China halts funding CPEC road projects over corruption

Islamabad, December 5 

China has decided to temporarily stop funding at least three major road projects in Pakistan, being built as part of the US $50 billion China-Pakistan Economic Corridor (CPEC), following reports of corruption, a decision that has left officials in Islamabad “stunned”, a media report said today.

The decision by the Chinese government is likely 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 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 bn. Of this, Rs 66 bn  would be spent on construction of road while Rs 15 bn 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 bn. The third project is Rs 8.5 bn worth, the remaining 136-km of Karakarom Highway (KKH) from Raikot to Thakot.

Originally, all 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. — PTI