The Private Power Infrastructure Board (PPIB) has accused China National Machinery Import and Export Corporation (CMC) of exerting undue pressure to seek extension in a feasibility study deadline for 250 mw coal-based project to be set up in Sonda Jherruk (Sindh), sources told Business Recorder.
They said that CMC Vice Chairman Ms Qin Ruijuan had written a letter on May 28 to the PPIB wherein she had reportedly asked for 4-6 months extension in feasibility study, without payment of penalty, but Islamabad is reluctant to extend the deadline.
"Such extensions have been sought by CMC in the past through its representatives," sources said. They said that CMC had neither submitted any formal report nor document, much to the chagrin of PPIB. The CMC had obtained licence from Sindh government for 56.7 square kilometre area at Sonda-Jherruk, in Thatta District, to set up a power plant of 250 mw.
As such, PPIB, as indicated in its letter on May 12, 2008 was not legally bound to entertain or respond to any of the company''s correspondence, sources quoted PPIB as saying in its letter recently addressed to Ms Ruijuan. The company was conducting a project feasibility for coal power plant for which it has still to submit to the PPIB for tariff approval.
In another feasibility report, the CMC had estimated the coal mining capacity of deposits at Sonda-Jherruk at around 1.2 million tons per year, which is considered adequate for setting up a power plant. "If the feasibility study is not completed on time, then PPIB, without any financial or legal obligation on its part, may review the contract," sources quoted PPIB Managing Director as saying in the letter. The CMC is a state-owned company with sound technical expertise in producing electricity from coal-based power plants.
Sources said that relations between PPIB and CMC have worsened after a letter written by the company threatening that any decision to terminate the contract by PPIB would harm friendly ties between Pakistan and China. "We would like to advise you to refrain from commenting on issues which are the prerogative of the foreign office and instead concentrate on preparing a feasibility study," sources quoted PPIB as saying in the letter to the company.
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