ISLAMABAD: Private Power & Infrastructure Board (PPIB) has urged State Bank of Pakistan (SBP) to clear “pending payments of $789 million” of power projects including CPEC-IPPs in order to ensure smooth development and operations of their projects, sources close to MD PPIB told Business Recorder.
Managing Director PPIB Shah Jahan Mirza, sources said, in his letter to Governor SBP Jameel Ahmed referred to letter of January 11, 2024 and various letters received from Independent Power Producers, with the majority from those established under China Pakistan Economic Corridor (CPEC).
According to Managing Director PPIB, IPPs are facing delays in getting SBP’S approval for conversion of PKR to USD in order to fulfil their commitments/ financial obligations towards their Project lenders’ coal suppliers’, O&M contractors, insurers, spare parts imports, etc., under their respective project agreements.
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“IPPS are continuously agitating on non-availability of USD for foreign payments at various fora and requesting PPIB to facilitate them and take up the matter with SBP for the smooth development and operations of their projects,” the sources quoted Managing Director PPIB as saying in his letter.
“IPPs are agitating at various fora and requested PPIB to facilitate them and take up the matter with SBP for the resolution at the earliest, in order to avoid unnecessary delays and for the smooth development and operations of their projects,” Mirza added.
The details shared by the IPPs with PPIB are as follows: (i) China Hub Power, $67,81,855; RMB 7428,378, Port Qasim Electric Power Ltd, $130,263,932; (iii) Huaneng Shandong (Sahiwal) $364,820,973, RMB 96,571,421; (iv) Thar Energy Limited, $ 3,253,790; (v) Thal Nova Power Thar Limited $ 79,896; (vi) Lucky Electric Limited. $ 58,400, GBP 41,657; (vii) Attock Power Gen Limited Euro 2,141,442; (viii) Rousch Power Limited $7,533,497; (ix) Engro Energy $ 10,069; and (x) PMLTC $117,439,593.
Total pending amount in USD is 751,917,750 or GBP 41,657, Euros 2,215,687 and RMB 104,101,199. In dollar terms pending cumulative amount is $768,826,386.
Meanwhile, Chief Executive Officer, China Power Hub Generation Company Private Limited (CPHGC), Chen Yonghua in a letter to Dr Mehmoodul Hassan stated that the company has reached out to all the stakeholders to ensure the availability of USD for making necessary FCY payments to fulfil its payment commitment towards its lenders, fuel suppliers, and O&M contractors pending since long.
He also referred to the letter the company wrote to the PPIB and PPIB requested SBP for approval and arrangement of foreign currency.
Copyright Business Recorder, 2024
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