of logistics for China.

“The Chinese naval flotilla patrolling in the Gulf of Aden and other warships escorting Chinese oil tankers in the Indian Ocean need a naval base for maintenance as well as logistical supplies because they can’t buy much of what they need in Pakistan,” Zhou said.

Rajeev Ranjan Chaturvedy, a research associate at the Institute of South Asian Studies at the National University of Singapore, said India was well aware of China’s plans in Pakistan.

“China finds it very useful to use Pakistan against India and ignore India’s concerns, particularly on terrorism issues. That has created a lot of stress in the relationship between Beijing and Delhi,” he said.

“[But] Indian naval capabilities and experience in the Indian Ocean region are fairly good. Much better than Pakistan and China.”

Dubai vs Gwadar: port cities chart a course for share of world’s economy

By Ashraf Aboul-Yazid and 3 collaborators

https://www.wikitribune.com/story/2018/01/11/pakistan/dubai-vs-gwad...

A strategic port at the confluence of the Arabian Sea and the Gulf of Oman in southern Pakistan is continuing to push its rival megaports in the United Arab Emirates, pitting the lesser-known Gwadar against Dubai in a bid to move goods faster and more cheaply to some of the most populated countries of the world. 

“Many economic analysts believe that Gwadar is another Dubai emerging on the world’s map,” said Tariq al-Shammari, a writer and self-described activist, who wrote about the expansion of the Pakistani port for OpenDemocracy, a UK-based political website. “Gwadar port will become the main sea gate for Central Asia.”

As it becomes easier to send goods through Gwadar, Dubai may see a threat to its regional influence, al-Shammari said.

“This challenging point, recently, has caused a silent economic war in the Gulf of Oman between two groups of countries; Pakistan, China and Qatar on one side, India and the UAE on the other,” he wrote.

How the ports stack up

Dubai’s two major commercial ports — Port Rashid and Port Jebel Ali — provide significant revenue to the UAE. Jebel Ali has the biggest man-made harbor in the world and the biggest Middle East port, and more than 5,000 companies from 120 countries rely on its services for goods ranging from consumer items to heavy construction machinery.

Gwadar’s deep sea port is strategically located to provide easier access to the Gulf region and the Middle East for China, especially the northwest Xinjiang region, and central Asia countries. The overland distance from Gwadar to Kashgar, in China, is 1,500 miles, while it is another 2,500 miles to move across China to Shanghai. Cargo ships have to move double the distance, again, to reach the Middle East waters.

The Gwadar corridor will reduce the transport time for goods to Western China by about 60 or 70 per cent, according to Liu Ying, a research fellow at the Chongyang Institute who studied the economics of the port (The Telegraph).

China’s influence

The Gwadar port is a key project in China’s One Belt, One Road initiative (South China Morning Post), which seeks to build strong economic connections between China and the countries along the old Silk Road – and well beyond.

Gwadar was built with financial and technical assistance from China, which took operational control after the Port of Singapore Authority pulled out of a 40-year port management and development contract because it was unable to get the land it sought to develop a free trade zone. The Gwadar port had been unable to become fully operational because of unsettled issues between Islamabad and the port authority.

The pivot to China “will also enable the dragon to swim in the Indian Ocean, which is strategically important for China as it expands its influence across the region, according to The National, a newspaper based in Abu Dhabi in the United Arab Emirates.

“To ensure the security of shipments along existing routes, a Chinese naval presence at Gwadar could also patrol the Indian Ocean sea lanes. Of concern to Washington and New Delhi is the Chinese naval presence near the Strait of Hormuz and its strategy of building a ‘string of pearls’ presence on the Indian Ocean rim,” the newspaper reported.

The Gwadar Development Authority is working on developing residential and commercial areas at the port, spurring growth in real estate and services. As observers note, some of the projects mirror those in Dubai, of which it may always be more of “sister city,” than a true rival (The Express Tribune).

Mega #oil city to be constructed in #Gwadar as part of #CPEC. Plan includes oil terminal and storage tanks, oil #refinery and #petrochemical #industrial complex. #Pakistan #China

https://www.thenews.com.pk/print/271367-mega-oil-city-to-be-constru...

ISLAMABAD: Pakistan has decided to construct a mega oil city at Gwadar on 80,000 acres under much hyped China Pakistan Economic Corridor (CPEC).

This mega oil city will be used for transportation of imported oil through the Gwadar Port to China. The oil will be imported from Gulf and will be stored at this proposed mega Gwadar oil city.

The distance to China will be reduced, and it will take just seven days to cover the distance from Gwadar to Chinese border as import through western China took almost 40 days by covering double distance.

