ISLAMABAD: Port Qasim Electric Power Company Limited (PQEPC) is actively exploring various options to address its financial difficulties, including debt restructuring, loan extensions, and converting its 1,320 MW coal-fired power plant to Thar coal. This comes amid concerns from the former Prime Minister of Qatar, Sheikh Hamad Bin Jasim Bin Jaber Al Thani, regarding unpaid dues to the company, according to well-informed sources.
The company has held multiple meetings in Islamabad to discuss its financial woes, focusing on ways to alleviate the burden of debt and ensure timely payments. Discussions also touched on the technical and financial feasibility of converting the plant to domestic coal, reducing reliance on imported fuel.
The Finance Ministry is also involved, as the delay in payments to CPEC-related IPPs, including PQEPC, has become a significant concern. With payables to CPEC IPPs totaling Rs. 477 billion as of June 2024, PQEPC’s receivables alone amount to Rs. 82 billion. Despite previous attempts to clear these dues, including the release of Rs. 158 billion before the Prime Minister’s visit to China, the situation remains unresolved.
Sheikh Al Thani has formally requested the Prime Minister’s intervention to secure the overdue payment of $450 million, highlighting the impact of these delays on the project’s financial health. PQEPC has urged the government to clear these payments to avoid potential loan defaults and breaches of the GoP Sovereign Guarantee.
Story by Mushtaq Ghumman
