ISLAMABAD: Port Qasim Electric Power Company Limited (PQEPC) has reportedly discussed debt restructuring, loan extension and conversion of its plant to Thar coal, as former Prime Minister of Qatar is concerned on non-payment of due amount to the company, well informed sources told Business Recorder.
The Company’s team has held back to back meetings at Islamabad to explore different options with respect to its financial woes, debts, loans extension, etc.
The meetings focused on various matters related to the power sector including the payments to the energy producers and possible ways to resolve the issues hindering timely payments.
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Matters related to the technical and financial feasibility of converting these projects to run on domestic coal, thereby reducing reliance on imported fuel were also discussed.
Finance Ministry, sources said, is also concerned about non-payment of overdue amount to 1320-MW coal-fired coal power plant at Port Qasim despite a letter from former Prime Minister of Qatar Sheikh Hamad Bin Jasim Bin Jaber AI Thani.
Finance Ministry in a letter to Power Division referred to Prime Minister’s Office’s letter of May 15, 2024 along with a self-explanatory letter from Sheikh Hamad Bin Jasim Bin Jaber AI Thani to the Prime Minister and subsequent reminder of July 24, 2024 wherein it was stated that his company has not received any dividends on account of delay in the payment of receivables.
According to Finance Ministry, the matter is related to CPPA-G payables towards CPEC IPPs, Port Qasim Power Plant being one of them where Qatar has shareholding of 49%.
The payables of CPPA-G towards CPEC-IPPs as of June 3, 2024, stood at Rs.477 billion. The total receivables of Port Qasim Electric Power (coal) for the same period are around Rs.82 billion.
Finance Ministry further stated that the matter of clearing payables of CPEC plants was raised before Prime Minister’s visit to China. Finance Division promptly released funds amounting to Rs.227 billion (AJK Rs.50bn, KE- arrears Rs.70bn & KE-TDS Advance Rs.102bn) before visit of Prime Minister in May, 2024. This additional liquidity to power sector was utilised to settle the CPEC-IPPs receivable to the extent of Rs.158 billion. Finance Ministry has recommended to the Prime Minister Office that input with respect to concerns of Emir of Qatar may be obtained from Power Division.
Former Prime Minister of Qatar Sheikh Hamad Bin Jasim Bin Jaber Al Thani in his letter to Prime Minister had urged clearance of payment of $450 million dollars as receivables of Port Qasim Electric Power Company, which established 1320-MW imported coal power plant at Port Qasim.
“I am writing to you for assistance in resolving issues related to the Port Qasim Power project. We have a joint venture with Power China where we own 49% of the project. The project was set up under the CPEC Program when Mian Nawaz Sharif was the Prime Minster of Pakistan. As you may be aware, even though the project has been highly successful and generated significant amount ($810 million since inception), we have not received a single dollar of dividend. This is primarily because of the delay in the payment of receivables which currently stand at $558 million. We would greatly appreciate your intervention to help in payment of these receivables particularly the past due amounts of $ 450 million,” Al Thani said in a letter to Prime Minister which was shared with Finance Ministry and other concerned authorities in May 2024. Recently, PQEPC asked the government to clear its due payments to avoid constitution of loan agreement default and GoP Sovereign Guarantee Default.
Copyright Business Recorder, 2024
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