“We have forwarded PC-1 to the Ministry of Petroleum for acquiring 80,000 acres for this mega oil city at Gwadar with estimated cost of Rs10 billion. There will be additional cost for construction of its storage and other aligned facilities with the help of investments,” Director General, Gwadar Development Authority (GDA), Dr Sajjad H Baloch, told Islamabad based journalists who visited the Gwadar Port last week. This visit was arranged by the Planning Commission in order to show case different ongoing projects under CPEC.

A refinery, petrochemical industries and storage will be established in the oil city, he added.

The Gwadar oil city, he said, would be used for storing oil for its onward transportation to China. Usually, it takes 40 days for vessels to transport oil to China but via Pakistan it will reach China within 7 days, he added. He said that the total area of Gwadar Model City is 290,000 acres which includes 160,000 acres of residential area while the remaining is for industrial purposes. A Chinese company is working on the Model City Plan and it will be ready by August 14, 2018.

To another query regarding different measures for overcoming water shortages at Gwadar, he said that the current water requirement stood at six million gallons per day and there is no direct water supply taking place to the area. Two MGD water is being supplied from two water small dams through tankers and nearest distance is almost 70 kilometres.

“We have a deficit of four million gallons per day in water supply to the area,” he said and added that by 2020, the water requirement of Gwadar would be 12 million gallons per day, for which additional arrangements were made to get 10 million gallons of water.

New Gwadar International Airport: Earlier, the journalists visited the site of proposed new airport at Gwadar. The China Airport Construction Group Engineering Company representative Jianxin Liao told the visiting journalists that they were conducting soil investigation on the basis of which, the design of new airport at Gwadar will be finalised. He said that the procured land for this new airport stood at 4,300 acres, and this airport will possess capacity to handle one million passengers on annual basis. He said that by April this year the design will be completed after which the cost of the project will be estimated. It will be the biggest airport of Pakistan.

The Civil Aviation Authority (CAA) representative Zohaib Soomro said that the initial cost of the project was estimated at $228 million, but its cost would be finalised after completion of design, and it would be estimated again.

The sources said that it would be premature to give any assessment related to cost, but it would be more than $2 billion to $2.7 billion at least if we want to construct state of the art airport in accordance with international standards.

India Lacks a Competitive Trade Strategy for Chabahar
India needs a sound economic and political strategy to maximize the benefits it receives from Chabahar.

https://thediplomat.com/2018/01/india-lacks-a-competitive-trade-str...

The first shipment to pass through the port of Chabahar to Afghanistan was celebrated with much fanfare and excitement this late October. India, with the largest economy in South Asia and an ever-rising military footprint has much to be proud of regarding this development. In the face of regional tensions with its western neighbor, Pakistan, India has chosen to circumvent the nation in order to open new trade routes with Afghanistan and greater Central Asia. Delhi may now find it easier to further diversify its trading partners, strengthen its relations with regional neighbors, and simultaneously compete with China’s Belt and Road Initiative.

While the potential for Chabahar’s positive externalities remain numerous, they also remain largely hypothetical. The completion of the project does not necessarily guarantee an increase in Indian economic influence, considering the economic and political realities that Delhi presently faces on the domestic front and in the region. The competitiveness of Indian exports, the security situation in Afghanistan, and regional geopolitics pose several hurdles that India must overcome.

Domestically, India faces a slowing economy that has had six continuous quarters of decreasing growth. The economy rebounded in the latest quarter but growth forecasts for the economy continue to be revised downwards due to recent poorly executed economic reforms (the Goods and Services Tax and demonetization). This becomes further troubling as the Indian economy continues to be faced with a critical job shortage that must incorporate 12 million young people every year. Additionally, India’s banking sector continues to pose risks to the economy with non-performing assets (bad loans) continuing to rise to unprecedented levels. In light of domestic economic challenges, Delhi would be wise to draft a comprehensive economic strategy to justify the cost of the overall investment in Chabahar and the overall multinational initiative.

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Currently, India has allocated around $2 billion to the overall project — $500 million dollars has been allocated to the construction of Chabahar port to increase cargo handling capacity and $1.6 billion to the construction of a rail link that will connect the port to the city of Zahedan. The city borders Afghanistan and will allow goods to flow into the country through already built infrastructure. Chabahar port will also serve as a starting point for the over-arching International North-South Trade Corridor (INTSC) that aims to connect India, Iran, Russia, and various Central Asian states. Remarks by Indian Prime Minister Narendra Modi and various analysts claim that the new port will revolutionize trade and commerce. This may prove to be true if India is able to drastically improve the efficiency of its manufacturing sector and increase the demand for Indian goods.

