Pakistan and China signed financing agreements worth $4.2 billion for the CPEC Eastern Alignment. Under the agreement, two main road projects, both a part of CPEC Eastern Alignment, will be constructed. This particular project was the last hurdle in CPEC construction process. The financing agreements were signed last week during Minister for Planning, Development and Reform Mr. Ahsan Iqbal’s visit to China. Financing for CPEC Easter Alignment will be provided at an interest rate of a little over 2%, slightly larger than other infrastructure projects under the CPEC umbrella.
The two road projects under the this new agreement cover Thakot-Havelian section of Karakoram Highway-II (KKH-II) and Multan-Sukkur section of the Lahore-Karachi motorway, costing $1.3 billion and $2.9 billion respectively. The contractors have already been moved to the construction site according to the officials from National Highway Authority (NHA). Both these roads are an integral part of the CPEC Eastern Alignment and necessary to connect Beijing with Gwadar.
A total of $46 billion in investments will flow to Pakistan under the CPEC umbrella, from which an estimated $11.5 billion is reserved for road and railways infrastructure. CPEC is one of the six arteries China has planned under the one-belt one-road project. During the Minister’s visit last week, Gwadar LNG pipeline and terminal project was also discussed. The project is currently facing delays owing to financing issues. Ahsan Iqbal proposed to make this project a part of the CPEC framework. According to officials, the proposal is being considered.
With CPEC Eastern Alignment set to develop, it would seem that all issues regarding the mega-project have largely been addressed. All provinces of Pakistan are onboard for its implementation, the security is fool-proof, and the timelines are set. Pakistan currently desires completion of major projects ahead of schedule, which should be the priority.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.