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Takeaways from the 7th JCC Meeting on CPEC

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China and Pakistan have been working to promote the construction of the CPEC project through sustenance of Joint Cooperation Committee (JCC). According to the available in formation on the official websites of the CPEC, there are five working groups which include long-term planning, energy, transportation infrastructure, industrial cooperation and Gwadar Port.JCC deals with the overall planning and coordination while the above mentioned working groups are responsible for the detailed planning and implementation of the projects under CPEC.

Since Aug 2013,seven JCC meetings have been held to review the progress on CPEC. The first ever meeting of JCC on CPEC was held in Islamabad on Aug 28, 2013 which symbolized the joint efforts of both countries to promote the implementation of the relevant work on the key areas of infrastructure, energy and investment. The summary for the long term planning of CPEC project was prepared on the basis of mutual understandings of both countries. Second JCC meeting was held in Feb, 2014 in which feasibility studies on 16 energy projects were approved.  Third JCC meeting was held onAug 27, 2014 in which the prioritized or early harvest projects under CPEC were finalized. Fourth JCC meeting was held in Beijing on 25 March, 2015 where many selected energy projects including coal based, hydel, solar and wind energy projects were reviewed. This meeting also reviewed the reports presented by the joint working groups on five key areas. Fifth meeting was held in Pakistan on 10-12 Nov, 2015. In this meeting it was concluded that the construction of Diamer-Bhasha Dam should be included along with the accorded approval of the coal-based power plants to be built at the Thar Desert in Sindh province to enhance the capacity from 660-2600 MW.The 6thJCCmeeting was held in Beijing on December 29, 2016 in which several new projects were signed. Each province was set to get an industrial zone.It was concluded on a pleasing note to speed up the development of the existing projects. Important decisions taken during this meeting include that a 1320 MW power plant will be completed in Sahiwalin 2017.

The most recent 7th JCC meeting on CPEC was held on Nov 20, 2017 in Islamabad. The key points of this meeting included the signing of much debated CPEC Long Term Plan (LTP)2014-2030 which includes collaboration in areas of industrial cooperation, agriculture, tourism and financial cooperation. It has attempted to formalize the future roadmap for industrial and economic collaboration involving special economic zones along the CPEC stretch in Pakistan and adopt a Long Term Plan (LTP) 2030.It has been inferred that the main focus of the seventh JCC meeting remained on the  special economic/industrial zones  while the five joint working groups (JWGs) met earlier on the Nov 20, 2017 to remove any irritant and suggested the five ways on the projects pertaining to — Gwadar, energy, transport infrastructure, special economic zones. Pakistan’s primary objective is to enhance its industrial capacity from assembling imported parts to local production of goods and encouraging China’s enterprises to invest in Pakistani market to improve the energy efficient appliance industry.

Moreover, Khyber-Pakhtunkhwain this meeting raised its preference for Rashakai industrial estate over Hattar in unequivocal terms and the China has agreed to the provincial right of site selection for industrial estates. Furthermore, since China’ s proposed financial structure regarding Diamer-Bhasha Dam was not approved by Pakistan yet, still it provides the two sides with an opportunity to generate a debate for the future development of this project. . There was also an ample discussion on the railway projects, Gwadar International Airport, energy projects and industrial estates, already included in the CPEC with the focus on the implementation of the existing projects and the finalization of the feasibility reports of these projects. Under the road map, the Chinese side would start investing in the nine Special Economic Zones directly after JCC’s clearance to avail benefits of tax exemption.

The cabinet committee on the CPEC presided over by Prime Minister Shahid Khaqan Abbasi has already cleared the proposals for the fresh projects and nine SEZs.This will offer 15- to 20-year tax exemption to China in case investment is made before 2020.

In a nutshell, the chronological order of the seven JCC meetings shows that there are following the projects which Pakistan has been pursuing in the last seven meetings of JCC which include Diamer-Bhasha dam, the Main Line 1 (ML1is considered as the logistic backbone of this corridor) up gradation of the Peshawar to Karachi railway line, the Karachi Circular Railway, and three road projects (which include KKH (remaining portion), D.I.Khan to Zhob and Khuzdar to Basima, Completing feasibility and other formalities of Gilgit—Shandur—Chitral—Chakdara and Naukundi—Mashkhel—Panjgaur roads coincided with 7th JCC). The approval of the project ML1 is awaiting the cost estimates which would be generated within the coming three months.

