pdate on 10 December 2015

China Railway Construction Corporation said its unit, China Railway 20th Bureau Group
Co, and Zahir Khan and Brothers Engineers and Constructors have secured a $1.46
billion contract to build the 1,152km section of Karachi-Lahore motorway.
The Economic Times.
Update on 27 July 2015
Prime Minister Nawaz Sharif said the Peshawar-Karachi motorway should be completed
by 2017, energy projects under CPEC to be fast-tracked and Gwadar International
Airport to be completed in the shortest possible time.
Update on 10 July 2015
Pakistan becomes full-time member of Shanghai Cooperation Organisation (SCO).
Update on 28 May 2015
Western alignment of CPEC from Khunjrab to Gwadar to be completed first on priority
basis. Prime Minister Nawaz Sharif gains support of all political parties on CPEC. The
route is via Hasan Abdal, Mianwali, D.I. Khan, Zhob and all the way to Gwadar.
Update on 22 April 2015
Chinese President Xi Jinping concluded his Pakistan visit and signed agreements worth
an unprecedented US$46 billion.
VIDEO: CPEC by China TV
Video Player

Update on 17 April 2015

A Special Security Division (SSD) is being set up for the China-Pakistan Economic
Corridor, consisting of nine battalions of the army and six battalions of the civilian
forces. $250 million sanctioned for army force to guard Chinese personnel working on
CPEC $60 million annual budget.
See also: Economic Corridor gets 4-layer security as Gwadar to be made
weapon-free

Update on 11 March 2015

Prime Minister Nawaz Sharif inaugurated the first phase of the Karachi-Lahore (M-9)
Motorway, which will cost Rs 36 billion. M-9 will facilitate people commuting between
Karachi and major cities including Sukkur, Badin, Ghotki, Rohri, Dadu, Pannu Aqil,
Ubaro, Sadiqabad, Rahim Yar Khan, Zahir Pir, Jalalpur Peerwala, Abdul Hakim, Mamu
Kanjan and Nankana Sahib.

Industrial parks and special economic zones are part of the China-Pakistan Economic
Corridor (CPEC) memoranda of understanding recently agreed between the leaders of
the two countries.

The key pre-requisite for the establishment of these zones are resolution of the energy
crisis and building of a competitive infrastructure in Pakistan.

China-Pakistan Economic Corridor is a 15-year plan and will be completed in

four phases:
2018 Early Harvest
2020 Short Term
2025 Medium Term
2030 Long Term

Energy and infrastructure

The first phase of the economic corridor is focused on $45.6 billion worth of energy and
infrastructure projects. Chinas state-owned banks will finance Chinese companies to
fund, build and operate $45.6 billion worth of energy and infrastructure projects in
Pakistan over the next six years, according to Reuters.
Major Chinese companies investing in Pakistans energy sector will include Chinas
Three Gorges Corp which built the worlds biggest hydro power project, and China
Power International Development Ltd.
Under the agreement signed by Chinese and Pakistani leaders at a Beijing summit
recently, $15.5 billion worth of coal, wind, solar and hydro energy projects will come
online by 2017 and add 10,400 megawatts of energy to the national grid.
An additional 6,120 megawatts will be added to the national grid at a cost of $18.2
billion by 2021.

The transport and communication infrastructure roads, railways, cable, and oil and
gas pipelines will stretch 2,700 kilometers from Gwadar on the Arabian Sea to the
Khunjerab Pass at the China-Pakistan border in the Karakorams.
Starting this year, the Chinese companies will invest an average of over $7 billion a year
until 2021, a figure exceeding the previous record of $5.5 billion foreign direct
investment in 2007 in Pakistan.

Special economic zones

Beyond the initial phase, there are plans to establish special economic zones in the
Corridor where Chinese companies will locate factories.
Extensive manufacturing collaboration between the two neighbours will include a wide
range of products from cheap toys and textiles to consumer electronics and supersonic
fighter planes.
The basic idea of an industrial corridor is to develop a sound industrial base, served by
competitive infrastructure as a prerequisite for attracting investments into export
oriented industries and manufacturing.
Such industries have helped a succession of countries like Indonesia, Japan, Hong
Kong, Malaysia, South Korea, Taiwan, China and now even Vietnam rise from low-cost
manufacturing base to more advanced, high-end exports.
As a countrys labour gets too expensive to be used to produce low-value products,
some poorer country takes over and starts the climb to prosperity.
Once completed, the China-Pakistan Economic Corridor with a sound industrial base
and competitive infrastructure combined with low labour costs is expected to draw
growing FDI from manufacturers in many other countries looking for a low-cost location
to build products for exports to rich OECD nations.

WHAT IS GOOD GOVERNANCE?

