Pakistan and China to sign MoU for Basha Dam financingISLAMABAD: Pakistan and China are set to sign Memorandum of Understanding (MOU) in the next week to
seek soft loan from China for carrying out the construction Diamer Bhasha Dam project, official sources in Water and Power Ministry told Daily Times on Thursday.
Sources told that President Pervez Musharraf would visit China on April 8 to 10 according to tentative schedule and two sides would sign MOU for Bhasha dam financing.
They said that Pakistani authorities would present the draft of detailed engineering design to the Chinese authorities to seek loan for the construction of Bhasha dam. “After analysing the draft design of the dam, China will give comments on it and offer the loan for the dam construction,” official added.
Sources said that World Bank’s terms and conditions for the loan for the construction of such mega project are tight and keeping in view that scenario Pakistan has decided to seek loan from China that would offer loan on soft terms and conditions.
Sources said that the whole funding would not be generated from China and however major chunk of the money would come from it after MOU signed between two countries. They said that China would be a main player in joint venture for generating financing for the construction of Bhasha dam.
When asked whether China would participate in the construction of the project, sources said, that China would want to take award of the construction of the dam project because it has been the policy of china to take project for the construction for which it provides financing.
Chinese state run company D
ong Fong has recently signed the contract with Pakistan for carrying out the 525MW gas based thermal power plant at Chichoki Mallian and it is also working on 450MW power project at Nandipur (Gujranwala). Chinese company has the experience of working on dam also like Gomal Zam dam and China may take the project for the construction, sources added. Chinese company is also working Neelum-Jhelum Hydropower Project.
Sources said that Pakistan would also sign agreement with
Chinese Company Sino Coal that is willing to work on coal in Thar. The Chinese company will initiate the project of coal in Thar, sources added.
The Chinese company, Shenhua after spending three years rolled back from the project for mining coal in Thar. The company has spent around 25 million dollars during the project on the construction of road, water and power availability. When it mined the coal that was not of high quality, the company was further asked to further process the coal but company denied and rolled back, sources said. Now,
Chinese Company Sino Coal is willing to work on coal projects in Thar and agreement would be signed with the company during upcoming President Pervez Musharraf visit to China, sources added.
By Zafar Bhutta
http://www.dailytimes.com.pk/default.asp?p..._4-4-2008_pg5_8