ISLAMABAD: Following reports of corruption, China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the $50 billion China-Pakistan Economic Corridor, a decision that has left officials in Islamabad "stunned", a media report said.
The decision by the Chinese government is likely to hit over Rs 1 trillion-worth road projects of the Pakistan's National Highway Authority (NHA), and initially, may delay at least three such ventures, Dawn newspaper reported. According to a senior government official, the funds would be released after Beijing issues 'new guidelines'.
The nearly $60 billion CPEC, a flagship project of China's prestigious One Belt One Road, passes through Pakistan -occupied Kashmir (PoK). It links China's restive Xinjiang region with Pakistan's Balochistan province. The road projects that are likely to be affected include 210-km-long Dera Ismail Khan-Zhob Road, being built at an estimated cost of Rs 81 billion. Of this, Rs 66 billion would be spent on construction of road while Rs 15 billion on land acquisition.
The other project which is going to be hit is 110-km-long Khuzdar-Basima Road, having an estimated cost of Rs 19.76 billion. The third project is Rs 8.5 billion worth, the remaining 136-km of Karakarom Highway (KKH) from Raikot to Thakot. Originally, all the three projects were part of the Pakistan government's own development programme, but in December 2016, the NHA spokesperson had announced that they would be included under the CPEC umbrella so as to become eligible for concessionary finance from China.
"The funds for the three road projects were approved in the 6th Joint Cooperation Committee meeting held last year, pending necessary procedural formalities. "It was expected that the funding of the three projects would be finalised during the Joint Working Group (JWG) meeting held on November 20, but Pakistan was informed in the meeting that 'new guidelines' will be issued from Beijing under which new modus operandi for release of the funds will be described," the official was quoted as saying.
The decision of the Chinese government was conveyed to Pakistan in the JWG meeting and the existing procedure for release of funds had been abolished, he said. Under the previous procedure, the projects were to be approved by six different forums after which the funds were released, the official added.