Yet, the current status quo will prove difficult to change considering both the cost and share of total exports India sends to Central Asia (including Afghanistan) when compared to other nations, specifically China. In early July, the Minister of State for Micro, Small, and Medium Enterprises, Haribhai Chaudhary, was asked why domestically produced goods cost more than those imported from China. Chaudhary responded, “The products manufactured in China are reportedly of lower price mainly because of their opaque subsidy regime and distorted factor prices.” India’s economy is primarily based on the services industry, which composes more than half of its GDP, compared to industry (including manufacturing), which only composes a little more than a quarter. China’s economy on the other hand, is primarily composed of industry, giving it greater leverage and ability to compete with Indian goods.

Pakistan, China Jointly Showcase Arabian Sea Gwadar Port

https://www.voanews.com/a/pakistan-china-jointly-showcase-arabian-s...

Pakistan and China have jointly organized the first international exhibition to showcase the significance of the Arabian Sea Gwadar Port and its economic free zone as an emerging international business hub.

The warm water deep sea commercial port, which overlooks some of the world’s busiest oil and gas shipping lanes, has been built and recently expanded with Chinese financial assistance.

More than 200 companies from both China and Pakistan were present in Monday’s event at Gwadar, while six Chinese provinces also sent their representatives, said Beijing’s ambassador to Islamabad, Yao Jing, while addressing the ceremony.

Foreign diplomats and business leaders were also invited to the opening session of the two-day event.

Chinese operators of the port say the Gwadar Free Zone shall bring extensive economic benefits, like a tax holiday for 23 years and land lease up to 99 years to the upcoming businesses along with other incentives and pro-business policy frame work for general trade, services, manufacturing, logistics, trans-shipment and bunkering business.

Direct benefit for Pakistan

Gwardar port is to be a trans-shipment hub connected to landlocked western Chinese regions, giving Beijing a secure and shorter international trade route through Pakistan.

Gwadar is celebrated as the gateway to the China-Pakistan Economic Corridor, or CPEC, a flagship of President Xi Jinping’s global Belt and Road Initiative to build a new “Silk Road” of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

Under CPEC, networks of road, communications, rail, economic zones and power plants are being built and upgraded in Pakistan with an estimated Chinese investment of $62 billion.

Around $27 billion in projects are underway or completed, including “early harvest” energy projects, adding much-needed electricity to Pakistan’s national grid.

“I would like to say that the Chinese government will continue to invest and send our input to further support the development of this project. Also, we will encourage Chinese companies and Chinese businessmen to join the development of Gwadar,” vowed Chinese envoy Jing.

Wider benefit planned

During the ceremony, Pakistani Prime Minister Shahid Khaqan Abbasi said CPEC is the “most visible part” of China’s of BRI, saying the mega project will cater not only to the needs of his country, but to the needs of the region.

Officials expect Gwadar’s cargo handling capacity to increase to 1.2 million tonnes by the end of this year and it will be able to process about 13 million tons by 2022, making it the largest port in South Asia.

Chinese partners say they would need around 38,000 skilled workers by 2023 for the Free Zone, according to Dostain Jamaldini, Chairman of the Gwadar Port Authority. He says of the 2,500 current workers, around 500 are Chinese nationals and the rest are locals.

An international airport with a 12,000 meter runway is being constructed in the once sleepy town with a Chinese financial grant of around $300 million.

The Arabian Sea port is located in Pakistan’s largest province of Baluchistan where militant groups, including Islamic State, and a low-level insurgency remain key security challenges to CPEC.

Additionally, the corridor runs through Pakistan-controlled portion of the divided Kashmir region, drawing objections from rival India. The United States suspects China may also turn Gwadar into a military base.

But Chinese officials reject those concerns, maintaining “CPEC is merely an economic cooperation project,” and Islamabad dismisses New Delhi’s opposition as politically motivated.

#Pakistan Mulls #US, #NATO Offer to Ship #Afghan Supplies Through #Gwadar Port as Shorter, Cheaper Route. #CPEC

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Pakistani officials say the U.S.-led NATO military coalition in Afghanistan has offered to import vital supplies through the southwestern port of Gwadar, calling it a much shorter and economically viable route into landlocked Afghanistan.

The federal minister for maritime affairs, Hasil Bizenjo, says NATO representatives proposed the idea at a recent meeting he convened with local and international business leaders.

“They (NATO) are very interested and we are working on it,” Bizenjo told VOA in an interview.

The coalition of about 16,000 troops, known as Resolute Support, mostly consists of Americans advising and assisting Afghan forces in their battle against the Taliban and other militant groups.

The military mission is dependent on ground lines of communication and air lines of communication, known as GLOC and ALOC, through Pakistan for receiving supplies.

Currently, NATO supplies are shipped through the southern Pakistani port of Karachi, where they then are placed on trucks and transported on a week-long journey to neighboring Afghanistan via the northwestern Torkham border crossing.

