ISLAMABAD: The Ministry of Foreign Affairs (MoFA) has asked Power Division to develop concrete measures to address Chinese concerns, especially those related to the delayed IPP payments, Gwadar power plant and return on investment to the stakeholders in CPEC projects, well informed sources told Business Recorder.
The overdue amount of CPEC power projects has reached Rs 526 billion, mainly due to delay in release of subsidies for the last quarter of current fiscal year, low collection due to winter season and another hit of Rs 100 billion arrears on account of Karot hydropower project and Thar Block-1.
The Power Division is expecting release of Tariff Differential Subsidies (TDS) of about Rs 100 billion to be paid to the power projects. CPPA-G will make efforts to maintain the payables level of Rs 300 billion for CEPC IPPs.
Payment to Chinese IPPs: Power Division allowed to draw Rs4bn from PERA
Finance Division has also allowed Power Division to draw Rs 4 billion from Pakistan Energy Revolving Account (PERA) for the month of April 2024 for onward exclusive payments to CPEC-IPPs after completion of all codal, financial, procedural and legal formalities as per laid down rules and regulations.
The issue of non-payment has been discussed during inter-ministerial meetings and with representatives of Chinese CPEC IPPs, presided over by Minister for Planning, Development and Special Initiatives, Ahsan Iqbal.
According to Ministry of Foreign Office, Pakistan’s Mission in Beijing has strongly recommended an inter-ministerial meeting be convened, inviting representatives from the Foreign Office, Finance and Planning divisions as well as NEPRA (National Electric Power Regulatory Authority) to prepare for 8th Energy Planning Expert Panel (EPEP) meeting, besides resolution of other issues of CPEC IPPs.
The sources said Chinese CPEC IPPs, in a meeting with Minister for Planning, Development and Special Initiatives, lodged complaints against PPIB and Central Power Purchasing Agency-Guaranteed (CPPA-G) for not extending required cooperation in resolution of administrative and financial issues.
Secretary Ministry of Planning, Development and Special Initiatives, Awais Manzur Sumra, in a letter to all the Secretaries noted that a high level visit to China is expected in the near future (without giving dates), MoPD&SI is making necessary preparations to develop a comprehensive agenda for the visit, including potential agreements or Memorandum of Understanding (MoU) to be signed/announced as well as projects to be proposed to the Chinese side.
Secretary MoPD&SI maintained that the visit presents an opportunity to enhance cooperation in various fields, to deepen ties with China and explore new avenues of collaboration. In the light of the significance of this visit, it is imperative that all concerned make necessary preparations to ensure its success.
The sources said, during a meeting on April 26, 2024, all conveners of the Joint Working Groups (JWGs) under CPEC presented their respective agendas and deliverables/big ticket project proposals for the 13th JCC meeting and upcoming high-level visit to China.
While taking briefs, Minister for Planning, Development and Special Initiatives and SAPM on Foreign Affairs expressed concerns on deliverables and directed conveners to hold their JWGs preparatory meetings of Pakistan side to finalize concrete and firm up deliverables for the high-level visit to China.
Copyright Business Recorder, 2024
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