Payments to IPPs: PPIB urges SBP to make $758m available

ISLAMABAD: Private Power & Infrastructure Board (PPIB) has urged dollar-starved State Bank of Pakistan (SBP) to make available $758 million for foreign payments of power projects, majority of them set up under the umbrella of CPEC.

Managing Director PPIB Shah Jahan Mirza, sources said, in a letter to Governor, SBP, Jameel Ahmed, days before Prime Minister’s official visit to China, referred to various letters received from Independent Power Producers (IPPs), wherein they expressed serious concerns regarding delays in 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, etc., under respective project agreements.

“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,” said MD PPIB.

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Pending approvals of IPP pending payments are as follows: (i) China Hub Power, $24,867,288, CNY 3,008,701 (ii) Port Qasim Electric Power Ltd, $132,253,295; (iii) Huaneng Shandong (Sahiwal), $317.667,142, CNY 92,311,593; (iv) Engro Powergen Thar $77,963,601, Euro 1,098,558; (v) Thar Coal block-1 Power Generation Co. Ltd $117,174,258; (vi) Pak-Matiari Transmission Co. Ltd, $3,600,000, CNY 101,400; (vii)Thal Nova Power Thar Limited $30.585;((viii) Karot Power Limited $ 19,686, CNY 317,721; (ix) Attock Power Gen Limited Euro, 3,481,468; (x) Uch Power (Pvt.) Limited $17,133,765; (xi) Uch-II Power (Pvt.) $11,302,732; (xii) Rousch Power Limited $9,555,504, Euro, 1,10,776; (xiii) Hawa Power Limited $3,764,509; (xiv) Jhimpir Power Limited $18,941,209; (xv) AJ Power Limited $212,586; (xvi) FFC Energy Limited Euro 222,352; (xvii) Three Gorges First Wind Farm Pakistan (Pvt.) Ltd CNY 380,050; (xviii) Metro Power Company Ltd, $898,001, GBP 4,172, CNY 898,001; (xix) Gul Ahmed Wind Power Limited $ 2,089,724; (xx) Tenega Generasi Limited $ 23, 232; (xxi) Hydro China Dawood Power Pvt. Ltd $ 564,670; (xxii) Three Gorges Second Wind Farm Pak Ltd, CNY 10,739; (xxiii) Tricon Boston Consulting Corporation Pvt. Ltd-A, B, C Euro, 11,048, GBP, 2,296 each; and (xxiv) DIN Energy Ltd $ 925,284.

Total pending amount in USD is 738,987,073.02, in Euros 5,361,786.63, GBP 14,062.35 and CNY,13,393,274.01. In dollar terms pending cumulative amount is $757,756,196.

It is unclear if SBP has honoured the request of Managing Director prior to the visit of Prime Minister to China.

Copyright Business Recorder, 2024