ISLAMABAD: China will invest $8.5 billion in major projects including Pakistan railways upgradation and Gwadar-Nawabshah LNG Terminal & Pipeline project, as part of the China–Pakistan Economic Corridor (CPEC).
China will provide loans equivalent to 85 percent of the cost of each project. The Central Development Working Party (CDWP), which is responsible for authorizing major projects in Pakistan, approved $10 billion worth for two projects last week.
The Pakistan Railways upgradation project consists of work on existing Mainline (ML-I) and the formation of a dry port near Havelian, Khyber Pakhtunkhwa as part of the $46 CPEC package.
Another approved project is Gwadar-Nawabshah LNG Terminal & Pipeline project that costs $2 billion including the $1.4 billion Chinese loan.
“The exact costs of both the projects will be firmed up after finalizing financing arrangements, after finalization of the financing arrangements, both the projects will be taken to the Executive Committee of National Economic Council (Ecnec) with firmed up cost for final approval,” said Federal Minister for Planning and Development, Ahsan Iqbal.
The project is scheduled to be completed in two phases in five years. The first phase will be completed by December 2017 and second phase will be completed by the year 2021.