The Board of Investment (BoI) showed dissatisfaction over the four-month progress being made by public and private sectors on the Memoranda of Understanding (MoUs) signed during the visit of the Chinese Premier to Pakistan on December 18, 2010.
In an exclusive talk with Business Recorder, Chairman BOI Saleem Mandeviwalla admitted that the work on these MoUs needs to be expedited. BOI had written a letter to Prime Minister Yousuf Raza Gilani to drawing his attention to the matter prior to his visit to China.
So far two meetings of the task force comprising Pakistan and China officials have taken place. Their agenda was to review progress on the MoUs signed between public and private sectors of both the countries. The last review was held on 15th April by task force and attended by stakeholders.
Chinese Three Gorges Corporation (CTGPC), agreed to develop 2000 MW Wind Power Projects and 300 MW Solar Energy Projects. Under the MOU, LOI was issued by AEDB for 50 MW wind power project in Jhampir, Sindh. The first financial close is expected to be achieved in September 2011.
The estimated cost of the project is US $130 million. An Energy Working Group (EWG) with representatives from both sides has been established under this MoU, which has been tasked to identify projects that would, subsequently be shared with Chinese counterparts.
Similarly, the representative of SUPARCO briefed the task force about the MoU signed between SUPARCO and China Great Wall Industries Corporation (CGWIC) for co-operation on Pakistan Remote Sensing Satellite (PRSS) Programme. A high level SUPARCO delegation headed by Chairman SUPARCO visited China from 7-17 January, 2011 to explore possible areas of collaboration in the fields of space science, space technology and their applications. A ten-year (2011-20) proposed plan of co-operation/collaboration between China and Pakistan in the fields of space science and technology is under preparation.
PC-1 for the development and manufacturing of Pakistan Remote Sensing Satellite (PRSS) in co-operation with Chinese M/s CGWIC, was submitted to the Government of Pakistan in 2010. The same is under revision for re-submission to the Government.
The representative of NTDC briefed on the MOU signed during the visit of the Prime Minister of China regarding funding of 12 NTDC Projects by China Development Bank (CDB) through TBEA-RUBA. He explained that NTDC was co-ordinating with M/s TBEA-RUBA for materialising the projects and maintained that necessary steps on both sides were being taken to.
M/s TBEA RUBA have been requested to obtain the salient conditions of funding by China Development Bank, so that financial evaluation of funding could be carried out for approval by Economic Affairs Division and subsequent issuance of Sovereign Guarantee by Government of Pakistan. The task force suggested that continuous follow-up should be made to get the requisite information from China Development Bank and complete the required formalities.
The representative of Lahore Business International briefed on the export of yarn to China in the meeting. Lahore Business International has already exported yarn costing around US $8 million in the first three months of the year to China. The representative of FPCCI revealed that the FPCCI is actively sending bilateral trade delegation and suggested developing technological and electronic zones/parks with Chinese counterparts.