Federal Minister Ahsan Iqbal said that the Long Term Plan would be public on 18th of December, 2017 which would further add the prospects for more inclusive research of this mega project.  Simultaneously there are bright prospects to jack up the developments in various sectors which include agriculture, information technology.  This demonstrates the success of this meeting and the willingness of China to diversify its cooperation under the CPEC project. In this backdrop, the harmony between the provincial and federal governments is required and they should work enthusiastically for the inclusion of more projects under CPEC and to complete the ongoing projects.

It can be hoped that the end result would be productive and the project will be able to proceed. The continuity of the meetings of Joint Cooperation Committee since 2013 to Nov 2017 shows the evaluation and the progress of work on the ongoing projects under CPEC. 7th JCC has further deepened mutual cooperation between the two countries under the framework of CPEC and would pave a clear way for Pakistan to enter the phase of Industrial Cooperation.

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CPEC: Geo-strategic and economic significance

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Authors: Vahid Pourtajrishi & Tayyebeh Vakilotojar

The China Pakistan Economic Corridor (CPEC) is of prime importance for Pakistan as it can act as the game changer boosting the economic and geopolitical role of Pakistan in the questions of the region.

Roots of China-Pakistan linkages date back to many centuries into the fabled Silk Route connecting the civilizations of India, China, Persia and Europe. Though separated by the formidable mountain ranges of Himalayas and Karakoram, the two regions remained connected through numerous mountainous tracks and routes which not only facilitated trade and travel but also the flow of ideas, culture and religion. Construction of the Karakoram Highway which was completed in 1978 provided all weather links between Pakistan and China, hence, further promoting trade and culture.

The Frontier Works Organization (FWO) is undertaking massive infrastructure development program all over Pakistan and particularly the China Pakistan Economic Corridor (CPEC).It is constructing a part of the CPEC’s Western Route in Baluchistan and a portion of the Eastern Route besides maintenance of the Karakoram Highway (KKH). Road projects in Baluchistan will link Gwadar Port with Quetta, Chaman and Rattodero at the Indus Highway and bring forth a change in socio-economic dimensions of Baluchistan and Pakistan in general. With the completion of 870 km portion of the road infrastructure developed by FWO, not only people of interior Baluchistan will be benefitted but Gwadar Deep Sea Port would also be linked with Chaman, reducing the distance by nearly 400 km. construction of Lahore-Islamabad and Karachi-Hyderabad Motorways on Built-Operate-Transfer (BOT) basis will facilitate the pace of development to take on the challenges of the CPEC.

Completion of Gwadar Port in 2007

The distance between Gwadar and Kashgar, Xinjiang province (China) is nearly 2,800 KM while the route in Pakistan comes about 2,442 km, comprising highways, energy pipelines and industrial estates stretching from Gwadar to Kashgar through Khunjerab to benefit the economies of the two countries .

According to the Asian Development Bank (ADB), the project “will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of CPEC economic resources. They link the supply and demand sides of markets”.

Communication infrastructure of the CPEC will connect the vast but landlocked Western Chinese region with the Arabian seaport of Gwadar thereby giving it a direct and shorter access to the trade markets of the Middle East and beyond.  FWO, the leading infrastructure development organization of Pakistan, created specifically for the Pakistan-China connectivity through construction of Karakoram Highway five decades back, has a pivotal role to play in implementation of this gigantic and crucial venture.

Two great routes, including the Grand Trunk Road (GT Road) and the Silk Route have served the Indian subcontinent. Link with China through Silk Route was not a single road but a vast network of interconnecting routes that linked the East and the West for nearly two millennia. Karakoram Highway, in 1947, the northern areas were accessible via two routes: the Srinagar Astore-Gilgit mule track and the Kaghan Valley Track over the Babusar Pass and Chilas. After 1948 Kashmir War, the Srinagar Route was denied to Pakistan and the entire northern areas became dependent on the Kaghan Valley Route.

Gwadar is considered to be the gateway to South West and Central Asia. Located at the mouth of the Persian Gulf, 624 nautical km to the east of the Strait of Hormuz, Gwadar port has immense strategic significance. The CPEC is a classic manifestation of convergence of geostrategic and geo-economic interests of the two countries bonded in time tested socio-economic and diplomatic relations with absolute trust in each other.

