Mohsin Siddiqui (Chief Reporter)
The Private Power & Infrastructure Board (PPIB) has urgently called on the dollar-starved State Bank of Pakistan (SBP) to release $758 million for foreign payments linked to various power projects. Most of these projects fall under the China-Pakistan Economic Corridor (CPEC) umbrella, a crucial infrastructure initiative between Pakistan and China aimed at enhancing economic cooperation and development.
Days before the Prime Minister’s official visit to China, Shah Jahan Mirza, Managing Director of PPIB, wrote to SBP Governor Jameel Ahmed. Sources revealed that the letter highlighted numerous concerns from Independent Power Producers (IPPs) regarding significant delays in SBP’s approval for converting Pakistani Rupees (PKR) to US Dollars (USD). These delays hinder the IPPs’ ability to meet their financial obligations, including payments to project lenders, coal suppliers, and operations and maintenance (O&M) contractors, as stipulated in their respective project agreements.
In his communication, Mirza emphasized the urgency of the matter, stating, “IPPs are facing delays in seeking 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 import, debt service reserve account, etc., under their respective project agreements. The IPPS are continuously agitating on this matter at various fora and requesting PPIB to facilitate them and take up the matter with SBP for the smooth operations of their projects.”
The letter detailed the pending approvals for IPP payments, outlining the significant amounts owed to various companies. Notable among these are:
China Hub Power: $24,867,288, CNY 3,008,701 Port Qasim Electric Power Ltd: $132,253,295 Huaneng Shandong (Sahiwal): $317,667,142, CNY 92,311,593
Engro Powergen Thar: $77,963,601, Euro 1,098,558 Thar Coal Block-1 Power Generation Co. Ltd: $117,174,258 Pak-Matiari Transmission Co. Ltd: $3,600,000, CNY 101,400 Thal Nova Power Thar Limited: $30,585 Karot Power Limited: $19,686, CNY 317,721 Attock Power Gen Limited: Euro 3,481,468 Uch Power (Pvt.) Limited: $17,133,765 Uch-II Power (Pvt.): $11,302,732 Rousch Power Limited: $9,555,504, Euro 1,10,776 Hawa Power Limited: $3,764,509 Jhimpir Power Limited: $18,941,209 AJ Power Limited: $212,586FFC Energy Limited: Euro
