CPEC

1. What is CPEC, What are the major construction projects
under CPEC and which route will facilitate when the trade is
going to be started?
Muhammad Umair BSCT01173148
Asad Iqbal BSCT01173162
Sarmad Hussain BSCT01173155
Rahat Ahmad BSCT01173142
KashifRiaz BSCT01173144
Supervisor
Engr. SyedAdeelGillani
DEPARTMENT OF TECHNOLOGY (CIVIL DIVISION)
UNIVERSITY OF LAHORE
1-Km, Raiwind Road Lahore
SEP, 2020

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Dedication
We dedicate this to our Beloved Parents for all their love & attention which has made it
possible for us to make it up to this point.

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Acknowledgment
Wewould like to express special thanks of gratitude to ourteacherEngr. Syed AdeelGillani
who gave us a golden opportunity to do this wonderful search to the topic CPEC. Which also
helped usin doing a lot of Research and we came to know about so many new things we are
really thankful to them.
Secondly we would also like to thank our friends who helped us a lot in finalizing this project
within the limited time frame.

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Preface
The China Pakistan Economic Corridor (CPEC) is being called a ‘Game Changer’ and a ‘Fate
Changer.’ It is a mega project, by national, regional and international standards when
completed, the project will have a deep impact on Pakistan’s economy, regional economics
and international connectivity.
The CPEC, however, is not just an economic project. It has many civilizational, cultural,
political and strategic dimensions. The core of the project will remain geo-economic but its
implementation would prove to be transformative for contiguous regions of East Asia,
Central Asia, South Asia, West Asia, the Gulf, and Africa. It was, therefore, necessary to look
at the CPEC from different angles and this effort has been made ably by renowned Chinese
and Pakistani writers in this compilation.

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Abstract
The CPEC is a combination of infrastructure development, power generation and research
and development project.Basic purpose of CPEC is to provide routes for linking trade hubs of
China and Pakistan with the global markets and also creating the trade hubs or economic
zones in Pakistan and linking those economic zones with the routes of CPEC and global
markets. However, the CPEC project overall includes various energy projects, social sector
development programs, port development, provincial / local projects focused on local
population through Public Sector Development Programs (PSDP) and Annual Development
Programs (ADP), rail based mass transit projects like Lahore Orange Line Train Project,
development of Special Economic Zones (SEZs) along with infrastructure development
projects for the development of CPEC routes. Integration of SEZs with the routes of CPEC is
an important aspect of CPEC and is vital for the success of project overall. Further, the
integration of energy projects with economic zones and linking the routes with developed
port structures is lifeline of the project. In this perspective, all the energy project,
infrastructure projects, economic zones and port development projects are all major project
of CPEC. However, if further the projects are categorized and specifically take into
consideration which provides instant opportunity for trade and business activities, those
projects are the infrastructure development projects, on one hand which provides the
business opportunities during execution phase and on other, transit trade and small and
medium business activities immediately after completion. Moreover, Western route is the
first route to be completed and it will facilitate the trade activities immediately after
completion by the integration of economic zones and will facilitate the transit trade
immediately after completion. Later on the other two routes i.e. Eastern route and Central
route will facilitate the trade activities. But as the western route is planned to be completed
in first phase of project – which is near to its completion – it will facilitate the trade activities
before all other projects of CPEC. On ground – before the western route is complete in all
respects – trade activity was started in the mid of 2018 when almost hundred Chinese
containers were arrived at Gwadar Port through western route. Therefore, it is obvious that
all three routes will facilitate the trade but the western route along with SEZs, energy
projects and Gawadar Port is the one to facilitate trade initially.