Gwadar Port will not only serve as a shortest route for China’s oil supply but it will also reduce the cost of supplying oil by billions of dollars. Fully functional Gwadar Port connected with China and Central Asia can play a role in the economic revival of Pakistan being located at the crossroads of huge supplying and communicating markets. FWO owes its birth in 1966 to Karakoram Highway. By managing a large work force stretched over inhospitable and harsh mountain ranges for over 887 km, FWO succeeded in carving out the “Eighth Wonder” of the World in 1978.13Today, FWO is a vibrant construction entity of 45,000 professionals equipped with over 5,000 pieces of state of the art construction machinery, stretched all across Pakistan besides venturing overseas.

Maintenance of KKH and Construction of Mansehra Naran-Chilas Road

In 1958, a modest project was initiated to provide a road link between Swat and Gilgit which grew up into a mega highway project when, in 1966.FWO is developing Jalkhad-Babusar-Chilas Road, which has almost been completed. This road is a continuation of the Mansehra-Naran-Jalkhad Road, which is complete and takes in a large volume of traffic during summers.

By end of 2016 would effectively link Gwadar Deep Sea Port with Afghanistan and China. FWO is according top priority to these routes keeping in view the supreme national interest and accordingly almost 60% of its resources have been employed for construction of these road projects. The M-8 Motorway reflects the vision of a progressive Baluchistan.

It is the first highway of the province, which shall be converted into a Motorway connecting Gwadar with the Indus Highway. Eventual alignment of this road will traverse along Gwadar, Turbat, Hoshab, Awaran, Khuzdar and Rattodero. However, the contract agreements were terminated in October 2010 due to adverse security situation as all the contractors expressed their inability CPEC 146 to work.

In 2013, fresh bids were called but only FWO submitted its proposal and the work were awarded to FWO. FWO has undertaken construction of Gwadar–TurbatHoshab and Khuzdar-Shahdadkot segments. The road is sponsored by NHA from PSDP Funding. Construction of Khuzdar-Shahdadkot link is also underway. The Highway is also known as the Gwadar-Quetta link.

According to the scope of work, length of highway is 448 km, carriageway width is 7.3 meters with shoulders of 2.5 meters. Moreover, 15 bridges are to be constructed. The construction work has been divided into four sections: the Hoshab-Panjgur (138 km), Panjgur-Nag (130 km), NagBasima (91 km) and Basima-Surab Section (89 km)

FWO is currently undertaking repair and modernization of Lahore-Islamabad Motorway (M-2) whereas the 4 lane Karachi Hyderabad Super Highway is being upgraded into a 6 lane motorway in its pursuits along the Eastern Route.

Lahore-Islamabad Motorway

Under the Concession Agreement, M-2 has been handed over to FWO in 2014 for concession period of 20 years. Project was inaugurated on 15 December 2014 and work commenced during January 2015 after largest financial close in the history of transportation and communication sector in Pakistan.

Conversion of the existing 4 lane Karachi–Hyderabad Superhighway into a 6 lane Motorway (M-9) has been entrusted to the FWO in 2015 for a concession period of 25 years. FWO is also in the process of bidding for different sections of the Karachi Lahore Motorway.

FWO is working in close harmony with Pakistan Railways for development of ‘Pak-China Dedicated Freight Corridor.’ The Corridor will extend from Karachi and Gwadar to Kashghar and eventually link the regional rail networks in the neighborhood. Oil City and White Oil Pipeline: To meet the strategic needs of Pakistan, besides the huge contemplated and projected requirements of the CPEC, an Oil Village with a capacity of 50,000 MT on Build-Own-Operate (BOO) basis and connecting it with White Oil Pipeline is being planned. Another mega initiative is Gwadar-Kashgar Cross Country Oil Pipeline with 400,000 MT storage facilities.

Economic Development Plan along Major Routes: Under this plan, a number of smart cities, industrial zones, container terminals, grain and fuel storage facilities, warehouses, dry ports and thermal power plants are planned.

CPEC: Infrastructure Development 155 along Lahore-Islamabad Motorway, Karachi-Hyderabad Motorway and Dedicated Freight Corridor.

Energy and Water Sector Projects: In order to develop energy and water sector in Pakistan, FWO has planned to undertake and develop mega dam projects as well as medium size Hydro Power Projects. The last but not the least is the capacity issue, in the implementation phase and addressed by raising and training a huge technical and skilled work force needed. National University of Technology and Skills Development (NUTECH) has been conceptualized. Proposed university to introduce the concept of basic to higher education CPEC 156 in the field of technology for the first time in Pakistan, though already adopted in the advanced countries.

