ISLAMABAD: Ministry of Foreign Affairs (MoFA) has sought text of drafts of 11 projects from Ministry of Energy signed between Pakistan and China, well informed sources told Business Recorder.
The texts of 11 pacts with China have been sought at a time when Chinese companies are facing undue delay in payment of their overdue amounts and at the same time both countries are mulling over the second phase of China Pakistan Economic Corridor (CPEC).
According to sources, the overdue amount of Chinese power sector companies is now hovering around Rs250 billion but there still are no signs of payment in days to come.
Chinese companies, sources said, were writing letters to SAPM on CPEC, Khalid Mansoor, Power Division and Central Power Purchasing Agency Guaranteed (CPPA-G) which is responsible for arranging payments as the market operator.
Second phase of CPEC: Chinese companies showing some reluctance
According to MoFA, text of the following MoUs/agreements signed with China is not available with it: (i) facility agreement relating to an Export Credit Facility in connection with supply installation and commissioning of a 747MW Gas Turbine Combined Cycle Power Plant at Guddu supported by Sinosure; (ii) pact relating to development of 2x660 MW Coal Fired Power Project at Qadarabad, District Sahiwal; (iii) 99MW UEP Power Project EPC Framework Agreement; (iv) coal supply contract under the project of Integrated Mine Mouth Coal Power Plant in Thar Block-I; (v) MoU for Development of Thermal Power Assets in Pakistan; (vi) MoU on Coal Power Plant in Port Qasim; (vii) Facility Agreement for the Sahiwal Coal-fired Power Plant Project between Industrial and Commercial Bank of China Limited Huaneng Shandong Electricity Limited and Shandong Ruyi Group; (viii) Framework Agreement on Ruyi-Masood Textile Industrial Park and 2x135MW Self-generation coal-fired Power Plant between Industrial and Commercial Bank of China (ICBC) and Ruyi-Masood Textile Company of Pakistan; (ix) Framework Agreement between NEA and MoPNR on Gwadar-Nawabshah LNG Terminal and Pipeline Project; (x) Financing Cooperation Agreement between the EXIM Bank of China and Port Qasim Electric Power Company (Private) Limited (on Port Qasim 2x660 MW Coal-fired Power Plant); and (xi) Implementation Agreement (IA) on Port Qasim Coal Fired Power Plant between Power China and Government of Pakistan.
Power sector projects of 5700MW worth $13 billion have already been installed under CPEC; in addition transmission line power sector projects of 3500MW worth $12 billion are still under implementation scheduled to be completed in the next 9 to 12 months. Power sector projects which are at planning stage are of 4421MW, including Kohala and Azad Pattan and two wind projects.
The sources said the issue of extension in LoIs is yet to be resolved as Chinese are concerned at the circular debt and revolving fund. “Chinese wants firm commitment of payments of new projects as their existing projects are facing payment issues,” the sources maintained.
Chinese projects have reached the current level from their own equity and if debt is not cleared they will face prolonged delays. Pakistani authorities raised this issue with the Chinese ambassador who advised that the matter be taken up with the Chinese top brass.
“Pakistan has requested Chinese authorities to resolve Sinosure related issues of those projects which are already at the execution stage,” the sources said, adding that lenders are ready to give money for the projects but Sinosure is not giving insurance due to treatment of existing projects.
Copyright Business Recorder, 2021
Comments
Comments are closed.