PMLN lies on Interest Rate of CPEC loan

[xiaahmad]

According to PMLN interest rate is 1.3% which is big lie

Projects around Gawadar are at 1.6%
http://www.thenews.com.pk/print/14833-china-converts-230m-loan-for-gwadar-airport-into-grant

China converts $230m loan for Gwadar airport into grant


ISLAMABAD: In a major development, China has converted the $230 million loan for the construction of the Gwadar airport into grants, which is scheduled to be completed by December 2017, The News has learnt.

Beijing has also converted $140 million loan for the construction of Eastbay Expressway Project for Gwadar city as interest-free and will get back only the principal loan amount from Islamabad.

Out of the overall cost of $3.8 billion for infrastructure projects including Gwadar airport, construction of the Lahore-Karachi motorway section from Multan to Sukkur and other projects, the interest payment on Chinese loan was slashed down from over 3 percent to just 1.6 percent, official sources in the Economic Affairs Division confirmed while talking to The News after holding a review meeting on the China Pakistan Economic Corridor (CPEC) projects with Minister for Planning and Development Ahsan Iqbal in the chair here on Tuesday.

After conversion of loan into grants, the authorities concerned have stopped the bidding process for the New Gwadar International Airport as now only the Chinese companies will be awarded construction of this important airport. Beijing will select the company. It is expected that China will designate MOFCOM for undertaking the construction of the New Gwadar International Airport.

In case of possibility of cost escalation, the Chinese side will be requested to increase the size of resource envelop to complete this project within the stipulated time-frame.

When contacted, Gwadar Port Authority (GPA) Chairman Dostain Khan Jamaldini said that they had leased out 2,281 acres of land to the Chinese company responsible for operating this port.

We have completed all required legal documents while handing over of land will take place by next month, he concluded.

On contact, Minister for Planning and Development Ahsan Iqbal said that China had brought down its loan cost in a major way in order to accelerate the progress of CPEC. Some loans were converted into grants, some were converted into interest-free so the cost of the overall basket was slashed down to benefit Pakistan, he added.

Official documents available with The News reveal that under the CPEC initiative, Beijing and Islamabad had decided to spend $786 million on different important physical projects of Gwadar.

The Gwadar Coal Power Project will be constructed at an estimated cost of $360 million in order to produce electricity of 300MW. So, the overall investment on Gwadar will be more than $1 billion under the CPEC, including one coal power project of 300MW. The construction of infrastructure for Free Economic Zone and Economic Processing Zones port related industries will cost $35 million.

The construction of breakwaters will cost $130 million. The dredging of berthing areas and channels will cost $27 million under the CPEC over the next couple of years. The necessary facilities for a fresh water treatment plant at Gwadar will cost $114 million under the CPEC over the next few years.

One state-of-the-art hospital having 300 bed facilities will be constructed at Gwadar at estimated cost of $100 million. Both the sides also decided to establish a technical and vocational institute at Gwadar at an estimated cost of $10 million.

- See more at: http://www.thenews.com.pk/print/14833-china-converts-230m-loan-for-gwadar-airport-into-grant#sthash.VMoZhlJz.dpuf

Orange line Metro is around
at 2.4% interest rate + very good ROI promised

Power Projects are at 6%
Exim Bank of China will finance these private investments at 5-6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from those firms at pre-negotiated rates

https://en.wikipedia.org/wiki/China–Pakistan_Economic_Corridor

 

[Hunain Khalid]

جھوٹ لیگ سے اور توقع بھی کیا کی جا سکتی ہے ؟​

 

[aimless]

PML N is worst thing ever happened to Pakistan ... ZIA hand picked the biggest crooks of the country and made this party ..

 

[ruby303]

Some people are for sale in Pakistan like India bought some people to destroy kala bagh dem they helped India for money now they got paid for cpec

 

[amir_ali]

Ulu kae pathon ka ye nazar nahi ata kae gawadar ko kahan se kahan le kar jaya ja raha hae.

Bas bakwas karni ati hae.

Aik 4 crore dollar kae hadpatal kae lie salon pori dunia kae chakar kat kar chanda jama karte hain, croron rupees us ki marketing ke lie laga dete hain, un ko in mega projects ka kia adrak.

 

[chandaa]

Jhoot league lied to whole Nation that it is investment. It is in-fact a Loan which need to be returned by Pakistanis. Haraam Hour Sach bi nahin bol saktey.