The CPEC is a prized opportunity for Pakistan to realize its strategic and economic potential and is regarded as a “Game Changer” for Pakistan and the region. The benefits of the project will materialize gradually and the require determination from Pakistan and China to achieve their cherished goals in the best possible manner. FWO, in its capacity, has been striving to play its essential part rather leading the implementation of the CPEC.

First published in our partner Mehr News Agency

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Why India won’t intervene militarily in Maldives

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An Indian Ocean archipelago of 1,192 islands, the Maldives is a tourist paradise. The Maldives is a low-lying country that is expected to be among the first in the world to go under water as a result of climate change. While it may take a few more decades for rising sea levels to wreak havoc on the archipelago, there are more immediate and pressing problems tearing the country apart.

Tourism is the backbone of the country’s economy, and tour operators have reported hundreds of daily cancellations since the state of emergency was imposed on February 5. Following the state of emergency, Maldives has been in a tensed state of existence in as the archipelago is facing a sort of turmoil, ransacking its tourism based economy.

Crisis

The current crisis was the result of a Supreme Court ruling on February 1, overturning the convictions of Yameen’s rivals. In addition to ordering the government to release the nine convicted opposition leaders, the apex court called for reinstating 12 parliamentarians who were stripped of their seats last year when they left Yameen’s Progressive Party of Maldives to join the opposition.

Two weeks after the government of the Maldives declared a state of emergency amid rising political tension, on February 20th Parliament approved a 30-day extension that, among other grave consequences, may result in serious damages to the economy, scaring away international visitors. On February 20, President Abdulla Yameen Abdul Gayoom requested to extend the Maldives state of emergency for a total of 45 days. The Maldives government and the Ministry of Tourism have emphasized their commitment to safety for civilians and tourists alike.

The emergency “shall only apply to those alleged to have carried out illegal activities — it shall not apply to otherwise law-abiding residents of, or visitors to, the Maldives,” Yameen’s office said in a statement.

The opposition Jumhooree Party says the approval of the extension is illegal, and urged Yameen to lift the state of emergency in order to restore normalcy. “Despite the State of Emergency, the country is functioning as normal as possible,” a spokesperson for the Ministry of Tourism told TPG Tuesday before the extension was approved. “Schools and government offices are in operation and we do not foresee any threats to the public or tourists. We too are continuing with the promotional activities of the destination.”

Since Yameen became president in a controversial election in 2013, he has systematically crushed dissidence within his party and removed rivals from the political arena.

For instance, MDP leader and former Maldivian president Mohamed Nasheed, the archipelago’s first democratically elected leader, was convicted on terrorism charges in 2015 and sentenced to 13 years in jail. While Nasheed has been living in self-exile in Britain since 2016, several other opposition leaders, including a former defense minister in the Nasheed government, Mohamed Nazim; Yameen’s once “trusted” vice-president, Ahmed Adheeb; and leader of the opposition Adhaalath Party, Sheikh Imran Abdulla, are in jail on long prison terms.

The opposition Maldivian Democratic Party (MDP) calls on neighboring India to militarily intervene to end the crisis, and let Nasheed become the president.

According to reports in the Indian media, the government has ruled out the military option for now, although it has activated its standing operating procedure for the Maldives by keeping troops ready for deployment there at short notice, should the need arise.

But India is said to be working with a group of countries, including the United States and Saudi Arabia, to pressure the government through imposition of sanctions. However, India has traditionally opposed the sanctions option to influence regime behavior, as sanctions affects ordinary people rather than the ruling elite.

Relations between India and the Maldives have been strong for decades; India played a major role in building the Maldives’ economy and military. It was India’s support that kept the authoritarian Gayoom in power for three decades.

However, bilateral ties have been fraying since Nasheed’s exit from power in 2012. That year, the Maldivian government abruptly terminated a $500 million contract awarded to India’s GMR Infrastructure for developing an airport in Male. Bilateral ties have deteriorated since then. Yameen’s “authoritarian governance” has irked India, but it is his tight embrace of China that has raised hackles in Delhi.

No invitation for invasion

A country could decide to send military forces to neighboring or any other country only on the request form that nation concerned. Otherwise the intervention becomes totally illegal and amounts to invasion. USA led NATO have been occupying many countries in Middle East and Afghanistan after invading them on false justifications.

Anyone who closely follows Indian state behavior abroad would quickly endorse the argument that India would not intervene in Maldives citing any reason.

