The Private Power & Infrastructure Board (PPIB) has called upon the State Bank of Pakistan (SBP) to clear the outstanding payments of $789 million owed to power projects, including those under the China Pakistan Economic Corridor (CPEC), to ensure the seamless progress and operations of these projects. Sources close to the Managing Director (MD) of PPIB disclosed this information to Business Recorder.
In a letter addressed to the Governor of SBP, Jameel Ahmed, MD PPIB Shah Jahan Mirza referred to previous communications, highlighting the urgency of resolving the issue. The majority of letters received from Independent Power Producers (IPPs) emphasized the challenges they face due to delays in SBP’s approval for converting PKR to USD. These delays hinder their ability to meet financial commitments to project lenders, coal suppliers, operation and maintenance (O&M) contractors, insurers, and for importing spare parts.
Mirza emphasized the necessity of resolving this issue promptly to prevent unnecessary delays in project development and operations, as IPPs have been expressing concerns and seeking PPIB’s assistance in facilitating discussions with SBP.
The outstanding dues shared by IPPs with PPIB include amounts owed by various projects, notably those under CPEC:
China Hub Power: $67,81,855; RMB 7428,378
Port Qasim Electric Power Ltd: $130,263,932
Huaneng Shandong (Sahiwal): $364,820,973; RMB 96,571,421
Thar Energy Limited: $3,253,790
Thal Nova Power Thar Limited: $79,896
Lucky Electric Limited: $58,400; GBP 41,657
Attock Power Gen Limited: Euro 2,141,442
Rousch Power Limited: $7,533,497
Engro Energy: $10,069
PMLTC: $117,439,593
The total pending amount in various currencies amounts to $751,917,750, GBP 41,657, Euros 2,215,687, and RMB 104,101,199, with a cumulative outstanding amount of $768,826,386.
In a related development, the Chief Executive Officer of China Power Hub Generation Company Private Limited (CPHGC), Chen Yonghua, highlighted the efforts made by the company to secure necessary foreign currency for fulfilling its financial commitments towards lenders, fuel suppliers, and O&M contractors. The company has sought assistance from PPIB in liaising with SBP to expedite the approval and arrangement of foreign currency for these payments.