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Contents
Dedication........................................................................................................................................ iii
Acknowledgment ..............................................................................................................................iv
Preface.............................................................................................................................................. v
Abstract ............................................................................................................................................vi
Introduction of CPEC ......................................................................................................................... 1
History .............................................................................................................................................. 2
Background ................................................................................................................................... 2
Announcement of CPEC..................................................................................................................... 2
Main article: .................................................................................................................................. 2
Institutional Framework of CPEC ....................................................................................................... 3
List of Projects................................................................................................................................... 4
Energy Projects.................................................................................................................................. 4
Infrastructure Projects....................................................................................................................... 5
Gawadar Projects .............................................................................................................................. 5
Rail Based Mass Transit Projects........................................................................................................ 5
CPEC Provincial Projects .................................................................................................................... 5
Western Route Projects..................................................................................................................... 6
Special Economic Zones (SEZs)........................................................................................................... 6
Which route will facilitate trade and how? ...................................................................................... 11
Western Route ................................................................................................................................ 11
Eastern Route.................................................................................................................................. 13
Central Route .................................................................................................................................. 13
Where are these three routes (Western,Eastern,Central) linked...................................................... 14
Highways Network of CPEC.............................................................................................................. 14
Recommendation............................................................................................................................ 15
Conclusion....................................................................................................................................... 16
References ...................................................................................................................................... 17

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Introduction of CPEC
The China-Pakistan Economic Corridor (CPEC) is an assortment of infrastructure projects
currently under development in Pakistan. The cumulative value of all CPEC projects is
$62 billion with future projects expected to amplify the valuation considerably. CPEC
intends to massively improve the Pakistan economy by rapidly enhancing the
country’s infrastructure including modern transportation networks, energy projects,
and special economic zones.
Although CPEC work is still in its infancy stages it has already helped Pakistan ascend the
global competitiveness scale. According to a report by PWC Pakistan will be the world’s 20th
largest economy by the year 2030 and CPEC will result in the creation of over 2.3 million
new jobs.
CPEC has significant strategic and economic importance for China and Pakistan as it links
China with markets in the Middle East, Africa and Asia. Xinjiang, China’s largest province,
will be connected with the port of Gwadar in Baluchistan.
Launched in 2015, CPEC is the flagship project of BRI. Declared by China’s President Xi as
‘the project of the century’, the Belt and Road Initiative (BRI) will deliver an estimated $5
trillion worth of investment into the infrastructure of 52 countries.
BRI will reinvigorate the old Maritime Silk trading route and increase connectivity between
the Asian, European and African continents. Pakistan is one of the countries that will benefit
significantly from BRI, with the port city of Gwadar in a prime location for investment.

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History
Background
Plans for a corridor stretching from the Chinese border to Pakistan's deep water ports on
the Arabian Sea date back to the 1950s, and motivated construction of the Karakoram
Highway beginning in 1959. Chinese interest in Pakistan's deep-water harbour at Gwadar
had been rekindled by in 2002 China began construction at Gwadar port which was
completed in 2006. Expansion of Gwadar Port then ceased thereafter owing to political
instability in Pakistan following the fall of General Pervez Musharraf and subsequent
conflict between the Pakistani state and Taliban militants.
In 2013, the then Pakistani President Asif Ali Zardari and Chinese Premier Li Keqiang decided
to further enhance mutual connectivity. A memorandum of understanding on cooperation
for long-term plan on China–Pakistan Economic Corridor between the two governments was
inked by Xu Shao Shi and ShahidAmjad Chaudhry.
In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans
for an economic corridor in Pakistan. Two months later, Pakistan Prime Minister Nawaz
Sharif met with Premier Li Kequiang in China to discuss further plans, resulting in the full
scope of the project to be devised under Sharif's tenure. In November 2014, Chinese
government announced its intention to finance Chinese companies as part of its
$45.6 billion energy and infrastructure projects in Pakistan as part of CPEC.
Announcement of CPEC
Main article: 2015 Xi Jinping visit to Pakistan
During the state visit of Chinese leader Xi Jinping to Pakistan in April 2015, he wrote in an
open editorial stating: "This will be my first trip to Pakistan, but I feel as if I am going to visit
the home of my own brother." On 20 April 2015, Pakistan and China signed an agreement to
commence work on the $46 billion agreement, which is roughly 20% of Pakistan's annual
GDP, with approximately $28 billion worth of fast-tracked "Early Harvest" projects to be
developed by the end of 2018.