In order to decide to sent troops to nearby Maldives, India must have got a request from the government of Maldives but that government has not sought it. In 1988 when India intervened in Maldives it was on the request received from the then President Gayoom.

When an external government is engaged in dealing with an emergency situation, naturally that power should be given huge service charges. Without any request from Maldivian government of Yameen, India won’t get any service charges. Though the exiled opposition leader Nasheed might be willing to pay the money to India as he has made the request to New Delhi, but India cannot respond to non-government actors.

This step alone can easily do away with any suggestion to India for intervention in Maldives.

The government of Maldives has not asked for Indian military to help bring peace and normalcy back to the island nation. India cannot attack Maldives on the suggestion by the opposition leader who now lives in Srilanka.

Claiming to be a ‘terror victim’, India would not like to be seen as an aggressor as no amount of justification can  make New Delhi “innocent” although it has got that look. .

China factor

But there are some more important reasons that deny India any chance to send troops to Maldives which, in the absence of a request from the government,   would mean to remove the President and government from power.

Today, archipelago Maldives is not alone, though insignificant for non-tourists. China is fast becoming an economic ally of Maldives and might soon have its own military bases in the island nations as well.

Chinese nexus is the prime strength Maldives would operate on.

Unlike China, USA can only bully small nations but cannot spend money on them, does not invest there to help their economies flourish. Already, Beijing, knowing the Indian strategic community’s desire for a military showcase byIndia in Maldives, has expressed its opposition to outside intervention from India.

Unlike USA, India cannot attack Maldives on the suggestion of USA or Israel or Opposition leader Nasheed and if that at all happens India would possibly be in a long term trouble.

In 2014, when Chinese President Xi Jinping visited Maldives, Yameen handed over the airport project to a state-run Chinese company. The two sides signed a string of deals during that visit that saw Beijing participate in a big way in infrastructure building in Maldives. Maldives also became an enthusiastic participant in the Maritime Belt of China’s Belt and Road Initiative.

Then in December last year, the Maldives and China signed a Free Trade Agreement, much to India’s concern. Delhi is worried about Beijing’s mounting influence over Maldives and the strategic implications for India.

China’s growing presence in the Maldives is a serious concern to India given the latter’s geographic proximity to the Indian coastline. The Maldives also sit near international sea lanes through which India’s oil imports traverse. India’s security would be threatened should the Chinese set up a naval base in the Maldives. These concerns are not without substance; in August 2017, three Chinese naval vessels docked at the Maldives’ capital, Male, setting off alarm bells in Delhi.

India’s vulnerability

India is watching the unfolding crisis in the Maldives with concern. It is mulling different options. Not doing anything is not an option given India’s stakes in a stable Maldives.

A seemingly busy India, whose PM is on a perpetual foreign tours as India’s foreign policy with very little time for the people and keeps mum on all major anti-people events, promotes rampant corruption and the powerful lords  loot the nation and its resources for private use, steel cash from nationalized banks, illegal mining and land grabbing.

IPL Modi, PNB looter Nirav Modi- both have escaped from India and are now abroad thanks to timely help and aid from agencies of Indian regime, Kothari, et al are just the tip of iceberg in Indian sage of misappropriation of state resources while the intelligence and media lords are terribly busy blasting fake news about Pakistan and Muslims in order rot keep the fanatic sections of India.

The Indian government has said it is “disturbed” by the declaration of emergency in the Maldives and “the suspension of the Maldivian people’s constitutional rights.” It is “carefully monitoring the situation,” it said. Earlier, its Ministry of External Affairs issued a travel advisory to its citizens traveling to Maldives.

Sections in India are in favor of an Indian military intervention in the Maldives. Some argue that it does not behoove a rising power with big ambitions like India to shrink away from acting robustly to defend its interests in the region.

A section of the BJP leadership has described the current crisis in the Maldives as an “opportunity” for India “to stake its claim to being a global player.” It is “imperative” for India to intervene in the Maldives, they argue,  “since any global role is always dependent on a country’s performance in the neighborhood first. Those who want to see India a superpower as soon as possible with a magic touch, say that “time is ripe for a decisive Indian intervention in the Maldives.”  Such intervention by India would have the support of countries like the USA, Israel and UK, which, they reason, would be keen to see the pro-China Yameen removed from power. “This could be used to silence the Kashmiris who fancy for sovereignty”.

