ISLAMABAD – Pakistan has proposed China that broad terms and conditions for financing of Main Line One (ML-1) railways project may be considered by the Chinese side so that financial close can be achieved in timely manner.
Similarly, Pakistan has asked China that some energy projects under CPEC have very tight construction schedule, stressing need for the financial close and construction of relevant projects as soon as possible.
According to the official documents available with The Nation, in the 7th JCC meeting held here in November, it was agreed that in view of the progress of the energy projects, the project sponsors and PPIB should make reasonable arrangement for the extension in financial close and construction through friendly negotiations with the power Generation policy 2015 Framework.
JCC asked Joint Working Group on Energy to carry out joint studies on the current power status, future load forecast as well as the potential power market in Pakistan and to launch the 3rd expert panel meeting as soon as possible for this purpose.
It was also agreed to resolve the issue of supply of water for SSRL Thar Coal Block-I &SEC Mine Mouth Power Plant during its construction and operating period. The Pakistani side also agreed to facilitate the early resolution of EPC provincial sale tax issues so that CPEC power generation projects are not adversely affected. It was further agreed by Pakistani side to consider the request of not adopting differential electricity charge policies towards CPEC power projects designed and constructed in Chinese standards, technologies and equipment.
On the railway project, it was agreed that that given the strategic importance of ML-I project, financing arrangement would be made proactively and work on the ground could be started early. Pakistan proposed that broad terms and conditions for financing may be considered by the Chinese side so that financial closed can be achieved in timely manner. Pakistan side further proposed that financing arrangement for the project may have favorable terms and conditions which Chinese side agreed to consider in financial negotiations.
Pakistan proposed the extension of ML-I to Torkham border and both sides agreed to discuss the extension of ML-I at technical level on completion of the feasibility study being carried out. The decision was endorsed by the JCC.
Regarding Special Economic Zones, the Chinese side noted that KP pays high attention to the development of SEZs and it has especially done abundant work in Rashakai SEZ. It was suggested to make full use of the positivity of KP to promote the construction of Rashakai at earliest.