Sindh wants KCR under CPEC umbrella

Author: PPI

Sindh Chief Minister Syed Murad Ali Shah has said that the Sindh government was keen to start a number of projects under CPEC but the top priority is Karachi Circular Railway (KCR), Dhabeji Special Economic Zone and Keti Bander port.

He was talking to a 22-member federal parliamentary delegation led by MNA Sher Ali Arbab called on on him here on Monday at CM House to evolve consensus for the CPEC-related projects to be launched in Sindh.

Chairman CPEC Parliamentary Party Ali Arbab said that value of socioeconomic development projects under CPEC come to $ 1 billion. He added they want an overall development of projects under CPEC in Sindh.

It was pointed out that MoU was signed between Ministry of Planning Development & Special Initiatives and China Development and Cooperation Agency (CIDCA) on 3rdNovember, 2018. In response to the MoU, all provinces shared their projects in six identified areas.

Murad Ali Shah said that his government shared 29 projects in areas of education, TVET, health, poverty alleviation, clean drinking water, agriculture livestock & fisheries.

Chairman CPEC parliamentary body said that from the shared projects of all provinces, 27 projects were identified as priority projects and of these, 17 as fast track projects. From 17 fast track projects, seven projects belongs to Sindh, two in agriculture, two in education, one in health, and two in TVET.

The two fast track agriculture projects include China-Pakistan Joint Agriculture Technology Laboratory and China-Pakistan Joint Agriculture Demonstration Stations.

The chief minister said that for the Sindh’s projects in agriculture, Chinese experts visited Sindh on December 15th, 2019 to discuss agriculture projects and to do field visits. The Sindh government was asked to give concurrence for agriculture projects, which was given on 10thJanuary, 2020, he said and added progress on remaining five fast track projects of Sindh was waiting for Chinese visits.

Murad Shah said that project preparation would commence after their visit. They include Smart Classrooms for education, overseas Student Scholarship Programme, provision of Medical Equipment and Supply for Hospital(s), Vocational & technical Schools up-gradation and Vocational & Technical Teachers’ capacity building.

The chief minister said that overall there were three projects included in CPEC for Sindh Province. They were Karachi Circular Railway (KCR), Dhabeji Special Economic Zone and Keti Bander port.

Talking about KCR, Murad Ali Shah said that on the request of Sindh government, KCR was included in CPEC on 3rdDecember, 2016; alongside Sindh government’s requested for provision of sovereign guarantee to KCR, like it was accorded to Orange Line Lahore project.

He mentioned handing over Karachi Urban Transport Company (KUTC) to Sindh government, and transferring of land along with KCR route alignment to KUTC. He added that it was included in CPEC and Prime Minister had accepted the requests except the transfer of land.

Shah said that the project was approved and included in 6thJCC with instruction to get it approved at Pakistan’s level. Project was approved by ECNEC for $1.97 billion on 6thOctober, 2017. The KCR has been part of all JCCs and TWG meetings and in all meetings, it was stated a feasible and viable project but there were major obstacles need to be removed, he said and added these include sharing of Framework Agreement by PD&SI with NDRC; sovereign Guarantee by Finance Division, Concessional Finance request to Chinese Government by Federal Government and Right of Way for KCR at common corridor between ML-1 and KCR.

The chief minister said that he has been writing to Ministry of PD&SI, EAD, Finance, Communication, Pakistan Railway and the Prime Minister since 2017 but the issues were still unaddressed.

The chief minister said that in 9thJCC meeting conducted on 5thNovember, 2019, KCR was again discussed and the Sindh government was asked to submit the request of financing again; which he did through a letter written on 13thNovember, 2019.

Dhabji Economic Zone: Talking about Dhabeji Special Economic Zone, the chief minister said thathis government has earmarked 1530 acres of land to be developed as Dhabeji Special Economic Zone (DSEZ) in Thatta, a Priority Project under China-Pakistan Economic Corridor (CPEC).

He said that the location at Dhabeji has advantages such as easy access of Port Qasim enabling raw material import and finished goods export without incurring major inland transportation costs and saving time. Easy access to Karachi Airport (35 Km) via National Highway enabling safe travel of foreign workers and management personnel and direct access to the National Highway enabling the transportation of goods to upcountry and Central Asian nations utilizing the National Trade Corridor.

The chief minister said that 1530 acres of land for the project has been reserved/earmarked by BOR. The project has been approved from PPP Policy Board and a consortium of consultants have been hired for Transaction Advisory Services.

Murad Shah disclosed that the federal government in ECC meeting has committed to provide services, electricity & gas, to prioritized special economic zones through PSDP at the door step of SEZs. K-Electric in consultation with SEZMC, Sindh Investment Department prepared PC 1 for provision of 250 MW electricity at doorstep of DSEZ with an estimated cost of Rs.4 million and PC-1 has been approved by the Planning Commission of Pakistan on 9th Dec, 2019. The KWSB to submit PC-1 for the provision of 10 MGD water supply, he said and added the Petroleum Division of Pakistan has directed SSGC to submit PC 1 for provision of infrastructure of 13.5 MMCFD gas at doorstep of DSEZ

Keti Bandar: The chief minister talking about Keti Bandar said it was located about 107 km from Thatta city and 150 km from Karachi via Gharo which was very promising in terms of future prospects.

He said that e Keti Bandar Project was an important part of his strategy towards developing the energy sector. “Sindh Energy Department is pursuing development of Keti Bundar project vigorously. Initially, a Technical & Financial Feasibility Study of the project was to be carried out and a consortium was engaged.

Thar Coal: The chief minister said that Thar Block-I has been given to Sino Sindh Resource Limited (SSRL). It has achieved Financial Close for 7.8 mtpa on December 31st2019. Overburden to be removed would be around 10 million BCM. The project is expected to be started by June 2021 and it would cater to 1320 MW power generation. He added that SSRL has planned mine expansion upto 15.6 mtpa in phase-II, 23.4 mtpa in phase-III and 27.2 mtpa in phase-IV to cater 2×660 MW, 2×660 MW and 1×330 MW power generation units respectively.

Thar Coal Block-I Power Generation Company: he said that Loan Agreement signed with CDB in December 2019. Civil work is in progress such as foundation for boilers and turbine etc. Financial Close is expected by end 2020 and project would be started by September 2021. It TCEB would follow power generation SSRL’s mine expansion.

The committee also discussed the project in detail and would submit their report to the federal government so that these projects could be started on fast track.

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