The Government of Pakistan has recovered mobilization advance paid to Chinese firm M/s Dongfeng. According to Power Division, the government has recovered amount equivalent to Rs 2,123,245,406. "It's Dongfang portion. That is recovered. Another portion relates to GE which has also assured to pay it back," said an official spokesperson.
The Engineering Procurement & Construction (EPC) contract for tri-fuel (ie gas + furnace + HSD) fired 525 MW, CCPP, Chichoki Mallian, was signed between Northern Power Generation Company Limited (NPGCL) and Dongfang Electric Corporation Ltd (DECL), China, on 01.04.2008. The total value of EPC contract was equal to US $345.45 million. Mobilization advance equal to 10 percent of contract value was made to DECL in August 2008. The physical work of this power project could not be started till 2015. In May 2015, the competent authority of Ministry of Water & Power decided to close the 525MW
Chichoki Mallian Project and recover advance payment from DECL. As a result of untiring efforts of the management and series of negotiation with DECL, the amount of mobilization advance has been recovered and Rs 2,123.245 million is credited to the bank account of NPGCL on 26.09.2017.
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