Executive Committee of National Economic Council (ECNEC) capped cost of Gwadar Expressway at $168 million. The capped cost is 25% more than the estimated initial budged of $134.2 million which was set two years ago. This increment in budget is seen as a vital step in the loan approval from Chinese authorities as Prime Minister Muhammad Nawaz Sharif is set for his visit to China.
The Gwadar Expressway is an important part of the jigsaw puzzle of China Pakistan economic corridor.
Also Read: CPEC: 18 Projects Have Created 13,000 New Jobs In Pakistan
The committee also approved Financial Inclusion and Infrastructure Project at an estimated cost of $137 million. It is to be noted that the aforementioned project is still facing serious reservations from the Planning Commission. The Planning Commission has remained vocal about the inadequacies in the proposed execution of the project.
The Eastbay Expressway Project
Eastbay Expressway Project involves building a 19 km long road which will be connecting Gwadar Port with Makran Coastal Highway.
Three major Chinese companies China Communication Construction Company, China State Engineering Construction Company, and CATIC Civil are bidding for the project.
The CPEC finances involve interest free loans from China and preferential treatment being given to Chinese companies. This is helping the Chinese companies to bid without fear of competition from other global infrastructure companies.
It is to be noted that the financial cap isn’t the exact cost of the project but a total rough maximum estimate. The exact cost, we are told, will only be known once the bidding process reaches its final phase.
Also Read: Chinese Bank Provides $20 Million to Pakistan For The Rapid Rail Transit Project
Eastbay Expressway Project is part of $11 billion worth of infrastructure projects directly related to the CPEC.
Financial Inclusion Project
ECNEC committee’s approval of Financial Inclusion project at a cost of $137 million isn’t going down well with the Planning Commission. The reservations remain on an inaccurate and incomplete feasibility study and debt based financing. The project is being aimed to provide financial services to 50% of Pakistan’s population by 2020.
The Planning Commission has also been critical of the time given to them for evaluation of the project.
In a statement after the ECNEC meeting, Finance Ministry said:
“ECNEC directed that a committee headed by the secretary Planning and Development will rationalise the cost and scope of the financial inclusion project.”
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