Good governance is about the processes for making and
implementing decisions. Its not about making correct decisions,
but about the best possible process for making those decisions.
Good decision-making processes, and therefore good governance,
share several characteristics. All have a positive effect on various
aspects of local government including consultation policies and
practices, meeting procedures, service quality protocols,
councillor and officer conduct, role clarification and good working
relationships.
WHAT ARE THE MAIN CHARACTERISTICS OF GOOD GOVERNANCE?
Good governance is accountable
Accountability is a fundamental requirement of good governance. Local government has an obligation to report,
explain and be answerable for the consequences of decisions it has made on behalf of the community it
represents.
Good governance is transparent
People should be able to follow and understand the decision-making process. This means that they will be able
to clearly see how and why a decision was made what information, advice and consultation council
considered, and which legislative requirements (when relevant) council followed.
Good governance follows the rule of law
This means that decisions are consistent with relevant legislation or common law and are within the powers of
council. In the case of Victorian local government, relevant legislation includes the Local Government Act
1989 and other legislation such as the Public Health and Wellbeing Act 2008, and the Equal Opportunity Act
2010.
Good governance is responsive
Local government should always try to serve the needs of the entire community while balancing competing
interests in a timely, appropriate and responsive manner.

Good governance is equitable and inclusive

A communitys wellbeing results from all of its members feeling their interests have been considered by council
in the decision-making process. This means that all groups, particularly the most vulnerable, should have
opportunities to participate in the process.
Good governance is effective and efficient
Local government should implement decisions and follow processes that make the best use of the available
people, resources and time to ensure the best possible results for their community.
Good governance is participatory
Anyone affected by or interested in a decision should have the opportunity to participate in the process for
making that decision. This can happen in several ways community members may be provided with
information, asked for their opinion, given the opportunity to make recommendations or, in some cases, be part
of the actual decision-making process.
It is important to remember that under the Local Government Act 1989 the council is required to either
make decisions or delegate the decision-making power to officers or Special Committees. For more information
see How decisions are made.

Participation
All men and women should have a voice in decision-making, either directly or
through legitimate intermediate institutions that represent their interests. Such
broad participation is built on freedom of association and speech, as well as
capacities to participate constructively.
Rule of law
Legal frameworks should be fair and enforced impartially, particularly the laws
on human rights.
Transparency
Transparency is built on the free flow of information. Processes, institutions
and information are directly accessible to those concerned with them, and
enough information is provided to understand and monitor them.
Responsiveness
Institutions and processes try to serve all stakeholders.

 Consensus orientation
Good governance mediates differing interests to reach a broad consensus on
what is in the best interests of the group and,. where possible, on policies and
procedures.
Equity
All men and women have opportunities to improve or maintain their wellbeing.
Effectiveness and efficiency
Processes and institutions produce results that meet needs while making the
best use of resources.
Accountability
Decision-makers in government, the private sector and civil society
organisations are accountable to the public, as well as to institutional
stakeholders. This accountability differs depending on the organisations and
whether the decision is internal or external to an organisation.
Strategic vision
Leaders and the public have a broad and long-term perspective on good
governance and human development, along with a sense of what is needed for
such development. There is also an understanding of the historical, cultural and
social complexities in which that perspective is grounded.

Eight Elements of Good Governance

Good governance has 8 major characteristics. It is participatory, consensus oriented,
accountable, transparent, responsive, effective and efficient, equitable and inclusive, and
follows the rule of law. Good governance is responsive to the present and future needs of the
organization, exercises prudence in policy-setting and decision-making, and that the best
interests of all stakeholders are taken into account.
1. Rule of Law
Good governance requires fair legal frameworks that are enforced by an impartial regulatory
body, for the full protection of stakeholders.
2. Transparency
Transparency means that information should be provided in easily understandable forms and
media; that it should be freely available and directly accessible to those who will be affected

by governance policies and practices, as well as the outcomes resulting therefrom; and that
any decisions taken and their enforcement are in compliance with established rules and
regulations.
3. Responsiveness
Good governance requires that organizations and their processes are designed to serve the
best interests of stakeholders within a reasonable timeframe.
4. Consensus Oriented
Good governance requires consultation to understand the different interests of stakeholders
in order to reach a broad consensus of what is in the best interest of the entire stakeholder
group and how this can be achieved in a sustainable and prudent manner.
5. Equity and Inclusiveness
The organization that provides the opportunity for its stakeholders to maintain, enhance, or
generally improve their well-being provides the most compelling message regarding its
reason for existence and value to society.
6. Effectiveness and Efficiency
Good governance means that the processes implemented by the organization to produce
favorable results meet the needs of its stakeholders, while making the best use of resources
human, technological, financial, natural and environmental at its disposal.
7. Accountability
Accountability is a key tenet of good governance. Who is accountable for what should be
documented in policy statements. In general, an organization is accountable to those who
will be affected by its decisions or actions as well as the applicable rules of law.
8. Participation
Participation by both men and women, either directly or through legitimate representatives,
is a key cornerstone of good governance. Participation needs to be informed and organized,
including freedom of expression and assiduous concern for the best interests of the
organization and society in general.