CPEC

CPEC ML-I project

CPEC ML-I project:

The Planning Commission of Pakistan has emphasized that before granting approval to ML-I project under the #China-Pakistan Economic Corridor (#CPEC), Pakistan Railways should evaluate the impact of the huge Chinese loan for it on country’s foreign debt.

One of the most critical decisions for the government of Pakistan is whether the loan will be a central loan (#GoP) or sovereign guarantee loan (M/o #Railways).

PC-I states that 10 % of the total cost of the project shall be borne by the government of Pakistan and 90 percent shall be financed from relevant #Chinese financial institutions under the CPEC framework.

The sponsoring agency, i.e. the #Pakistan Railways, should clarify as to whether any firm commitment has been conveyed by the #government of China through #EAD for financing the instant project under CPEC based on the above sharing ratio.

Sections of ML-I in Phase-I are proposed to be taken up under Package 2; Package-3 and sections that were under Phase-II are now proposed under Package-1, the Commission identified and noted that this amendment in priority of the sections is not reflected in the framework agreement.

Source: Business Recorder

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