Execution of Memoranda of Understanding (MOUs) signed between Pakistan and China is limited to 5 percent for the public sector, reflecting inefficiency and lack of one-window facility provided to Chinese investors.
On the directives of Prime Minister Yousuf Raza Gilani, the Board of Investment (BoI) called all those from the public and private sectors who were party to the 18 MoUs signed in back-to-back meetings on December 18 during the visit of Chinese Prime Minister.
Only National Transmission and Dispatch Company (NTDC) has shown some work on two projects out of a total of 12 projects signed with Chinese companies. The cases of these two projects were pending before the ministry of water and power for approval from the Executive Committee of National Economic Council (ECNEC) for last one month.
The General Manager of TBEA Shenyan Transformer Group Co Ltd, Luo Jun has expressed serious concern over the delay in implementing the agreement. He stated that his company had carried out commercial and technical valuation of two projects and added that "we respect the rules and regulations set by the Private Power & Infrastructure Board (PPIB) for foreign investors but internal procedures are too lengthy," he said.
Rasul Khan Mahsud, President NTDC said a framework agreement in relation to a development finance co-operation agreement worth $3550 million with China Development Bank. Co-operation will be within the areas of power and electricity in relation to establishment of National Grid and the MoU would mature during the next 5 years, he added. The power plants of 37.5MW and 35MW will be set up at Guddu and Kutcha areas. He added that two more projects of 9MW and 35MW are pipelined under the support of ministry of water and power. The feasibility report has been submitted to the Planning Commission. The committee suggested sharing the document with them to expedite the projects with the Deputy Chairman of Planning Commission.
The representative of Alternative Energy Development Board (AEDB) told the committee that MoU worth $6500 million was signed with China International Water & Electric Corporation for the development of wind power and solar energy projects but progress on these projects was slow.
The committee was informed that 2300MW wind & solar energy projects in Pakistan will start working in 10 years. He further said that Hydro China invested in 3 mega power plants including 50MW project in Gilgit Baltistan. Another development regarding the power plants is that CIEW has initiated work for 1000MW hydel power generation and 2000MW through solar energy in Punjab. In the initial phase the government of Punjab is preparing a feasibility project data to start these mega power plants in the region and a contract of 1000 acre land is being finalised.
The committee assured the AEDB that it would discuss the issue on priority basis with Chief Minister Punjab to expedite work on potential projects. The representative of AEDB also revealed that CIWE is providing assistance of 6 Billion Dollars in setting up IPPs on the same model as Jhampir.
The third project in public sector has reached the stage of budget approval. A MoU between Pakistan Space and Upper Atmosphere Research Commission and China Great Wall Industry Corporation was signed to provide co-operation on Pakistan Remote Sensing Satellite System (PRSS) Programme between the two parties. As a result, Pakistan would be able to construct its independent satellite earth analysis with the support of Chinese counterpart. In this regard a pool of 100 Chinese scientists is working for the upgradation of the satellite system of Pakistan.
The meeting was chaired by Chairman Board of Investment Saleem H. Mandviwala to produce results out of MoUs signed between Pakistan, China during the visit of Chinese Premier Wen Jiabao. The recommendations of the committee will be sent to the Prime Minister for consideration.
Unlike public sector, private companies of Pakistan showed 35 percent progress in implementing the MOUs. All of them agreed that language is the main hurdle in implementing the agreement. Private sector participants included representative of Federation of Pakistan Chambers of Commerce and Industry, Karachi (Private), Ilyas Muhammad, Stone Mart, Rawalpindi and Shahid Ahmed, Pak Agro Oil Mills Pvt Ltd Karachi. The representatives of Chinese embassy were also present. They took note of hurdles and difficulties faced by the Pakistani companies in implementing the MoUs.
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