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CPEC – China Pakistan Economic Corridor in OBOR-One Belt One Road
CPEC is one of most important touches in OBOR-One Belt One Road with more significance. CPEC is an umbrella framework of a cluster of projects building Highways, railway lines, pipelines, fibre optical cable lines to connect China’s Xingjiang (Kashgar) with Gwadar Port in Balochistan Pakistan, CPEC will be an economic and industrial zones, free trade areas, energy and power projects, airports, Information Technology etc. along the Corridor.
CPEC – China Pakistan Economic Corridor financing infrastructure projects in Pakistan to link Gawadar Port to China and rest of world for international trade through OBOR. China singed with Pakistan Agreement of CPEC Cooperation Projects in 2014 with cost of $46 billion to finance Chinese companies for projects under CPEC.
Then for expanding CPEC Chinese President and founder of CPEC Xi Jinping visit to Pakistan in 2015 include different development and infrastructure projects that make up the corridor: Highways, Railway lines, Information technology, Oil & gas pipeline, optical fibre line and Industries making China’s financial commitment to CPEC at total cost of $57 billion. But now Chinese Government added $500 million more to CPEC for successful completion of these projects.
CPEC is combinations of different kind of projects including Gwadar Port project, it is main project operated by China Overseas Port Holding Company; Karachi Nuclear Plant Project, funded directly under CPEC, Belt by China Zhongyuan Engeering Co, with 79 percent financing under CPEC.
Lahore Matro project is funded by China Exim Bank contracted commercially to be constructed by China Rail and Norinco. Karot Dam project, invested by China’s Three Gorges Corporation, with loans from China’s Silk Road Fund, China Exim Bank, China State Development Bank, and constructed by Sinohydro Bureau 7 Co; Qasim Power Project, a joint adventure by Qadar’s Al-Mirqab Capital and China’s Power Construction Corporation, with 75% financing by China Exim Bank; ML1 railway by China Rail; Karakoram Highway reconstruction and upgrade project, by Chinese state enterprise China Road and Bridge Construction Corp, with 90% financing from China Exim Bank.
These were some of main big projects; there are so many small and medium size projects in different regions of the country i.e. industries, bridges, Highways, Tunnels, IT projects, Agriculture projects, Livestock, and Energy projects under CPEC.
CPEC is considered to be a model of how the One Belt and One Road Initiative would operate. There is a lot of debate by many as to what exactly the One Belt and One Road initiative would be, what it entails, and what institutional form it taken. Is seemed that same model China uses to set up intergovernmental partnerships for One Belt and One Road (OBOR) projects to link world.
It is a unique institutional form and is a giant network of development, economics and growth projects that can integrate different national sources for production and services.
It is also a set of intergovernmental partnerships between China and the partner country to support, facilitate, coordinate, and, most importantly, finance the projects.
CPEC is very important and as a key “node” in the Belt and Road network due to its strategically location between the One Belt and One Road and also important because it is between the East and West ends of the network.
It can potentially provide connections to the central part of the Belt and Road and form a fully connected network along the Eurasian land mass connecting East Europe, Central Asia, West Asia, South Asia and Southeast Asia, an area that past waves of globalization from the 16th century have not been able to connect for transnational organization of economic activities.
However, CPEC’s further connection to the Belt in the north via Iran, through railway connection, can possibly affect the value of the Road in the south.
Moreover, CPEC, along with the “Kunming-Singapore Indochina Peninsular railway”, and the “China-Myanmar oil and gas line”, is one of the three key economic corridors that connect China to South and Southeast Asia. But the “Bangladesh China India Myanmar (BCIM)” economic corridor has not progressed well so far.
The OBOR network, unlike regional institutions for economic integration in the past, is not a multilateral framework for horizontal economic integration across countries, but primarily a vertical integration between China and OBOR partner countries.
It is a separate bilateral partnerships network of economic projects and trade. Projects under different bilateral partnerships are often homogeneous, and these projects are not connected across boundaries for the purpose of economic integration.
CPEC therefore is a node in the OBOR network, and may not necessarily turn Pakistan – or for that matter, any node for any partner country in this network – into a member of an integrated economic and trader’s community, much less likely into a political “bloc.” The network is about connectivity and nodes connection. CPEC connects Pakistan with China bilaterally, and may possibly connect different parts of the Belt and Road network in some form.
OBOR-One Belt One Road Map:
Power Project in Russia Under OBOR:
As Russia is one of the most important member of One Belt One Road project. China has been started working on different infrastructure projects in Russia for economic corridor.
According to China’s officials: “A 483-MW gas-steam combined heat and power (CHP) plant built by a China-Russia joint venture has been officially brought online, China’s Huadian Corporation announced here Tuesday.
The CHP is the tangible result of the Huadian-Teninskaya joint project, which was launched by China Huadian Hong Kong Co., Ltd. and Russia’s second regional power company TGC-2 in 2011, with a total investment of 571 million U.S. dollars.
As China’s largest electricity project in Russia, the project was designed to generate 3.02 billion KWH of electric energy and 814,000 Giga of heating supply annually.
“The completion of the Huadian-Teninskaya project is of great significance to the Yaroslavl Province. It will improve the living quality of local citizens,” acting governor of the Yaroslavl Province Dmitry Mironov said during the operating ceremony held on the project site.” (www.news.xinhuanet.com)
China government invites everyone to participate in OBOR. In other words, it is a global economic plan including six big economic corridors. The OBOR plan is different than the US Marshall Plan, in which the US provided billions of dollars to European economies to rebuild, after World War II, in return for providing trade incentives for American businesses to access those same markets. China is big economic power having great reserves, vast experience in infrastructure construction and large markets, and is ready to provide this to the surrounding world to progress together.
In China’s OBOR plan six new trade corridors are:
1. China-Pakistan Economic Corridor
4. The Eurasian Land Bridge
5. China-Central Asia-West Asia.
6. China-Indochina Peninsula
These agreements will benefit local consumers and markets. The beneficiaries of these projects and economic corridors will able to get cheap Chinese products and local trade will promote. The infrastructure of the regions will develop transportations, security, energy, diplomatic and financial investment will enhance.
China has announced “it is ready to invest”. Investment in Belt and Road is open for everyone. China aims to provide sustainable trade route for participating countries and safer way to promote his products and goods.
The OBOR initiative is all about China. China is quite prepared to spend to achieve this because they invest 2 trillion US dollars within the next five years.