ISLAMABAD – $47 billion worth contracts have been signed for CPEC. Out ofthis, $22bn projects have achieved financial close by the end of PML-Ngovernment.

In the energy sector, financial close was achieved in 14 projects worth$12.25bn. However, financial close was yet to be achieved in 10 projects at$11.34bn.

In the same category, six energy projects valuing at $4.5bn are inoperation, producing power and its payments are due from the current fiscalyear. The total electricity produced from three wind, two-coal based andone solar project is 3,839.5MW.

But the repayment of these and others projects will spread over a period of25-30 years, paid twice a year. It is estimated the six-month instalmentsin CPEC projects would amount to a maximum of $71.5m in the short term.

Sources in the prime minister secretariat said the repayments can even benegotiated in the Chinese renminbi. The repayments start from the time whenthe projects come under operation, the source said.

No projects have reached completion in the area of road, rail, masstransit, PSDP/SPEC and Gwadar till date, the sources said.

As per an alternative plan to pay off the already borrowed money, severalproposals are being considered and suggested to the new government.

CPEC will not become a ‘corridor’ unless the Gwadar-Kashgar oil pipeline isconstructed with a foreign direct investment of around $10bn with almost$1bn of rental every year. The tourist cities outsourced to internationaldevelopers are programmed to bring in about $20bn, the sources added.