Understanding Socio-Economic Evolution of CPEC in

Belt & Road Initiative

presented by Aasim Siddiqui Chairman - All Pakistan Shipping Association (APSA) OBOR ONE BELT – ONE ROAD The BELT & ROAD INITIATIVE OBOR BELT & ROAD INITIATIVE A GAME CHANGER Accelerating the Trade Growth

The Silk Road Economic Belt concept was introduced by In October 2013, President Xi proposed building a close- Chinese President Xi Jinping during his visit to knit -ASEAN community and offered guidance on Kazakhstan in September 2013 and suggested that constructing a 21st Century to China and may cooperate to build a Silk promote maritime cooperation, to finance infrastructure Road Economic Belt. construction and promote regional interconnectivity and economic integration.

SILK ROAD ECONOMIC BELT MARITIME SILK ROAD

The Silk Road Economic Belt focuses on bringing The 21st-Century Maritime Silk Road is designed to go together China, Central Asia, Russia and Europe (the from China's coast to Europe through the South China Baltic) linking China with the and the Sea and to the in one route, and from Mediterranean Sea through Central Asia China's coast through the South China Sea to the South Pacific US$1TRILLION US$2.5 TRILLION Chinese Investment for ‘Belt & Road’ Initiative Chinese Trade Growth In Next Decade

To Celebrate Along Global Population World GNP Known 35 100th Anniversary of 70% living along the belt 55% present in the route 75% Energy Resources YEARS China by 2049 CHINA-MONGOLIA-RUSSIA 1 ECONOMIC CORRIDOR (CMREC)

NEW EURASIA LAND BRIDGE 2 ECONOMIC CORRIDOR (NELB)

CHINA-CENTRAL ASIA-WEST ASIA ECONOMIC ECONOMIC CORRIDOR (CCWAEC) BELT & ROAD INITIATIVE 3 CHINA-INDOCHINA PENINSULA CORRIDORS 4 ECONOMIC CORRIDOR (CICPEC) CHINA-PAKISTAN 5 ECONOMIC CORRIDOR (CPEC)

CHINA-BANGLADESH-INDIA-MYANMAR 6 ECONOMIC CORRIDOR (BCIMEC) LAND LOCKED SHORT JOURNEY ENROUTE MARKETS ONE BELT REGIONAL CONNECTIVITY LEAD TIME EFFICIENCY RAIL & ROAD

CHEAP TRANSPORT MORE CARGO IN ONE GO TIME FLEXIBLE ONE ROAD SHIPPING TEUs CARGO CHINA-PAKISTAN ECONOMIC CORRIDOR INVESTMENTS

NORTHERN SECTION US$ 62 BILLION CHINESE INVESTMENT IN KEY PROJECTS CENTRAL SECTION Energy 38

10.79 Rail

6.10 Road

SOUTHERN SECTION 0.79 Port

0.04 Fibre Optics US$ Billion CHINA-PAKISTAN ECONOMIC CORRIDOR

Investments & Improving Projects Efficient Transport Per Capita Income Linkages

CPEC Driven… New Economic Economic Energy Projects Zones Uplift Health Care Global Investments with Facilities for Domestic Growth & Prosperity Locals Public Private Partnerships Vocational Training Employing Local & Labour Force Skill Development CHINA-PAKISTAN ECONOMIC CORRIDOR CPEC Driven Growth

Installed GDP CPEC Tax Revenue Stock Exchange Index Length of Capacity of Year Growth Job CPEC Strategic Phases (PKR Million) (PSX) Roads (km) Electricity Rate Creation (MW) 30,474 2014 4.1% 2.25 263,755 23,530 - CPEC Announcement (24 Jul, 2014 4:00 pm) 36,156 2015 4.1% 2.58 265,404 23,759 400 CPEC MoU Signed (1 Jan, 2015 4:00 pm) 33,228 2016 4.6% 3.11 265,905 25,878 16344 CPEC Investments (30 Dec, 2016 4:00 pm) 52,876 2017 5.4% 3.36 267,002 26,188 34429 CPEC Developments (24 May, 2017 4:00 pm) 46,580 CPEC Driven Economic 2018 5.8% 3.84 268,935 33,454 5649 (9 April, 2018 4:00 pm) Growth

