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Overview

[CPEC] China offers to fund Dera Ismail Khan-Zhob Project

Commitment Year•2016Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•Transport And StorageFlow Type•Vague TBD

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of Pakistan

Loan desecription

[CPEC] China offers to fund Dera Ismail Khan-Zhob Project

Narrative

Full Description

Project narrative

In 2016, the Pakistan-China Joint Cooperation Committee approved the Dera Ismail Khan-Zhob project. According to the express tribune report, the western route of the China-Pakistan Economic Corridor (CPEC), including the Khan-Zhob project, is going to be completed by the end of 2018 along with other 11 mega projects which were initiated in 2015-16. In January 2017, Pakistan's Under Communications Division provided 120 million Pakistani rupees for the Zhob Mughal Kot road. The division also contributed 40 million Pakistani rupees for the rehabilitation of DI Khan Mughal Kot road. As of Nov 2018, CPEC website only indicates that Feasibility and PC-I have been completed and the LOI has been forwarded to Chinese side. No other progress is indicated. A second CPEC website puts the project cost at US$195 million. It also suggests that the project is an "upgradation of D.I.Khan - Zhob Phase I." It is unclear whether the transaction amount is provided solely by China and in what form the fund is provided. The Pakistan Ministry of Finance Estimates of Foreign Assistance for FY 2017/18 lists this project as a "Dualization of Yarik - Mughal Kot-Zhob Section of N-50". It includes the Zhob Bypass. Cross-checking with the CPEC website confirms they are the same project. According to the source, Pakistan received no loan assistance in FY 2016/17 for the project, and are estimating loans of 4,000 million Pakistan rupees in FY 2017/18.