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Institutional Framework of CPEC
The institutional framework of China Pakistan Economic Corridor CPEC is basically a decision
making framework which consists of Joint Commission Committee (JCC). All the major
decisions related to CPEC are finalized in this meeting with the mutual collaboration of
Pakistan and China. Joint Committee Commission (JCC) is further divided into five-level
hierarchy which are Economic zone, Gwadar, Planning, Energy, transport.

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List of Projects
Energy Projects
1. Sahiwal 2x660MW Coal-fired Power Plant, Punjab
2. 2×660MW Coal-fired Power Plants at Port Qasim Karachi
3. HUBCO Coal Power Project, Hub Baluchistan
4. Engro 2x330MW Thar Coal Power Project
5. Surface mine in block II of Thar Coal field, 3.8 million tons/year
6. Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam
7. Hydro China Dawood Wind Farm(Gharo, Thatta)
8. UEP Wind Farm (Jhimpir, Thatta)
9. Sachal Wind Farm (Jhimpir, Thatta)
10. Three Gorges Second and Third Wind Power Project
11. SSRL Thar Coal Block-I 6.8 mtpa& Power Plant(2×660MW) (Shanghai Electric)
12. HUBCO Thar Coal Power Project (Thar Energy)
13. ThalNova Thar Coal Power Project
14. Karot Hydropower Station
15. Suki Kinari Hydropower Station, Naran,KhyberPukhtunkhwa
16. Matiari to Lahore ±660kV HVDC Transmission Line Project
17. 300MW Imported Coal Based Power Project at Gwadar, Pakistan
18. Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine
19. Kohala Hydel Project, AJK
20. Cacho 50MW Wind Power Project
21. Western Energy (Pvt.) Ltd. 50MW Wind Power Project
22. Azad Pattan Hydel Project, AJK

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Infrastructure Projects
1. KKH Phase II (Thakot -Havelian Section)
2. Peshawar-Karachi Motorway (Multan-Sukkur Section)
3. Khuzdar-Basima Road N-30 (110 km)
4. Upgradation of D.I.Khan (Yarik) - Zhob, N-50 Phase-I (210 km)
5. KKH Thakot-Raikot N35 remaining portion (136 Km)
Gawadar Projects
1. Gwadar East-Bay Expressway
2. New Gwadar International Airport
3. Construction of Breakwaters
4. Dredging of berthing areas & channels
5. Development of Free Zone
6. Pak China Friendship Hospital
7. Pak-China Technical and Vocational Institute at Gwadar
8. Gwadar Smart Port City Master Plan
Rail Based Mass Transit Projects
1. Karachi Circular Railway
2. Greater Peshawar Region Mass Transit
3. Quetta Mass Transit
4. Orange Line – Lahore
CPEC Provincial Projects
1. KetiBunder Sea Port Development Project
2. Naukundi-Mashkhel-Panjgur Road Project connecting with M-8 & N-85
3. Chitral CPEC link road from Gilgit, Shandor, Chitral to Chakdara
4. Mirpur – Muzaffarabad - Mansehra Road Construction for connectivity withCPEC
route

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Western Route Projects
1. Hakla D.I Khan Motorway (285Km)
2. D.I Khan (Yarik) –Zhob (N-50) (210 Km)
3. Zhob Quetta (N-50) (331 Km)
4. Khuzdar-Quetta– Chaman Section (N-25) (431 Km)
5. Surab-Hoshab (N-85) (449 Km)
6. Gwadar – Turbat – Hoshab (M-8) (193 Km)
Special Economic Zones (SEZs)
1. Rashakai Economic Zone , M-1, Nowshera
Rashakai Special Economic Zone (REZ), located near M-1 Nowshera, is set to be established
in Khyber Pakhtunkhwa (KP). The 1000 acres land of REZ will be developed in three phases.
The total area designated for Industrial use is 702 acres and as per Federal SEZA Regulations,
of which 159 acres will be developed in Phase I, 279 acres in phase II and subsequently 264
acres in Phase III. For commercial use, an area of 76 acres has been allocated.
Industrial Potential:
The following industrial clusters/sectors are proposed/planned
• Garment and Textile Products
• Home Building Materials,
• General Merchandize
• Electronics and Electrical Appliances
• Automobile and Mechanical Equipment
2. Dhabeji Special Economic Zone
The Government of Sindh has allocated 1530 acres of land to establish Dhabeji Special
Economic Zone (DSEZ) in Thatta. Utilities (i.e. electricity, gas) will be available in the Dhabeji
SEZs in 2021 and 2022. Development of Dhabeji SEZ is planned in 3 phases.
DSEZ has the potential to transform into an Expatriate Enclave with modern infrastructure
and fiscal incentive package. Sindh Economic Zones Management Company (SEZMC),
Government of Sindh, is provincial agency to develop and manage Dhabeji SEZ.