If India does decide in favor of military intervention, this will not be the first time it has done so in the Maldives. In 1988, India sent in a small contingent of troops to avert a coup attempt against Gayoom. But the circumstances of that intervention were different from what exists today. In 1988, President Gayoom invited India to intervene. Yameen is unlikely to do so now. Importantly as well, 30 years ago the coup plotters were just a small group of mercenaries. A military intervention today could leave Indian troops stuck in a Maldivian quagmire.

Yameen wins power struggle

Yameen, like most rulers today, is determined to cling to power. Not only has Yameen ignored the court order, but he went on to declare an emergency and had the judges who handed out the ruling arrested. Reinstating the 12 parliamentarians would reduce his government to a minority. That would enable parliament to oust him in a no-confidence vote.

Besides, Yameen seems apprehensive that allowing Nasheed to return to the Maldives and freeing the other opposition leaders would galvanize the opposition and boost mass protests against his iron-fisted rule. Presidential elections are due later this year and Yameen fears that he will be defeated by a strong opposition campaign.

With the proclamation of a state of emergency, Yameen has prevented parliament from meeting. The emergency will be in place for 15 days, during which he can be expected to pack the judiciary with loyal judges. He is likely to engineer defections from the opposition. He could extend the state of emergency as well.

Yameen has already appointed new judges, who have since annulled the court order releasing the opposition politicians. Former president and opposition leader Maumoon Abdul Gayoom, who is Yameen’s half-brother, has been detained and Yameen has fired two police chiefs over three days.

With Yameen tightening his grip, Nasheed has called on India “to send an envoy, backed by its military to free the judges and the political detainees.” He has asked for India’s “physical presence” in the Maldives.

China has warned India against any military intervention in Maldives.

Observation

China is closely watching events in the Maldives. The archipelago is a popular destination for Chinese tourists; in light of the current uncertainty, Beijing has advised its citizens to postpone travel to the Maldives. Having invested heavily in the Maldives, China is concerned about the safety of its investments, projects, and personnel. It has asked the Maldivian government to “to take necessary measures to earnestly protect the security of the Chinese enterprises, situations and personnel.”

Unlike India, China has leverage with the Maldivian government. Yameen is likely to listen to China. But Beijing would not want to see him go.

China is opposed to India meddling in Maldives and has made this more than clear. An editorial in China’s state-run Global Times chided India for openly intervening in its neighbors’ domestic affairs. There is “no justification” for India “to intervene in Male’s affairs,” it observed.

Any military showcase by India could also prove counterproductive to India’s long-term interests. It would push Yameen closer to the Chinese, for instance. Besides, it would boost perception of India as a “big brother” and a “bully” in the region. Undemocratic forces in India’s neighboring countries have usually stoked anti-India sentiment among the masses by stressing such perceptions. This can be expected to happen in the Maldives too.

Importantly, an Indian military intervention is unlikely to benefit democratic forces in the Maldives in the long run as a democratic government, should one come to power in the archipelago following an intervention, would be seen as “made in India” with the USA acting as a “midwife.” Such a government would lack legitimacy in the eyes of many Maldivian people.

It does seem that the Sino-Indian contest for influence in the archipelago is as fierce as the ongoing tussle between Yameen and the Maldivian opposition.

Thus any suggestion for Indian military intervention in Maldives is ruled out.

India could perhaps act as a facilitator or even a mediator in a possible dialogue between Yameen’s Maldivian government and the opposition. But will Yameen welcome an Indian role against the Chinese wish? Moreover, he has reportedly defied Indian requests relating to the current crisis. India cannot have privileged the leverage to influence the decisions of Maldivian President.

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Into the Sea: Nepal in International Waters

Sisir Devkota

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A visit to the only dry port of Nepal will immediately captivate busy scenes with hundreds of trucks, some railway carriages and huge Maersk containers at play. Trains from the Port of Kolkata in India carry tons of Nepal’s exports every week. Every year, Nepal is fined millions of rupees for overstaying its containers at the designated dock in Haldiya Port of Kolkata. Nepal pays for spaces inside Indian ships to carry out its exports via the sea. This is the closest Nepal has come in exploiting economic opportunities through sea waters. Prime Minister KP Oli went one step further and presented an idea of steering Nepal’s own fleets in the vast international sea space. While his idea of Nepal affording its own ship was mocked; on the contrary, he was right. The idea is practical but herculean.

