ISLAMABAD: Financial woes of power projects established under China Pakistan Economic Corridor (CPEC) are not yet over, as the stock of their outstanding receivables against the GoP has again reached Rs 450 billion, despite payment of Rs 100 billion prior to the last visit of Prime Minister Shehbaz Sharif to China, sources in the PPIB told Business Recorder.
This situation has not only irritated the Chinese companies of power plants but also other foreign lenders as the company of former Qatari Prime Minister which had invested over USD 1billion in Port Qasim Power Plant is ready to divest its share as early as possible, sources added.
The Al-Thani Group of Qatar has expressed its intent to divest its 49 percent shareholding in the 1,320 MW Port Qasim coal-fired power plant, well-informed sources in the federal government told Business Recorder.
The 1,320 MW Port Qasim Power Project comprises two 660 MW supercritical coal power units established under CPEC.
Chinese CPEC IPPs press Pakistan govt for Rs475bn dues
The USD2.09 billion project was jointly developed by Qatar’s Al-Mirqab Capital and China’s Power Construction Corporation, a subsidiary of Sinohydro Resources Limited. Al-Thani Group made huge investment in the venture.
In a letter addressed to concerned Ministries and officials including Managing Director PPIB, Chief Executive Officer (CEO), Wang Dongfang, stated that under the guidance of the Government of Pakistan, the 1320 MW Port Qasim Coal-fired Power Project, acting as a leading energy project under CPEC, has continuously provided the cleanest, reliable and economical electricity to the national grid.
And total payment due amount of the project has reached Rs. 80.8 billion, ie, USD288 million by November 10, 2025, with a delay of over 6 months and the due amount could further escalate.
The CEO PQEPC argued that in this case, the project shareholders/sponsors from China and Qatar have expressed significant discontent and requested immediate necessary measures to reduce the outstanding amount.
He further claimed that PQEPC has comparative advantages on the Energy Power Purchase (EPP) tariff, compared with other oil and RLNG power plants.
Therefore, timely settlement of due amount of the project is imminently required to ensure sustainable power generation and avoid loan agreement default and GoP sovereignty guarantee default.
In the light of current situation, Chief Executive Officer of Port Qasim Electric Power Company has drawn attention of concerned authorities to the critical situation of payment delay confronting the Port Qasim power project, and requested coordination with relevant authorities to provide financial support to Central Power Purchasing Agency-Guaranteed (CPPA-G), to enable it to pay off the outstanding amount as early as possible.
Copyright Business Recorder, 2025