China halts funding of three CPEC projects
islamabad — China has temporarily stopped funding of three projects related to the road network under the China-Pakistan Economic Corridor (CPEC) till a decision regarding “new guidelines” is issued from Beijing, according to a senior government official.
The decision could affect over Rs1 trillion ($9 billion) road projects of the National Highway Authority (NHA). The projects to be affected include the 210 kilometres Dera Ismail Khan-Zhob Road at an estimated cost of Rs81 billion, Dawn online reported.
Of this, Rs66 billion was supposed to be spent on construction of road and Rs15 billion on land acquisition.
The second project was 110-kilometres Khuzdar-Basima Road and Rs19.76 billion was estimated to be spent on it. The Rs8.5 billion 136 kilometre remaining portion of Karakarom Highway from Raikot to Thakot was also impacted.
All three projects were originally part of the government’s own development programme but in December 2016, the spokesman of the NHA announced that they are to be included under the CPEC umbrella to become eligible for concessionary finance from China.
The Pakistan government official told Dawn that funds for the three road projects were approved in the 6th Joint Coordination Committee meeting for the CPEC held last year, pending necessary procedural formalities.
It was expected that the funding of the three projects would be finalised during the Joint Working Group (meeting held on November 20), but Pakistan was informed in the meeting that “new guidelines” will be issued from Beijing under which a new modus operandi for release of the funds will be described.
The decision of the Chinese government was conveyed to Pakistan in the JWG meeting and the existing procedure for release of funds had been abolished.
The official said the Pakistani side was left “stunned” when told of the development.
The offical, however, claimed that Chinese side was disturbed with increasing news reports being published in Pakistan regarding corruption in the CPEC projects and that was the reason behind Beijing temporarily halting release of funds for the corridor.