ISLAMABAD - A parliamentary committee was Monday informed that the non-provision of PSDP allocations by the federal government and the delay by China in the approval of projects is affecting work on the western route of CPEC. Meanwhile, parliamentarians have directed the government to accelerate work on the western route of CPEC.
The government has not released the PSDP allocated funds for the CPEC projects which has brought work on the roads projects to stand still, said an official of the Ministry of Communication while briefing the Senate Standing Committee on Planning, Development and Reforms here. The Senate standing committee that met with Senator Agha Shazeb Durrani in chair was informed that due to lack funds and delay in releases work on the western route of CPEC from Hakla to DI Khan could not be started. Similarly, delay on the part of China in the approval of project construction work on the western route from D.I.Khan to Zhob is affecting work. The committee discussed the latest situation and implementation status of CPEC projects.
Senator Usman Kakar alleged that from the past two and a half years there is no developmental work on the western route . He said that there is only Rs 6 billion allocation in the PSDP for the western route during the current fiscal. Chairman of the committee directed to accelerate work on the western route of CPEC and give final shape to the project.
While briefing the committee, project director CPEC, Hassan Daud Butt said that Pakistan has acquired $6 billion loan for infrastructure projects. He said that there is total of $36 billion investment made by China ’s companies on 22 development projects including infrastructure and energy projects. He said that work is underway on 15 energy projects of 11,110 MW and four projects of 2544 MW are actively promoted. Project Director CPEC told the committee that so far the loan of $8.13 billion for railways project ML-1 has not been received.
He said that total portfolio of CPEC projects is $47.967 billion including $34.18 billion of energy projects. There is no loan in the investments of $34.18 billion as it is in the IPP financing mode.
The member finance of Planning Commission informed the committee that the price of electricity per unit would be decreased in coming days due to competitive bidding process. He said that the price of electricity is Rs 8.5 per unit at imported coal and Rs 8 per unit at local coal and Rs 9.5 at LNG fuel. He said that the price of electricity has been fixed at Rs 5 per unit on solar after bidding process.
About the security of the CPEC projects, the committee was informed that a total of 9,929 military troops and 4,502 civilians are available for the security of the CPEC projects. He said that a total of 10,000 Chinese and 65,000 Pakistanis are working on the various CPEC projects. He said that a total of eight investors, four each from Pakistan and China, have signed a memorandum of understanding (MoU) in Gwadar Free Zone. The members of the committee, particularity belonging to Balochistan, expressed serious concern over the shortage of water and electricity in Gwadar city. They said that 300,000 gallons of water is being supplied to Gwadar City per day while total demand is 6 million gallons of water per day. The committee recommended the government to resolve issues of water, electricity and security in Gwadar port city. The committee chairman also directed that the local people should be appointed for the security of the CPEC projects.