Economic corridor: 22 projects worth $29.5 billion being executed Chinese companies working at CPEC projects have provided over 100,000 jobs to local people CHINA-PAKISTAN ECONOMIC CORRIDOR CPEC Impact

Pak-China FTA Energy Projects Motorways Jobs Over 90% 4549 MW 2464 KM 100,000 Open Access to Added Added Generated Chinese Market

Economic Zones Travel Time Private Sector 7851 60% 100 Acre Approved Reduced Freight Trains CHINA-PAKISTAN ECONOMIC CORRIDOR Energy Projects

Energy Projects (Coal)

COMPLETED (3300 MW @ US$ 6289.4 million) 1. Port Qasim Coal Power Project of 1320 MW of $1.912 billion (April 2018) 2. Coal Power project of 1320 MW at cost of $1.912 billion (October 2017) 3. Engro Thar Block II Coal fired Power Plant of 660MW at cost of $ 995.4 million (Mar 2019) 4. Surface mine in block II of Thar Coal field, 3.8 million tons/year at cost of US$ 1.47 billion (Dec 2018)

IN-PROGRESS* (5580 MW) 1. SSRL Thar Coal Block-I of 1320 MW at cost of US$ 3.21 billion 2. CPHGC Thar Coal Power Project of 1320 MW at cost of US$1912.2 million 3. Gwadar Coal Project of 300MW (cost of project not announced yet) 4. Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine (cost of project not announced yet) 5. Rahimyar Khan imported fuel Power Plant 1320 MW (cost of project not announced yet) CHINA-PAKISTAN ECONOMIC CORRIDOR Energy Projects

Energy Projects (Wind)

Completed (249 MW @ US$ 646.65 million) 1. Hydro China Dawood Wind Farm(Gharo, ) of 49.5 MW at cost of US$ 112.65 million (Apr 2017) 2. UEP Wind Farm (Jhimpir, Thatta) of 99 MW at cost of US$ 250 million (Jun 2017) 3. Sachal Wind Farm (Jhimpir, Thatta) of 49.5 MW at cost of US$ 134 million (Apr 2017) 4. Three Gorges Wind Power Project of 100 MW at cost of US$150 million (Jul 2018)

In Progress (100 MW) 1. Cacho 50MW Wind Power Project of 50 MW 2. Western Energy (Pvt.) Ltd. of 50MW

Energy Projects (Solar)

Completed (1000 MW @ US$ 1.3 billion) 1. Quaid-e-Azam 1000MW Solar Park () Quaid-e-Azam of 1000 MW at cost of US$ 1.3 billion (Aug 2016) CHINA-PAKISTAN ECONOMIC CORRIDOR Energy Projects

Energy Projects (Hydro)

In Progress (2870 MW) 1. Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa of 870 MW at cost of US$1.7 billion (Dec 2022) 2. Karot Hydropower Station of 720 MW at cost of US$1.69 billion (Dec 2021) 3. Kohala Hydel Project, AJK of 1100 MW at cost of US$ 2.36 billion (2025) 4. Phandar Hydropower Station of 80 MW (cost of project not announced yet) 5. KIU Hydropower of 100 MW (cost of project not announced yet)

Energy Projects (Transmission Line)

In Progress (US$ 3.15 billion) 1. Matiari to ±660kV HVDC Transmission Line Project at cost of US$ 1.65 billion (Mar 2021) 2. Matiari (Port Qasim) — Transmission Line Project at cost of US$ 1.5 billion (2019) CHINA-PAKISTAN ECONOMIC CORRIDOR Rail Development

In-Progress

▪ Expansion and reconstruction of existing Line ML-1 (1872 kms of track) at cost of US$ 8.17 billion (Dec 2022)

