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Chinese Government provides RMB 1.1 billion interest-free loan for Gwadar Eastbay Expressway Construction Project
| Funder | China Ministry of Commerce |
|---|---|
| Recipient Organization | Government of Pakistan |
| Country | Pakistan |
| Start Date | May 13, 2017 |
| End Date | Jan 19, 2026 |
| Duration | 3,173 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 52431 |
Grant Description
Chinese Government provides RMB 1.1 billion interest-free loan for Gwadar Eastbay Expressway Construction Project On January 1, 2017, China’s Ministry of Commerce and the Government of Pakistan signed an interest-free loan agreement worth RMB 1.1 billion (or $140 million or PKR 14.7 billion) for the construction of Gwadar East Bay Expressway.
Gwadar deep-sea port was originally connected by a narrow 16 feet wide thoroughfare of Gwadar town at the West-Bay.
The Gwadar Eastbay Expressway consists of a new 6-lane expressway and a 30 meters-wide railway corridor that will connect Gwadar Port to Makran Coastal Highway (or National Highway N–10 or Makran沿海公路N-10).
The project was developed as part of the 'Early Harvest' scheme of China Pakistan Economic Corridor (CPEC), and it was part of a wider PKR 170.667 billion ($1.6 billion) development package for the city and Port of Gwadar. China Communications Construction Engineering Company was the contractor responsible for project implementation.
Its work was overseen by the Gwadar Port Authority. On November 22, 2017, construction of the expressway began. As of November 2018, project completion was expected to occur by October 2020. The expressway was ultimately opened to traffic on June 3, 2022. A handover ceremony took place in July 2022.
The Gwadar Eastbay Expressway is now fully operational.
There was disputes between the Pakistan Navy and the Pakistani Government over the handover of plots of land that are under the 40-year lease of Gwadar Port.
The Navy vacated 500 of 584 acres a part of the agreement in 2014, then eventually conceded 12 more acres in 2019 for construction of the Gwadar Eastbay Expressway.
Staff Comments
- One source indicates that the loan agreement was signed on May 13, 2017 rather than January 1, 2017. This issue requires further investigation.
- Different sources record different financial amounts for this project: Pakistani Ministry of Finance Economic Affairs Division yearbook reports the project has a total interest-free loan of $168 million. The Shahid Javed Burki Institute of Public Policy at NetSol records a commitment amount amount of US$141 million. The 2016 Government of Pakistan Bond Prospectus lists the estimated project cost as $140 million. We use the most conservative of these estimates for the time being.
- Since borrowing terms of the interest-free loan are unavailable, AidData has set maturity to 20-years by default and grace period to 10-years by default per China's Foreign Assistance White Paper (http://www.cidca.gov.cn/2018-08/06/c_129925064_3.htm), which states that the maturity of interest-free loans is 20-years, with a drawdown period of 5-years, grace period of 5-years, and repayment over 10-years. AidData treats the drawdown period as providing 5-years of additional grace.
Sources & References
- Economic corridor: China to extend assistance at 1.6 percent interest rate
- 瓜达尔港东湾快速路项目举行开工奠基仪式
- East Bay Expressway
- 援巴基斯坦瓜达尔东湾快速路项目奠基仪式在瓜达尔举行
- 中交建签约巴基斯坦快速路项目 瓜达尔港区位优势将再扩大
- 驻巴基斯坦大使姚敬陪同巴总理阿巴西出席瓜达尔港东湾快速路开工仪式
- Gwadar East-Bay Expressway
- CPEC Gwadar Port City Projects
- Pakistan Economic Survey Transport and Communication 2016-2017
- Pakistan Ministry of Finance Economic Affairs Division Annual Status Report 2015-16
- Pakistan Economic Affairs Division Year Book in the fiscal year of 2016/17
- Pakistan Ministry of Finance Economic Affairs Division Year Book 2015-16
- Pakistan Estimates of Foreign Assistance 2017-2018, 2017 CPEC Review and Analysis
- Annual Plan 2017-18 - Transport and Logistic
- Chinese Company to provide Rs 15 billion interest-free loan to GPA
- Pakistan
- China ink pacts to make Gwadar modern port city
- 对外投资合作国别（地区）指南 —— 巴基斯坦2018版
- 援巴基斯坦瓜达尔东湾快速路项目奠基仪式在瓜达尔举行
- A Presentation to Parliamentary Committee on CPEC
- BRI Factsheet Series – Gwadar East-Bay Expressway
- 瓜达尔港东湾快速路举行开工仪式
- Gwadar Port East Bay Expressway (Construction)
- Gwadar Port East Bay Expressway (Construction), 2016 Government of Pakistan Bond Prospectus
- Govt provided Rs5.8b for Burhan-DI Khan Motorway
- Year Book 2016-2017
- Gwadar Eastbay Expressway completion likely by October end
- Monthly Report for Foreign Economic Assistance
- 中国援助巴基斯坦瓜达尔东湾快速路举行通车仪式
- Pakistan Economic Survey 22-23
- Imran Khan-led PTI govt ‘miserably failed’ people of Gwadar: Pak PM Shehbaz
- Eastbay Expressway to help Gwadar port play role as hub for international logistics: Zhao Lijian
- CPEC body for vacating Gwadar land Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
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Government of Pakistan
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