ISLAMABAD: The National Power Parks Management Company Limited (NPPMCL) has sought help from Private Power & Infrastructure Board (PPIB) for opening Letters of Credit (LCs) to import necessary spare parts and other consumable items.
National Power Parks Management Company (Pvt) Ltd is owned by the Government of Pakistan which also owns and operates two power plants namely 1230 MW Combined Cycle Power Plant (CCPP) Haveli Bahadur Shah (HBS), Jhang and 1223 MW CCPP Balloki, Kasur under the Power Policy 2015.
On May 20, 2022, SBP through its EPD Circular Letter No. 09 of 2022, instructed banks (i.e., authorized dealers) to seek prior permission from SBP’s Foreign Exchange Operations Department (FEOD) before initiating transactions for import of machinery and parts for 25 specific HS Codes under customs tariff which, unfortunately, also pertain to power generating machinery. Later, in continuation of the circular, SBP, in its EPD circular 11 of 2022 of July 05, 2022 expanded the scope of restricted items by including all HS Codes falling under Chapter 84 and 85 of customs tariff.
According to Project Director, NPPMCL, Akram Kamal, the company’s Operation and Maintenance (O&M) contractor of the Balloki Power Plant has informed that their import shipment of air intake filters could not be initiated due to restrictions form State Bank of Pakistan on granting approval for opening of LC.
NPPMCL argues that the maintenances of plant equipment require replacement of certain consumables/parts and if not replaced in time, it has serious consequences on performance of equipment and may lead to breakdown and voidance of warranties and insurance cover.
Director Project, NPPMCL has requested PPIB to approach SBP for urgent approval/permission for opening of LCs pertaining to import of spares/consumables and services related to NPPMCL plants “enabling us to provide the uninterrupted Power supply to National Grid.”
Informed sources told Business Recorder, several Independent Power Producers (IPPs) are facing a similar situation, and have also approached PPIB and other concerned departments for opening of LCs but their requests have not yet been entertained by the State Bank of Pakistan.
Copyright Business Recorder, 2022