To start with, Nepal has a landlocked right to use international waters via a third country for economic purposes only. Law of the Sea conferences held during the 80’s, guarantees Nepal’s right to use the exclusive economic zone all around the globe. Article 69 of the Law of the Sea convention states that Nepal could both use sea as a trading route and exploit the exclusive economic zone of its sea facing neighbors. Nepal’s closest neighbor, India has a wide exclusive economic zone which consists of 7500 km long coastline. The article also allows landlocked nations to use docking facilities of the nearest coastal nation to run its fleets. An exclusive economic zone in sea waters is designated after a coastal nation’s eleven mile parallel water boundary ends; which is also a part of the coastal nations territory. Simply put, Nepali fleets can dock at India’s port, sail eleven miles further into international waters-carry out fishing and other activities, sail back to the Indian coast and transfer its catches back to Nepal.

Floating Challenges

Before ships can carry the triangular flag into sea waters, Nepal will need treaties in place to use coastal nation’s water to take off and build shipment facilities. Law of the Sea convention clearly mentions that the right to use another nation’s coast will depend solely on the will of the hosting coastal nation. Does Nepal have the political will to communicate and forge a comprehensive sea transit agreement with its coastal neighbors? Nepal’s chance of securing fleets in and around the Indian Ocean will depend on whether it can convince nations like India of mutual benefits and cancel any apprehension regarding its security that might be compromised via Nepal’s sea activity. The convention itself is one among the most controversial international agreements where deteriorating marine ecosystems, sovereignty issues and maritime crimes are at its core. Majority of global and environmental problems persist in the high seas; ranging from territorial acquisitions to resource drilling offences. Nepal is welcome into the high seas, but does it comprehend the sensitivity that clouts sea horizons? Nepal needs a diplomatic strategy, but lacking experience, Nepal will need to develop institutional capacities to materialize the oceanic dream. Secondly, the cost of operating such a national project will be dreadfully expensive. Does the Nepali treasury boast finances for a leapfrogging adventure?

How is it possible?

The good news is that many landlocked nations operate in international waters. Switzerland, as an example might not assure the Nepali case, but Ethiopia exercising its sea rights via Djibouti’s port could be inspiring. Before Nepal can start ordering its fleets, it will need to design its own political and diplomatic strategy. Nepal’s best rationale would lie in working together with its neighbors. The South Asian network of nations could finally come into use. Along with Nepal, Bhutan is another landlocked nation where possible alliances await. If India’s coasts are unapproachable, Nepal and Bhutan could vie for Bangladeshi coastlines to experience sea trading. Maldivian and Pakistani waters are geographically and economically inaccessible but Sri Lanka lies deep down the South Asian continent. If Nepal and Bhutan can satisfy Sri Lankan interests, the landlocked union could not only skim through thousands of nautical miles around the Bay of Bengal without entering Indian water space; but also neutralize the hegemonic status of India in the region. If such a multinational agreement can be sought; SAARC- the passive regional body will not only gain political prowess but other areas of regional development will also kickstart.

Most importantly, a transit route (such as the Rohanpur-Singhdabad transit route) from Bangladesh to Nepal and Bhutan will need to be constructed well before ships start running in the Indian Ocean. In doing so, Nepal will not only tranquilize Nepal-Bhutan relations but also exercise leadership role in South Asia. A regional agreement will flourish trade but will also make landlocked Nepal’s agenda of sailing through other regions of international sea strong and plausible. A landlocked union with Bhutan will trim the costs than that of which Nepal will be spending alone. Such regional compliance would also encourage international financial institutions to fund Nepal’s sea project. Apart from political leverages, Nepal’s economy would scale new heights with decreasing price of paramount goods and services. Flourishing exports and increased tourism opportunities would be Nepal’s grandiloquence. Nepal’s main challenge lies in assuring its neighbors on how its idea would be mutually beneficial. Nepal’s work starts here. Nepal needs to put together a cunning diplomatic show.

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The concept of segmentation does not imply structural dimensions per se. Segmentation, as it is technically understood, involves a unit-whole...

Economy23 hours ago

The War for Raw Materials

The war for raw materials amounts to a reshuffling of the power relations among Western nations, on one hand, and...

Newsdesk23 hours ago

ADB, B.Grimm Power Expand Support for Renewable Energy in ASEAN

The Asian Development Bank (ADB) today signed a loan equivalent of up with $235 million to B.Grimm Power Public Company Limited (B.Grimm...

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