China has leased 809 ha of land at Gwadar port in Pakistan for 43 years to build the port’s first free economic zone (FEZ).
Chinese media reported that Gwadar Port Authority has acquired 607 ha of land in June, and another 202 ha will be acquired soon. All requisitioned land is from Pakistan Navy and container depots in Baluchistan.
“Another 500 acres [202 ha] of land will be leased out to China very soon to complete their requirement for the construction of the first FEZ at Gwadar, so the total land of 2,500 acres [1,011 ha] will be provided to their companies,” Pakistani government’s top economic officials told local media.
The construction of infrastructure for the FEZ and economic processing zones will cost USD35 million, according to the port authority.
In April 2015 China won the right to operate Pakistan’s Gwadar port for a period of 40 years, which will give China access to other Gulf countries.
Beijing and Islamabad decided to invest USD46.4 billion under the China-Pakistan Economic Corridor initiative, USD786 million of which would be used for different development projects at Gwadar.
Gwadar, located at the mouth of the Gulf and just outside the Strait of Hormuz, is the gateway for about 20% of the world’s oil.
This post was sourced from IHS Maritime 360: View the original article here.