China's overland Silk Road and Maritime Silk Road Thread

timepass

Brigadier
There is no charity in this world Most of those project are funded by the bank(SOE or private) So they expect return in the form of interest or stake in the company. The PRC my nudge those bank to lend it to Pakistan with implicit guarantee.

I think they are going overboard Not sure if those loan will be realized MOU doesn't mean disbursement of the loan

That's what I said don't give sweeping statement prior having the complete info....

FYI... $ 35 billions are through investment by Chinese firms (mainly in IPPs) hence they are responsible of their own business & return of loans to their respective banks. while remaining is the direct Chinese investment on Rail/Road network.

Appreciate kindly do the prior study on CPEC investment....Thanks...
 

timepass

Brigadier
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: Boiler startup test 1320 MW
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coal power plant. Our engineering graduates learning to work for a prosperous Pakistan.

Sahiwal Coal Power Plant will start producing electricity of 660 MW next month and this plant will add up 660 MW more electricity by June.

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dingyibvs

Senior Member
There's a way to reconcile both of you two's arguments. The continuity that exists within the Chinese government allows it to make longer term investments, ones that don't have to justify itself by the next quarterly report (I'm exaggerating, but you get the point). Having a stable, prosperous, and friendly Pakistan is in China's long term interest, so even if some of the projects don't offer good returns in and of themselves, it could still end up being profitable for China over the long run with improved export market, energy security, etc.

With that said, even many private firms in China are implicitly backed by the government, and the state banks can be nudged to give better access to credit to the private firms who intend to take on projects in CPEC. Most infrastructure projects, particularly in the transportation sector (roads, rails, etc.) are not profitable, but the economic benefits they bring to the regions they traverse can be invaluable as long as proper supporting infrastructure is built as well. This is why democracies and particularly private companies are ill suited for infrastructure projects. A lack of consistent, long term vision can render a large infrastructure uless, e.g. building a massive port but nothing around it to use it (see Hambantota) in a democracy. Inability to fully take advantage of the benefits the infrastructure brings, e.g. rise in real estate, retail, tax revenues etc., often dooms private firms.
 
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