ISLAMABAD: China Power Hub Generation Company (Pvt) Ltd (CPHGCL) has urged Central Power Purchasing Agency Guaranteed (CPPA-G) to resolve the issues of revolving account and foreign currency saying that two payments awaiting the SBP approval has resulted in exchange loss of Rs 1.3 billion.

M/s CPHGCL is a 2x660 MW coal-fired power plant and a dedicated coal import jetty located in Hub (Balochistan). The $ 2 billion IPP is a priority CPEC project that is supplying reliable electricity to millions of Pakistani households.

The company’s Chief Executive Officer (CEO) and Chief Financial Officers (CFO) have written letters to different top government officials where the issues being faced by the power company have been brought to their notice.

According to the CFO, with reference to Revolving Account Agreement, CPPA-G is required to establish the revolving account within 30 days of COD (August 17, 2019). However, till date, no such account has been established in compliance with the agreement.

Non-availability of forex: CPHGC lands in hot water as SBP stops payments

CPHGCL says that it has conveyed its concerns in 12 different letters and meetings with relevant officials of Government of Pakistan and CPPA-G.

A joint meeting was held between all CPEC projects & CFO of CPPA-G, Rehan Akhtar (incumbent CEO) in February, 2022, wherein the CFO (CPPA-G) clarified that the CPPA-G is in the process of negotiation with banks to establish working capital lines and that the revolving account will be maintained for invoices submitted after the availability of working capital lines by CPPAG. No fund will be maintained for the existing overdue invoices.

Copyright Business Recorder, 2022