CPEC projects: 'stalled progress' irks special body

03 Oct, 2020

ISLAMABAD: The Special Committee on the project of China-Pak Economic Corridor (CPEC) expressed serious concerns and resentment over stalled progress on development projects under the CPEC. The Committee met with Senator Sherry Rehman in the chair at the Parliament House on Friday.

The Committee discussed on-going power projects of Gwadar city and establishment of Special Economic Zones (SEZs) under the CPEC. The Committee members expressed serious concerns and also strongly protested when the Ministry of Planning, Development and Special Initiatives, and the Ministry of Energy, could not give satisfactory response to the members.

They said the progress on the development projects was only on tweets and WhatsApp but nothing on the ground. The Committee directed the secretary of the ministry to prioritise umbrella projects specified for Balochistan.

Members of the committee were of the view that no tangible progress had been achieved during the last few years, and despite recommendations, provision of gas and electricity supply in Bostan area of Balochistan and its development as a SEZ seems a farce.

Member (Energy) Planning Commission Waqas bin Najib told the Committee that one and a half years had passed, a issue of tariff between inverter and the NEPRA had been hanging about 300MW Coal Power Plant at Gwadar city.

He said that this issue would be solved in an Appellate Tribunal of the NEPRA but it was not established so far. He said the project could suffer if tariff was not satisfied for investor.

He said Chinese company was installing coal power plant. On the development of SEZ Bostan in Balochistan, the additional secretary of the Ministry of Planning told the Committee that the Bostan economic zone was to be developed on 200 acres and PC-1 of Rs110 million was to be submitted but it was not done so far.

He said that Rs712 million had been allocated for utilities including electricity. When the Committee members raised questions about the development on Bostan, the secretary planning said this agenda item of the Committee should be deferred, and "we will provide its detail in the next meeting".

Committee Chairperson Senator Sherry Rehman said, "Whey we defer this agenda, you should answers the questions of the members. It is not the way to respond to the Parliament. If the ministries are working in such a way then [forget about] work been done on CPEC. The seriousness of the ministries showed in the meeting that there is no progress on the CPEC projects."

Minister for Narcotics Control Azam Khan Swati said, "The government is facing embarrassment, the ministries should give proper answers to the members."

Board of Investment (BOI) Secretary Fareena Mazhar told the Committee that it was decided that one Special Economic Zone would be established in each province. She said that Bostan economic zone was to be established in Balochistan but Bostan was given status of industrial zone on March 4.

She informed that BOI solicited the rational for the plot pricing in Rashakai SEZ from the relevant authority of Khyber-Pakhtunkhwa, however, the reply was awaited. The Committee was also informed about the status of progress report on provision of gas and electricity supply to the SEZs.

The Committee rejected the stance of the ministry and decided to postpone the meeting in protest as the information provided was insufficient. Earlier, Senator Usman Khan Kakar said that there was nothing on the ground and it was unfortunate that 132KV grid station at Bostan could not be constructed due to non-availability of required funds.

He demanded early completion of the project with an aim to provide relief to the people. According to documents placed in the meeting, "no funds allocated for Bostan SEZ in federal PSDP-2020-21."

Senator Dr Asad Ashraf said, "There is only progress of CPEC projects at the Twitter and WhatsApp. All the relevant departments are answerable before the Parliament."

The members of the Committee said that a professional, experienced and technical person should be appointed as chairperson of the CPEC Authority for the development projects under the CPEC. Senator Mir Kabir Ahmed Muhmmad Shahi said that there was no progress on mega projects of Gwadar under the CPEC including international airport, drinking water, and power plants.

Committee Chairperson and Parliamentary Leader of the PPP in the Senate, Senator Sherry Rehman said, "Briefing given by the ministry and its various allied departments is insufficient and lacks details on many aspects.

The departments are shifting responsibility on one another and there seems to be no institutional collaboration," she said. Speaking on the Gwadar power plant issue, she said "Two projects from Balochistan have been discussed; SEZ and provision of energy to Gwadar. Federal government is misrepresenting the facts on projects on Balochistan, including the SEZs, as well as the power project for Gwadar, which has been caught in the NEPRA tariff forest since 2017 and has still not cranked up".

"SEZ at Bostan has received no PSDP funding and hence no progress could be achieved. The Planning Division's unprofessional approach towards the CPEC and its various umbrella projects with special reference to development of the Special Economic Zones in Balochistan and other parts of the country is disappointing. We have decided that the Planning Minister will address the agenda on Balochistan himself," Senator Rehman added.

"Questions were raised on the lapsed CPEC Authority and how it will proceed further. What coordination has been done since there is no clarity," said Senator Rehman.

Senator Sherry Rehman concluded by saying that, "We are still standing where we were one year ago. Parliament needs to be respected and taken seriously."

The Committee meeting was attended by senators Muhammad Ali Khan Saif, Dr Sikandar Mandhro, Dr Ghous Muhammad Khan Niazi, Dr Asad Ashraf, Nuzhat Sadiq, Muhammad Usman Khan Kakar, Muhammad Akram, Muhammad Azam Khan Swati, Mir Kabeer Ahmad Muhammad Shahi, Sitara Ayaz, and Muhammad Javed Abbasi besides secretary, Ministry of Planning and senior officers of the relevant departments.

Copyright Business Recorder, 2020

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