ISLAMABAD - A parliamentary committee was Monday informed that Pakistan wants to change the funding mode of ML-I Project (Karachi to Peshawar Railway) from loans to Built Operate and Transfer (BOT) mode.
Senate Special Committee on China-Pakistan Economic Corridor (CPEC) that met with Senator Sherry Rehman in chair took strong cognizance of the fact that the sole CPEC project on Western Project is still in consultancy stages and no work has been completed so far.
While briefing the Senate Special Committee on China-Pakistan Economic Corridor (CPEC), officials of the Planning Ministry informed that the DI Khan-Zhob Motorway Project of the Western Route of CPEC is still in the consultancy stage and no actual work has initiated as of today. This road is the only project of the Western Route that has Chinese component in it and all other development on Western Route will be done through PSDP funding, the committee was told.
The chairperson along with other members of the committee sought details on the timelines of this project and decided to call a separate meeting on the Western Corridor and development work in Gwadar.
The minister for planning told the committee that the priorities of different energy related projects have been revisited considering those projects on priority which will use indigenous energy resources and shifting those which require materials to be imported on back burner. This includes packing up of the Coal Power Project in Rahim Yar Khan of 1380 MW because the coal was to be imported and prioritising hydel power projects in AJ&K.
The committee also sought details of different modes of financing for different projects under CPEC so as to be able to better analyse the nature of every project along with timelines for work progress done so far and for future development.
The committee was given details of all five components of CPEC which involves the corridor, energy projects, infrastructure development, industrial production and development of Gwadar.
The committee was told that the projects in Gwadar amount to $780.6million. The minister told the committee that ML-I (Peshawar to Karachi railway line) is one of the most strategic components of CPEC and has now been put on high priority.
He said for any investment to come the economic viability and flow of traffic has to be considered.
The chairperson noted that the prospects of local job creation and identifying the framework of cooperation for every project are of high significance. Pakistan wants to undertake the project on BOT basis, said the minister.
Earlier it was planned that China will provide loan for $ 9 billion ML-I project.
The meeting was attended among others by Senators Dr Sikandar Mandhro, Muhammad Ali Khan Saif, Ghous Muhammad Khan Niazi, Muhammad Ali Shah Jamot, Nuzhat Sadiq, Sardar Muhammad Yaqoob Khan Nasar, Muhammad Usman Khan Kakar, Muhammad Akram, Muhammad Azam Khan Swati, Atta ur Rehman, Samina Saeed, Sitaray Ayaz, Minister for Planning, Development and Reforms Khusro Bakhtiar, Secretary Planning Zafar Hassan, Senior Joint Secretary Tariq Jaffery and other officials from the ministry.