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The following industrial clusters/sectors are proposed/planned to be established in DSEZ
 Steel-Foundries
 Automotive and Auto parts
 Chemical & Pharmaceuticals
 Consumer Electronics Engineering
 Textile & Garments
 Warehousing
 Building Material
3. Bostan Industrial Zone
Bostan is one of the pSEZs located in Balochistan over the area of 1000 acres. Bostan
Industrial Zone situated at district Pishin bordered with Quetta (provided with enough
skilled labor), QilaSaifullah (famous livestock, fruits and vegetables), Ziarat (famous for dry
fruits, apple and grapes) and Qila Abdullah (climate suitable for fruits and vegetables).
Federal Government has proposed to include Bostan SEZ (Balochistan) in prioritized SEZs.
Therefore, the plan of action, funding requirement and other modalities are yet to be
presented and finalized from relevant authorities.
Following clusters/sectors are proposed to be established at Bostan Industrial Zone:
 Fruit Processing
 Agriculture machinery
 Pharmaceutical
 Motor Bikes Assembly
 Chromite
 Cooking Oil
 Ceramic industries
 Ice and Cold storage
 Electric Appliance
 Halal Food Industry

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4. Allama Iqbal Industrial City, Faisalabad
Allama Iqbal Industrial City (AIIC) is the largest among pSEZs in terms of area with 3217
acres. The Allama Iqbal SEZ has advantage for being adjacent to M3-Industrial city which
comprises of large number of projects including textile, pharmaceuticals, information
technology, chemicals automotive, service complex, etc.
Land has been acquired for AIIC, and construction work is in progress since November, 2019.
Utilities provision in the Allama Iqbal SEZ will be completed in phases to be covered in year
2020, 2021, and 2022. Standard size of plot is minimum 1 acre available for investors in all
prioritized SEZs.
Faisalabad Industrial Estate & Management Company (FIEDMC) is the developing body of
Allama Iqbal SEZ. A number of national and international companies have expressed their
interest to start business units within AIIC. Based on businesses interest, the SEZ has great
potential for attracting foreign direct investment (FDI), employment generation and
contribution towards exports.
5. ICT Model Industrial Zone, Islamabad
Model ICT Zone is based in the capital city of Islamabad spanning over the area of 200-500.
The zone has the advantage of being connected to well-established infrastructure, logistics
network and trade routes (Railways, airport, highways). Full availability of water, electricity,
drainage and communication systems will ensure the successful businesses in ICT model
industrial zone.
The investments in ICT Zone are mainly focused on high -tech industry, IT and related
sectors. Following industries are most suitable to be established in Model ICT Zone:
 IT & related industries
 Steel
 Food Processing
 Pharmaceutical & Chemicals
 Printing and Packaging
 Light Manufacturing

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6. Industrial Park Pakistan Steel Mills Port Qasim
Port Qasim SEZ ideally located in a place connected to well-developed infrastructure for the
movement of goods (input, semi-finished and finished). The zone covers the area of 1500
acres. It is situated at a distance of 15 km from national highway, at14km from railway track
and at a distance of 22km from Airport ultimately lessen the transport cost. Port Qasim has
the largest oil terminal among other terminal facilities including container, liquid chemical,
and multipurpose terminal making the business easier at that place along with the
availability of basic utilities like portable water, power, gas, telecommunications, banking
and other facilities including transshipment and transit trade facilities with Afghanistan and
Central Asian Republics.
Investments are encouraged in the following sectors
 Steel
 Auto & allied
 Foundry and Fabrication
 Warehousing & Logistics
 Pharma
 Chemical
 Printing and Packaging
 Garments etc.
7. Mirpur Industrial Zone, AJK
Mirpur Industrial Zone with area 1078 acres is in the district of AJK bordered with west
Punjab. Mirpur city is one of the largest cities of AJK and has undergone different
development projects. Near Zone the connectivity hubs (airport, seaports and railway
station) in nearest regions would help enterprises to start their businesses. The nearest
airport in Muzarffabad is in development stage. The developed airport “Islamabad airport”
is 122 km away from the Mirpur to facilitate the trade and transportation of goods and
human resources at initial stage of development.
Mix industry is proposed at Mirpur Industrial Zone.

