Third-party participation in CPEC: draft modalities finalised

ISLAMABAD: Ministry of Foreign Affairs (MoFA) has finalized draft modalities for third-party participation in China-Pakistan Economic Corridor (CPEC) to attract investment from countries or entities other than China, well-informed sources in Ministry of Planning, Development and Special Initiatives told Business Recorder.

This was disclosed at a CPEC progress meeting presided over by the Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, convened to finalized agenda for 12th Special Joint Coordination Committee (JCC) on CPEC meeting on July 11, 2023 in Beijing. Iqbal will lead Pakistan’s team. The purpose of this meeting is to celebrate the 10th Anniversary of CPEC.

In June 2022, MoFA had imposed a ban on announcements regarding inclusion of third party in CPEC projects on the pretext that both Pakistan and China have already decided to refrain from making public announcements in this regard.

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However, now the government is finalizing its plan to attract investment from third party or parties to CPEC projects. A couple of days ago Prime Minister Shehbaz Sharif offered India to take advantage of CPEC infrastructure project instead of creating hurdles in its way.

“Ministry of Foreign Affairs apprised that draft modalities for third-party participation in CPEC under Joint Working Group on international cooperation and coordination have been devised and shared with all stakeholders for input,” the sources added.

Minister for Planning, sources said, directed CPEC Secretariat to get approval before sharing input draft modalities with MoFA.

Board of Investment (BoI), sources said, briefed the meeting that about 800 acres of land in Bostan SEZ is encroached upon. It was decided that the Government of Balochistan will take immediate actions to get the land vacated so as to ensure development of Bostan SEZ on envisaged 1000 areas.

Minister for Planning expressed serious reservations on delay in floating of Request for Proposal (RFP) for feasibility study of Islamabad Model Special Economic Zone despite issuance of authorization of the project in early May 2023. He directed BoI to immediately advertise the RFP.

Ministry of National Food Security and Research stated that the feasibility study for the development of an FMD free zone in South Balochistan is currently underway and is expected to be completed within one month.

Government of Punjab has also taken the initiative to develop an FMD free zone in the Cholistan area.

According to sources, Power Division informed that they have approached their Chinese counterpart for meeting of the Joint Energy Working Group (JEWG) but there response is still awaited.

The meeting decided that Pakistani Mission in China will facilitate the holding of JEWG on priority basis.

The issue of No Objection Certificate (NOC) of Chinese Personnel for implementation of DTMB-A project also came under discussion at the meeting.

It was informed that the project is being developed by Chinese side on grant-in-aid basis at three different sites of Pakistan including Murree, Cherat and Kala Shah Kaku.

The company applied for NOC for the three selected sites access, which is pending since December 2022. However, due to non availability of NOC the technical teams could not visit the sites to carry out installation, commissioning and integration activities.

The representative of Interior Ministry informed that they have received the security clearance for second and third batch from security agencies on July 4, 2023 and they have already started the process for approval and issuance.

The sources said that Conveners of the respective JWGs will attend the 12th JCC meeting in person particularly the Conveners of the JWGs on Energy, Industrial Cooperation and Transport Infrastructure.

Pakistani Mission in Beijing will coordinate the meetings of the JWGs Conveners from Pakistani side with their respective counterparts on the sidelines of the JCC meeting for resolution of pending issues and way forward.

Pakistani Mission is also coordinating with National Development and Reforms Commission (NDRC) for participation of ex Co-Chairman of JCC meetings along with former Chinese ambassador to Pakistan in 2013 Sun Weidong in the 12th Special JCC meeting.

Copyright Business Recorder, 2023