Salient Features • increase in speed from 65km per hour to105km per hour to 120km/h to 160 km/h • increase in line capacity from 34 to 171 trains each way per day • increase in freight volumes from 6 to 35 million tons per year by 2025 • increase in passenger trains from 20 to 40 each way per day • increase in railway share of freight transport volume from the current less than 4% to 20%

▪ Havelian Dry port at cost of US$ 65 million CHINA-PAKISTAN ECONOMIC CORRIDOR Rail Development

Block Train (Public Private Partnership) ▪ Private Sector Salient Features • increase in speed from 65km per hour to105km per hour to 120km/h to 160 km/h • increase in line capacity from 34 to 171 trains each way per day • increase in freight volumes from 6 to 35 million tons per year by 2025 • increase in passenger trains from 20 to 40 each way per day • increase in railway share of freight transport volume from the current less than 4% to 20%

▪ Havelian Dry port at cost of US$ 65 million CHINA-PAKISTAN ECONOMIC CORRIDOR Road Development

Completed Surab-Hoshab (N-85) project Gwadar--Hoshab (M-8)

In-Progress (1582 km) KKH Phase-II (Thakot-Havelian) road of 118 km at cost of $1.315 billion (March 2020) - Motorway (Mutlan- section 392 km) at cost of $ 2.889 billion (Aug 2019) Hakla-DI Khan Motorway (285 km) (December 2019) Zhob- (331 km) -Basima Road N-30 (110 km) at cost of PKR 19.19 billion KKH Thakot-Raikot N35 remaining portion (136 Km) at cost of PKR 8.15 billion Upgradation of D.I.Khan (Yarik) - Zhob, N-50 Phase-I (210 km) at cost of US$ 195 million CHINA-PAKISTAN ECONOMIC CORRIDOR Road Development

Motorway Length (km) Route Year of Completion CPEC Development M-1 155 Peshawar- 2007 M-2 367 Islamabad-Lahore 1997 M-3 230 Lahore-Abdul Hakeem 2018  M-4 286 Pindi Bhatian- 2018  M-5 387 Multan-Sukkur 2019 (April)  M-6 296 Sukkur-Hyderabad 2019  M-7 270 Dadu-Hub TBA M-8 892 Rotodero-Gwadar 2017  M-9 136 Hyderabad-Karachi 2017  M-10 57 Karachi-Northern By-Pass 2007  M-11 89 -Lahore 2018  M-13 81 -Chakdarah 2018  M-14 280 Hakla- 2019  Out of 3526 km (13 motorways) around 2464 km (9 motorways) was completed on fast-track during CPEC Regime compared to 522 km (2 motorways) which were completed in 10 years CHINA-PAKISTAN ECONOMIC CORRIDOR Development

Completed Development of Free Zone Phase-I inaugurated in Jan 2018 (Total Cost US$32 million)

In-Progress • Gwadar East-Bay Expressway (19 km) at cost of US$ 168 million (Oct 2020) • New Gwadar International Airport at cost of US$230 million on an area of 18 sq. km • Construction of Breakwaters at a cost of US$ 123 million • Dredging of berthing areas & channels at cost of US$ 27 million • Necessary facilities of fresh water treatment, water supply and distribution at a cost of US$130 million • Pak China Friendship Hospital at cost of US$100 million • Pak-China Technical and Vocational Institute at Gwadar at a cost of US$ 10 million • Gwadar Smart Port City Master Plan at a cost of US$ 4 million • Bao Steel Park, petrochemicals, stainless steel and other industries in Gwadar • Development of Gwadar University (Social Sector Development) • Gwadar Livelihood Project CHINA-PAKISTAN ECONOMIC CORRIDOR Free Trade Agreements (FTA)

China would Pakistan would share open up It will be redressing the trade imbalance between the two 90% countries, which stood 65% of its market with of its market for at US$9.7 billion last Pakistani goods year Chinese exports CHINA-PAKISTAN ECONOMIC CORRIDOR CPEC Employment CHINA-PAKISTAN ECONOMIC CORRIDOR CPEC Employment ONE BELT – ONE ROAD (OBOR) Bringing Efficiency In Global Supply Chain

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