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8. Mohmand Marble City
Mohmand Marble City (MMC) is one among the other 9 proposed priority SEZs, is
announced in Mohmand agency, KP. It consists of 350 acres. Mohmand Agency bordered
with Charsadda, rich in Minerals and Agriculture, Bajaur Agency, Khyber agency and
Afghnistan, which are naturally rich in marble and other minerals including Uranium,
dimensional stones, granite, coal, marble, manganese ore, limestone.
Marble & other Mix industry are proposed industrial clusters.
9. Moqpondass SEZ Gilgit-Baltistan
Moqpondass is a place selected for one of the proposed 9 priority SEZs under CPEC in Gilgilt
Baltistan (GB) that is bordered with Afghanistan to the north, China to the northeast, and
the Pakistani administrated state of Azad Jammu and Kashmir (AJK) to the south.
The Moqpondass SEZ of GB, naturally rich in precious stones, fruits. The proposed SEZ would
be connected through nearest Airport 35KM, Sost Dry port 200KM, CPEC Route 4KM on
Gilgit-Skardu Road.
Based on the available endowment structure following potential industries are identified:
 marble and granite
 iron ore processing
 fruit processing and value addition,
 steel industry
 mineral processing and value addition
 leather industry

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Which route will facilitate trade and how?
Western Route will facilitate the trade initially so discuss the western route.
Later on eastern and central route will also be facilitating trade
Western Route
Western route starts from Gwadar and passes through Turbat, Pnajgur, Khuzdar, Kalat,
Quetta, Zhob, Dera Ismail Khan, Bannu, Kohat, Peshawar, Hassanabdal and Abbotabad from
Abbotabad the further route is the same with eastern route.
1. Gwadar – Quetta Expressway N 85, which is 650 km long.
2. Halka – Dera Ismail Khan (Brahma Baht) motorway, four lane, 280 km long.
Upgradation between Quetta-Zhob and between Zhob-Dera Ismail Khan
3. Hazara-HavelianThakot Motorway 180 km.
4. Gilgit-Skardu (S-1) 167 km.
Sari Gambila- Kohat Highway 128 km long, estimated cost 30 billion rupees with 4 lanes.
The western route is the original route of CPEC. It is the shortest route of 2442 km than
eastern route which is more than 3000 km. But it is a fact that western route passes through
hilly areas of KPK and Balochistan which is difficult to travel. It is also a fact that western
route is not being constructed by the fund of CPEC. It is purely constructed by the financial
assistance of Federal Government of Pakistan. China was not agreed on western route of
CPEC because of the security situation of KPK and Balochistan. At first Federal Government

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of Pakistan deferred this project but after the strong protest of the nationalist parties and
provincial government of KPK and Balochistan Government decided to construct western
route along with eastern route.
The work on the link roads is in progress which connects the major cities of Pakistan to
China-Pakistan Economic Corridor (CPEC) Karachi-Lahore Motorway of 6 lanes a length of
1152 km long, will be constructed. First phase of the project has been started in November
2015 with initially approximately cost of $1.5 billion. Some part of the Karachi-Lahore
Motorway will be constructed with the special assistance of UK (United Kingdom)
Government.
On June 21, 2014 Prime Minister of Pakistan Mian Muhammad Nawaz Sharif ordered to
construct a Rail link to connect Pakistan and China amount of $3.69 billion is estimated for
its construction, rehabilitation and replacement of track from Karachi to Peshawar.
More than 50 under passes, 500 bridges will be constructed and 438 km rail track will
doubled.
A sum of $0.44 billion is reserved for optical fiber cable between Pakistan and China for fast
communication of Pakistan with China and rest of the world. More than 85% fund is given
by China.