 

[xiaahmad]

Phaley hum soctey thay there cant be bigger Liar than Rehman Malik
Then comes Pervaiz Rasheed we though same for him
BUT then comes Ahsan Iqbal :)

 

[Bourne]

CPEC, Loan or Investment

Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed by concessionary loans, with interest rates of 1.6%,[SUP][92][/SUP] after Pakistan successfully lobbied the Chinese government to reduce interest rates from an initial 3%.[SUP][93][/SUP] The loans are subsidized by the government of China, and are to be dispersed by the Exim Bank of China and the China Development Bank. For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried an interest rate between 5% and 8.5%,[SUP][94][/SUP] while interest rates on market loans approach 12%.[SUP][95][/SUP]
In addition to the aforementioned concessionary loans with a 1.6% interest rate, the government of China in August 2015 announced that concessionary loans for several projects in Gwadar totaling $757 million would be converted 0% interest loans.[SUP][96][/SUP] The projects which are now to financed by the 0% interest loans include: the construction of the $140 million Eastbay Expressway project, installation of breakwaters in Gwadar which will cost $130 million, a $360 million coal power plant in Gwadar, a $27 million project to dredge berths in Gwadar harbor, and a $100 million 300-bed hospital in Gwadar.[SUP][97][/SUP] Pakistan will only repay the principle on these loans. In September 2015, the government of China also announced that the $230 million Gwadar International Airport project would no longer be financed by loans, but would instead be constructed by grants which the government of Pakistan will not be required to repay.[SUP][93]
[/SUP]
Portions of the approximately $6.6 billion[SUP][74][/SUP] Karachi–Lahore Motorway are already under construction.[SUP][98][/SUP] The $2.5 billion phase which will connect the city of Multan to the city of Sukkur over a distance of 387 kilometers has also been approved,[SUP][99][/SUP] with 90% of costs to be financed by the Chinese government, while the remaining 10% is to be financed by the Public Sector Development Programme of the Pakistani government.[SUP][100]
[/SUP]
The M-4 Motorway between Faisalabad and Multan is not to be financed by the Chinese government as part of CPEC, but will instead be the first infrastructure project partially financed by the Asian Infrastructure Investment Bank, and will be co-financed along with the Asian Development Bank for a total of approximately $275 million.[SUP][101][/SUP] Portions of the project will also be funded by a $90.7 million grant announced in October 2015 by the government of the United Kingdom towards the construction of the Gojra-Shorkot section of the M4 Motorway project.[SUP][102][/SUP]

In September 2015, the government of the United Kingdom had also announced that it would grant Pakistan $121.6 million for the construction of the 59 kilometer long E-35 expressway project,[SUP][103][/SUP] which also is not to be financed by the Chinese government as part of CPEC - though the project itself is a crucial part of the Karakoram Highway reconstruction which is otherwise considered to be part of CPEC.[SUP][38][/SUP] The $920 million Phase 2 of the Karakoram Highway reconstruction project and the $2.5 billion Karachi–Lahore Motorway project between Multan and Sukkur will be financed by the China Development Bank.[SUP][104]
[/SUP]
$15.5 billion worth of energy projects are to be constructed by joint Chinese-Pakistani firms, rather than by the governments of either China or Pakistan. The Exim Bank of China will finance those investments at 5-6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from those firms at pre-negotiated rates.[SUP][43]
[/SUP]
The $44 million Cross Border Optic Fiber Project, a 1,300 km long fiber optic wire connecting Pakistan and China, will be constructed using concessionary loans at an interest rate of 2%, rather than the 1.6% rate applied to other projects.[SUP][3][/SUP] The 1,223MW Balloki Power Plant also does not fall under the concessionary loan agreement, but will still qualify for subsidized loans with an interest rate of 5%.[SUP][105][/SUP] In addition, the 27.1 km long $1.6 billion Orange Line of the Lahore Metro does not qualify for the Exim Bank's 1.6% interest rate, and will instead by financed at a 2.4% interest rate[SUP][106][/SUP] after China agreed to reduce interest rates from an originally planned rate of 3.4%.[SUP][107]

[/SUP]

 

[F415al]

Re: CPEC, Loan or Investment

well is this good for pakistan or the loan is good for economy please answer in detail where we will money to be paying it back thanks

 

[rtabasum2]

Re: CPEC, Loan or Investment

Way to go Pakistan......it is now China turn to be milked as WOT money is soon goona dry up