“NATO people told us it would be extremely convenient for them in terms of quick transportation of supplies from Gwadar directly to Kandahar. They are very interested and we are working on it,” Bizenjo told VOA in an interview.

The Chinese-built, Arabian Sea port of Gwadar is in the southwestern Baluchistan province adjoining Afghanistan's Kandahar province, which hosts one of the five U.S. military bases in the war-shattered country.

Gwadar port is connected to the Chaman border crossing with Kandahar through a newly constructed highway, enabling truck convoys to reach Afghanistan in fewer than 24 hours.

Pakistani minister Bizenjo said companies dealing in Afghan transit trade also want their cargo to be shipped completely through Gwadar.

“Another meeting with Pakistani business and NATO representatives and Afghan transit trade dealers has also been scheduled to further the discussions, Bizenjo said, without saying when.

Pakistan earned the status of non-NATO ally for allowing U.S.-led international forces to use the GLOC and ALOC supply lines to invade Afghanistan in 2001 and oust the Taliban from power for harboring al-Qaida leaders. In return, Islamabad received U.S. security assistance and civilian aid.

The proposal to redirect U.S. and NATO military cargo from Karachi to Gwadar comes as Pakistan’s traditionally rollercoaster relations with the United States suffer fresh setbacks.

Connecting Balochistan
FWO was tasked to lay a network of roads for the much needed connectivity of Gwadar Port with upcountry as part of CPEC. The Frontier Corps was tasked to maintain the law and order throughout the vast province, especially along the highways. 
FWO is presently constructing 873 km of roads in Balochistan as part of Western Route of CPEC to operationalize Gwadar Deep Sea Port by enhancing its connectivity. The road projects being undertaken are:


https://defence.pk/pdf/threads/balochistan-cpec-and-the-roads-to-de...

Hoshab-Turbat-Gwadar Section (M-8) 193 Km 
Khuzdar-Shahdadkot Section (M-8) 58 Km 
Sorab-Besima-Nag-Panjgur (N-85) 430 Km 
Kalat-Quetta-Chaman Road (N-25) 110 Km 
Wagum-Rud-Khajuri Road (N-70) 64 Km 

M-8 Motorway 
The M-8 Motorway reflects the vision of a progressive Balochistan. It is the first motorway of the province which will connect Gwadar with Indus Highway. The alignment of this road goes along Gwadar, Turbat, Hoshab, Awaran, Khuzdar and Rattodero (near Larkana). Traversing through the vast expanse of interior Balochistan the highway shall usher in a new era of socio-economic development and prosperity. Presently the trade trucks going upcountry have to take the longer route via Karachi which results in increase of logistic costs. With the direct and shorter route of M-8 the distance from Gwadar to Indus Highway will be reduced by nearly 400 km.
The Gwadar, Turbat, Hoshab section of M-8 is a vital part of CPEC’s Western, Central and Eastern Routes and will serve all Gwadar bound traffic. The road has been constructed by FWO in most challenging and hostile terrain and security environment.



N-85 Highway 
The N-85 Highway is also known as the Gwadar-Quetta link. It starts from Hoshab and moves northwards towards Quetta passing through Panjgur-Besima and Sorab from where it merges with the Karachi-Quetta Highway (N-25) at Kalat. The 448 km highway passes through the remote towns of interior Balochistan and provides a direct and shorter link between Gwadar and Quetta. Construction of this highway was a big challenge due to harsh terrain and security hazards. FWO has mobilized its resources at 14 locations to complete the project this year. The highway is being regarded as a catalyst for the progress and development of interior Balochistan.


Kalat-Quetta-Chaman Road 
The Kalat-Quetta-Chaman road (N-25) serves as an important trade route between Pakistan and Afghanistan. The 230 km long road is divided into four sections of which Section 1 and 3 have been completed while Section 2 i.e., Khad Koocha to Quetta (54 km) and Section 4 i.e., Jungle Piralizai to Chaman (57 km) are being completed by FWO. Also known as RCD Highway this road constitutes the shortest access from Gwadar and Karachi ports to Afghanistan. Substantial progress has been achieved and the project is scheduled to be completed this year.


Despite serious logistic constraints in wake of remoteness of the area and unfavourable security situation, Pak Army is determined to complete this onerous but formidable task within stipulated timeline. The FWO has already completed 648 km of roads out of 873 km, which is a record by any international standard. Completion of these projects by end of 2016 would effectively link Gwadar Deep Sea Port with China through Karakoram Highway (KKH), Afghanistan and Central Asia through Chaman, Central Trade Corridor and Torkham.

Lijian Zhao 赵立坚‏Verified account
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Gwadar update: COSCO will start a container shipping line at Gwadar port on every Wednesday from 7 March 2018. Businessmen who are interested to export or import specially sea food from Gwadar to any destination to China or any destination globally, can take benefit of it.

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