3rd party participation in CPEC: Pakistan, China set to finalise modalities

ISLAMABAD: Pakistan and China are all set to finalise the modalities for third party participation in China-Pakistan Economic Corridor (CPEC), aimed at inviting other potential investors in its second phase, well-informed sources told Business Recorder.

The CPEC regional scope would be expanded by improving connectivity of neighbouring countries and regions with Pakistan’s sea ports as both countries support the extension of CPEC to wider area through land route transportation.

CPEC under renewed Pakistan-China focus

According to the draft shared by the Chinese side prepared for CPEC Joint Working Group (JWG) on International Cooperation and Coordination Modalities for third-party participation in CPEC, there will be following general principles and objectives; (i) CPEC is an open platform and inclusive initiative based on extensive consultation, joint contribution, and shared benefits; (ii) both Pakistan and China welcome third-party participation in the CPEC in mutually identified areas, on a project-by-project basis; (iii) third-party involvement is aimed at attracting high quality capital, technology, and expertise to enrich CPEC’s development; (iv) third-party involvement would not affect the leading role of the governments of Pakistan and China in steering CPEC; (v) third-party involvement would not lead to the tri-lateralization of CPEC mechanisms such as the JCC and JWGS; (vi) third-party participation would only be made public after it is approved by Pakistani and Chinese authorities. Unilateral release of information about third-party participation will be avoided at all levels; (vii) all potential third parties will be expected to maintain confidentiality of information until their respective projects are agreed/ accepted.

Joint Working Group on International Cooperation and Coordination (JWG-ICC) will act as the lead platform for formulation of modalities for third-party participation in CPEC projects.

The JWG-ICC would hold bilateral consultations between Pakistan and China to reach consensus on modalities for third-party participation in CPEC.

The JWG-ICC would seek concurrence on the involvement modalities from the relevant authorities on both sides.

After approval by relevant authorities, the JWG-ICC would forward cooperation proposals to all the concerned CPEC JWGs for technical preparation and plan on implementation in their respective areas before final approval by the JCC.

To build awareness of CPEC and the modalities for third-party investment, briefings would be organised in designated Pakistani and Chinese diplomatic missions abroad.

The sources said the Ministry of Foreign Affairs has convened a meeting this week to share Chinese draft with other stakeholders and give final touches to the draft of general principles and objective for third party participation in CPEC projects.

Copyright Business Recorder, 2024