Pakistan and China are agreed to fast-track infrastructure development in Gwadar. Both sides are consented to expedite construction works in Gwadar particularly on infrastructure projects including New Gwadar International Airport (NGIA), Gwadar Vocational and Training Centre, expansion of China-Pakistan Government Faqeer Colony Middle School and construction of the Pak-China Friendship Hospital and Eastbay Expressway.
Pakistan to sign Power Purchasing Agreement to Start Development in Gwadar
Pakistan is to sign Power Purchase Agreement (PPA), Implementation Agreement (IA) of 300 MW Coal Fired Power Plant and lease agreement to get funding and continue the development work.
After the ground-breaking ceremony of 300MW Gwadar coal-fired power plant held on November 4 2019, Chinese government has recommended Pakistan to sign these agreements for the early implementation and completion of construction work.
Development in Gwadar Free Zone – Latest Update
Pakistan guaranteed China about the provision of Sales Tax Exemption for 23 years on equipment and material purchased locally for industrial units in Gwadar Free Zone. Official documents tell Pakistan and China appreciated the progress of construction of the Initial Zone of Gwadar Free Zone offered for luring business attraction.
Both sides expressed satisfaction on the progress of Gwadar Free Zone development. The Phase-I of Gwadar Free Zone had been completed and all plots have already been leased out to more than 30 Pakistani and Chinese investors registered in the Free Zone.
China and Pakistan agreed that more efforts are required to create attractions for businesses in Gwadar Free Zone. Both sides also established that active efforts such as local tax breaks in Balochistan province and the provision of fiber optic communication are needed to address the remove bottlenecks of Gwadar Port and the Free Zone development.
In this regard, Pakistan would offer concession legislation before the Parliament for promulgation into an act.
Government Fast Tracking Infrastructure Development in Gwadar
Pakistan and China has decided to expedite infrastructure development in Gwadar particularly on the iconic projects of Gwadar International Airport, Pakistan China Friendship Hospital, Gwadar Vocational and Training Centre, expansion of China-Pakistan Government Faqeer Colony Middle School and and Eastbay Expressway.
Fast tracking development on these projects is essential for the overall development in Gwadar. Chinese side has also recommended Pakistan to sign PPA/IA and land lease agreement of 300 MW Coal-Fired Power Plant to get financing and start the construction.
The LOE process for China-Pakistan Friendship Hospital Gwadar and the Vocational and Technical Institute of Gwadar Port has been completed and EPC contractor was also identified. The preparations for ground breaking of the projects are underway.
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