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Eastern Route
Eastern route start form Gawadar port its run parallel to Markan Cost highway directly reach
to karachi. Eastern route passes through major big cities of Pakistan like in Sindh (Hydrabad,
Mir Purkhs , Sukkar) in Pujnab (Fisalabad,Multan,Lahore) to reach Rawalpindi-
Islamabad.Then it enter into KPK and passes through Haripur, Abbotabad(Osama Bin Laden
residence) and Mansera district and it finally passes through Gilgit Baltistan. This route is
longer as compare to Western route.It consists of 1152 KM Motor highway with 6 lane
estimated cost $ 6.64 billion.
Central Route
Central Route that will originate from Gwadar, Quetta and reach DI Khan via Basima, Khuzdar,
Sukkar, Rajanpur, Liya, Muzaffargarh, Bhakkar, DIK.

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Where are these three routes (Western,Eastern,Central) linked
All these routes come to Islamabad and then there is only one route from Islamabad to
Khunjerab border which passes through Gilgit Baltistan province.
Highways Network of CPEC

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Recommendation
 Make efforts to diversity market in china
 Security issues, law and order system are main obstacles in the way of CPEC
 To make positive balance of trade Pakistan should increase exports
 Agriculture products
 Textile products
 Leather
 Pakistan should develop the training centers and Chinese language centers in order to make
effective communications

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Conclusion
Though South Asia has two-third of the world‘s population, it is regarded as one of the most
less integrated territories of the world. One main cause of this fact is the high rate of
unemployment due to not having entry to markets and other business opportunities.
CPEC will provide South Asia an opportunity to access inaccessible marketplaces and bigger
financing resulting in industrial development and growth of less-developed regions in
Pakistan and China. It will generate extensive employment opportunities to provide people
with appropriate jobs. At the same time, relationships built on the business, economy and
societal and cultural aspects will grow and pave a path towards a renaissance of “ancient
silk route”.
We also conclude that, though CPEC is believed to be a game-changer for the entire
territory, there’s also the absence of unanimity on the choice of paths, the synchronization
amid stakeholders, the distribution of economic zones and other development projects. In
spite of the extraordinary benefits of the CPEC, from a political point of view, we propose
that it is crucial for the governments to work together to assist in the smooth and effective
operations of the projects by offering a substantial and consistent political atmosphere. This
is because political consistency is considered to be an eminent precondition for the
successful completion of economic corridors, as the advantages brought might be relatively
limited due to possible damages triggered by political unrest. Also, policies that improve the
development and encourage the applications of economic corridors must be initiated to
continue the sustainability of the initiative.
Lastly, with the goal of helping take full advantage of the advantages of CPEC, we suggest
three managerial proposals for the strategic design of CPEC. First, there has to be a central
coordination committee in order to avoid potential political clashes of diverse political
systems and philosophies and economic feasibility of cross-border projects. Second,
Pakistan, in particular, should devise a strategy to create accord on the choice of routes, the
synchronization amongst stakeholders, the distribution of economic zones, and other
infrastructure development projects. Third, both Pakistan and China should (must) address
domestic and global challenges. China, in particular, should convince world powers
(especially anti-CPEC powers) that CPEC is meant purely for regional economic development
and that China has no other hidden intentions of destabilizing the region.

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References
1. https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor
2. http://cpec.gov.pk/institutional-framework/5
3. http://cpec.gov.pk/energy
4. http://cpec.gov.pk/infrastructure
5. http://cpec.gov.pk/gwader
6. http://cpec.gov.pk/mass-transit-projects
7. http://cpec.gov.pk/new-provincial-projects
8. http://cpec.gov.pk/western-route
9. http://cpec.gov.pk/special-economic-zones-projects
10. https://obortunity.org/cpec-news/cpec-special-economic-zones-sezs/
11. https://web.facebook.com/ChinaPakEconomicCorridor/posts/cpec-routes-eastern-
central-and-westerncpec-pakistan/1976672465934611