Beijing: Pakistan is expected to conclude reinsurance deals with a Chinese consortium for the strategically important Neelam-Jhelum hydro-electric project being built by it at a cost of $1.5 billion in Pakistan- Occupied Kashmir (POK), over which India has voiced its concerns.
“The talks are in very advanced stages and the deal is expected to be closed by April end or early May,” a senior executive of Adamjee Insurance Company, Pakistan-based insurer, who is tying up the deals, told PTI.
A consortium consisting of China’s Gezhouba Water and Power Company and China National Machinery and Equipment Import and Export Corporation (CMEC) were awarded contracts by Pakistan in December last year to build the Rs7,873 crore project in eight years.
Chinese insurance companies PICC, Ping An, China Pacific and AIG (China) have experience in insuring the works carried out by the Chinese contractors in China-based domestic projects, Zersis Rustom Birdie, General Manager (Development) of the Karachi-based insurance company, said.
“We feel they (Chinese firms) are better experienced than European-based reinsurance companies to cover the works carried out by Chinese contractors in Pakistan,” he said.
Asked if the premiums from the international reinsurance companies were high because of war and terrorism-related risks, Birdie did not comment directly but said European firms were tough on terms for such a project as they did not have Chinese domestic experience directly and used PICC or Ping An in the past.