The Federal Board of Revenue (FBR) and the Chinese authorities would soon convene a meeting to resolve the tax-related issues of projects under the China Pakistan Economic Corridor (CPEC). Sources told Business Recorder here on Monday that a decision has been taken in the last meeting of the China Pakistan Economic Corridor (CPEC) Projects Progress Review held at the Planning Division.
In this regard, necessary instructions have been issued to the FBR. After detailed discussions, it has been noted that the security arrangements for Chinese nationals working on various projects were viewed with concern especially in the backdrop of a recent attack on a Chinese national working on a project in Karachi.
The representative of Ministry of Interior was asked to make a request to the Interior Minister through Secretary Interior to personally look into the matter and resolve the Special Security Division (SSD) Terms of Reference (ToRs) issue at the earliest. The action is to be taken by M/o Interior/ MoD/ SSD (Special Security Division) The Chairman of the committee further emphasised that immediate deployment of SSD on the CPEC projects is the utmost priority. He was of the view that the security of Chinese working in Sindh and other areas, especially on power plants must be ensured. He desired that quarterly meetings to review and update the Standard Operating Procedure (SOPs) for security of Chinese must be held regularly. The action is to be taken by M/o Interior/MoD/SSD.
It has been decided that the work on both the highway projects should commence with full thrust. The timelines for execution activities regarding the two transport infrastructure projects - Karakoram Highway (KKH phase II (Thakot-Havelian) & Peshawar-Karachi Motorway (Multan-Sukkur) - must be intimated along with the payment schedule vis-a-vis the milestones as per contractual obligations to ensure smooth execution of projects. The action is to be taken by M/o Communications/ National Highways Authority (NHA).
It has been decided that the work on the Master Plan of Gwadar be expedited. The Chinese side has indicated to provide the list of consultants by mid of the month. The same is to be ensured. The action is to be taken by Government of Balochistan (GoB)/GDA/Member Infrastructure Regional Connectivity (I&RC).
Sources said it has been decided that all Ministries/Governments/departments are to submit the anticipated future disbursements for the CPEC projects to be included in Public Sector Development Programme (PSDP) for next financial year in order to ensure smooth flow of funds as per the progress of works. The action is to be taken by M/o Communications/NHA.
It has been decided that the Prime Minister Delivery Unit (PMDU) is requested to expedite the resolution of issues with the Sindh government regarding land, water and security of the Port Qasim Power project. It is decided that the M/o Water and Power will give a presentation on future projections of energy and present integrated plan covering power generation, evacuation, transmission and distribution for next three years to Minister for Planning Development & Reform (PD&R) within a week. The action is be taken by M/o W&P Member Energy.
It has been decided that Thar would be developed as a model coal energy city but through sustainable green and all inclusive development. The first step is electrical distribution and business development master plan through engagement of Institute of Business Administration (IBA) Sukkur and other institutes. The action is to be taken by M/o W&P.
It is decided that the power plant at Gwadar shall be constructed as strategic project to wean the area of imported Iranian power supply. M/o W&P to engage Chinese company earmarked for 300 Mega Watt (MW) coal power plant at Gwadar to undertake LNG/ oil fired plant instead, with modular components. A summary in this regard has also been submitted to Prime Minister's office. The requirement of whole of Makran coast including Jiwani, Gwadar, Pasni, Ormara, Sonmiani leading upto Hub is to be catered to for suitable actions. The project of modular power plant of 3/4 x 100/75 MW capacity be started on fast track at Gwadar. The action is to be taken by M/o W&P GoB/ GDA M/o P&S/GPA
For evacuation of power from Gwadar, a coastal grid from Gwadar to Gadani through Ormara needs to be developed as it is a priority for clustered industry and business development along the coast. The Iranian power supply will be utilised in interior Balochistan while Gwadar/coastal grid will be made independent, sources said.
It has also been decided that the whole of Gwadar district is required to be declared exempt from load shedding with immediate effect and Iranian supply be utilized till installation of Gwadar power plant. The requirements and updates on evacuation and distribution arrangements for all CPEC energy projects are required to be presented in next progress review meeting.
A meeting between Chief Executive Officer/Managing Directors (CEO/MDs) of Chinese Companies, local business and Pakistan Engineering Council has been arranged within a fortnight to discuss/emphasise upon importance of employing Pakistani skilled manpower in the CPEC construction phase. The meeting will also discuss the possibility of procuring local material and components for Chinese projects in Pakistan. The is action to be taken by Executive Director, the CPEC Center of Excellence, PEC, Embassy of China.
A meeting needs to be held with M/o W&P and M/o Communications to recommend changes in Public Procurement Regulatory Authority (PPRA) rules within a week. It was also decided that a summary has to be sent to Prime Minister's office to undertake the Gwadar power project on Liquefied Natural Gas (LNG)/gas and development in three phases of 100 MW each. W&P is required to take an expeditious action on this issue. Moreover, M/o W&P would hold a Joint Working Group (JWG) meeting through a video link within one week and extend invitation to the National Energy Agency (NEA) for their visit to Pakistan at as early as possible.
The CPEC Centre of Excellence is to hold a meeting to formulate recommendations for amendment in the PPRA rules to make these more practicable and business friendly keeping in view the past experience, sources said.
The Chairman, Parliamentary Committee on CPEC will be approached for expediting/resolving the land procurement regarding the Suki Kinari project. The actively promoted energy projects need to be reviewed and monitored for progress and the Gadani power park project is to be given special attention. The hydrographic and ocean studies required for the project needs to be carried out and a feasibility is prepared expeditiously. A detailed update may be provided in the next meeting. The 300MW coal-based power Salt Range project had been dropped from the list. The issues need to be resolved by Chief Minister Punjab/Ministry for Mines & Minerals.
A framework agreement on water supply to Gwadar phase-II is to be expedited. This may be made draft agenda for a working group and deliverables of Joint Cooperation Committee (JCC-6) meeting. Deputy Chief of Mission (DCM) spoke about the issue of two private companies that have to be given a No-Objection Certificate (NOC) by Sindh Government for the use of land allocated to United Energy Pakistan (UEP) Wing project. The issue may be resolved by Sindh Government as soon as possible.
DCM conveyed the views of National Development Reform Commission (NDRC) on JCC meeting. He stated that during the Minister's visit to China in April, the minister had a meeting with Chairman NDRC and Vice Chairman NDRC. It was like a mini JCC where critical actions were undertaken: signing of two major infrastructure projects' financial agreements and consensus on the technical aspects of Gwadar Eastbay Expressway and New Gwadar International Airport. JCC-6 meeting will be held after the JWGs meet and formulate a good agenda for the JCC. All ministries are required to act with Chinese counterparts to have the joint working group's meetings.
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