ISLAMABAD: The National Power Parks Management Company (Private) Limited (NPPMCL) has urged the State Bank of Pakistan (SBP) to expedite the remittance of $4.7 million to General Electric (GE) for Long-Term Service Agreements (LTSAs) tied to the operation and maintenance of two RLNG-based power plants.
In a letter addressed to the SBP Governor, NPPMCL CEO Akram Kamal emphasized the critical nature of the LTSAs for the 1223 MW Balloki power plant in Kasur and the 1230 MW Haveli Bahadur Shah plant in Jhang. These agreements, secured through international competitive bidding, are essential to the plants’ operational efficiency.
Delay in Foreign Exchange Approvals
NPPMCL submitted remittance requests through its authorized dealer, United Bank Limited (UBL), on October 9, 2024. Although the Finance Division issued a No Objection Certificate (NOC) on October 17, 2024, foreign exchange restrictions have delayed SBP’s approval, preventing UBL from processing the payments.
Operational Concerns
GE has raised concerns about sustaining maintenance operations due to the payment delay, which jeopardizes the reliability of both plants. NPPMCL warned that any disruption could significantly affect Pakistan’s electricity supply.
Appeal to Resolve Urgently
The CEO called on the SBP to direct its Foreign Exchange Operations Department to approve the remittance without further delays, stressing the need to maintain uninterrupted power generation.
The resolution of this issue, NPPMCL highlighted, is crucial for ensuring a stable electricity supply and fulfilling the operational commitments under the Implementation Agreements signed with the Government of Pakistan.
Story by Mushtaq Ghumman
