CPEC not a debt trap. Ignore the propaganda

/u/greenvox, this is for you

China has put the total cost of 12 energy projects at $12.6 billion.

The Chinese Deputy Chief of Mission Lijian Zhao also shared terms of these deals. He told media that repayment period was 15 to 20 years including 5 to 8 years grace period.

He said all the energy projects that are currently under implementation have been financed by the Chinese companies by taking commercial loans. “Interest rates of these commercial loans are in the range of 5.3% to 6.3% including the insurance cost,” he said.

Now you can correct me if I'm wrong but the way he has worded it means that they've taken out loans (purely for energy) worth $12.6B at interest rates of 5.3-6.3%.

Know the worst thing? This was only 2 months before-

Coming to the energy sector, Hassan Daud told that so far $ 22 billion has been spent on CPEC projects out of which $ 5 billion is loan and $1 billion is grant. He said the estimated cost of CPEC projects stands at $48 billion out of which 72 percent, which amounts to $34.746 billion, purely belongs to energy projects. In the energy sector, there is no loan amount at all from Chinese side as it is investment from China under IPP mode. He also told that in CPEC projects, as many as 65,000 Pakistanis have got employment directly and indirectly, whereas 10,000 Chinese nationals are also working.

Hassan Daud Butt, Coordinator CPEC of the Planning Commission told a Senate committee here on Monday.


I don't even...

/r/pakistan Thread Parent