CPEC - a highway to regional peace and prosperity
- By Sajjad Malik
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E-mail China.org.cn, April 22, 2015
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Visiting Chinese President Xi Jinping (L) holds talks with Pakistani Prime Minister Nawaz Sharif in Islamabad, capital of Pakistan, April 20, 2015. [Photo/Xinhua] |
The dream of the China-Pakistan Economic Corridor (CPEC) project linking China's landlocked far-western region to the Arabia Sea in Pakistan's southwest is fast becoming a reality. The multi-billion-dollar project was launched during the visit of Chinese President Xi Jinping to Pakistan, who paid his first two-day official trip to Islamabad.
The corridor is not just a complex project of highways, railways and business parks, but an entirely new development model. It is a win-win deal for Pakistan and China that further cements their economic ties and long-term partnership.
The bulk of the capital is expected to come from China in the form of investment. There is also a component of soft loans for Pakistan for infrastructure projects. The corridor will be developed in phases, and the early projects costing about 28 billion dollars will be ready by the end of 2018.
The project has four components. The priority will be given to several energy projects which will get the bulk of the investment to generate electricity needed to run other business projects. The two sides have envisaged solar, wind, thermal and water based electricity generation projects to create about 16,400 MW of electricity. The projects would cost about 35 billion dollars. Major projects would be completed in three years, to provide about 10,400 MW of electricity, as Pakistan is already facing energy shortages and the success of the corridor depends on the uninterrupted supply of power.
The second key part of the CPEC is a network of roads and railways. About 11 billion dollars will be spent on infrastructure projects which will create a direct link between Pakistan and China. Work on some of the projects has already started.
The third component of the economic corridor is the development of the Gwadar port, which has already been given to the Chinese with operational control lasting 40 years. The Chinese government will construct a container handling facility, a major highway and an international airport. The aim is to transform the backward city of Gwadar into an international trading city with all modern life amenities.
The fourth part of the plan is to set up economic zones to allow Chinese companies to relocate some of their industries close to the Gwadar port for export to Europe and other countries. A major business area will be developed closer to Gwadar.
The CPEC is a broad project meant for the development of not only Pakistan and China but also for the entire region.
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