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R Kakar @rafiullahkakar
, 6 tweets, 2 min read Read on Twitter
@FinancialTimes story has reignited the debate on CPEC in Pak. Impassioned & heated debate on the subject has precluded nuanced discussion. CPEC is neither another East India Co nor a game changer. It is an opportunity that can go in our favour if we do our homework & vice versa
Few areas of legitimate concern reg CPEC are:
Sovereign guarantee crisis related to FDI in energy sector
High project costs proposed by Chinese feasibilities nd conflict of interest issues
Uncertainty abt mpact on local industries & regional disparities
Lack of transparency
All infrastructure CPEC projects are financed through soft loans. Problem is tht feasibility for these projects is also often carried out by Chinese side-a case of conflict of interest. Not surprisingly, costs proposed in feasibility are outrageously high. Couple of examples are:
Differences over cost & scope have impeded progress on upgradation of ML-1. Initial costs suggested by China were Rs 1 trillion. Pak objected to high costs nd set up consortium of Chinese nd Pak firms to do joint feasibility for phase 1 of the project.
Still costs proposed by Chinese Co for Phase 1 were Rs 77 million more than those estimated by Pak firm. Same is case with Quetta Mass Transit. Chinese Company proposed a cost of Rs 100 billion--more than the total annual development budget of Balochistan (Rs 86 billion FY 2018)
That Chinese firms, which r providing loans 4 infrastructure projects, are also doing feasibility nd thus determining costs is a clear case of conflict of interest. Feasibility nd project design shall be prepared by ind party. Chinese Cos have an interest in proposing high costs
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