ISLAMABAD: In a recent development, the Private Power Infrastructure Board (PPIB) has written a letter to the Chief Executive Officer (CEO) of CIHC Pak Power Company (Pvt.) Ltd, emphasizing the need for the fulfilment of financial obligations related to the 300 MW Imported Coal Power Project at Gwadar Balochistan.
The letter, dated May 15, 2023, highlights the repeated requests made by PPIB to CIHC Pak Power Company Private Limited (CPPCL) regarding the extension of the project’s financial closing (FC) date and the submission of necessary fees.
Citing references to previous correspondences, PPIB reiterates its earlier advisories, urging CPPCL to extend the validity of the existing Performance Guarantee (PG) of US $1,500,000 for an additional three months beyond the Extended FC Date, i.e., until March 31, 2024. Furthermore, the letter emphasizes the requirement for CPPCL to submit the FC date extension fee of US $150,000, which is still pending.
PPIB reminds CPPCL that the extension in FC Date up to December 31, 2023, was approved by the PPIB Board in its 138th meeting, considering the decision made in a meeting presided over by the Minister of Planning Development and Special Initiatives (MoPDSI).
The previous FC date extensions granted to CPPCL had expired on January 31, 2022, and subsequent extensions were given until December 31, 2022, March 31, 2023, and December 31, 2023. However, CPPCL failed to fulfil the necessary requirements and obtain an amendment to the Letter of Support (LOS) to incorporate the FC date extension.
The letter emphasizes that the validity of the Performance Guarantee (PG) beyond three months of the extended FC Date and the submission of the FC date extension fee are mandatory prerequisites for the issuance of the LOS amendment. It further states that the National Electric Power Regulatory Authority (NEPRA) cannot proceed with CPPCL’s request for tariff revision without a valid LOS amendment extending the FC Date by PPIB.
In light of the above, CPPCL is once again urged to fulfill all requirements, including the extension of PG validity and the FC date extension fee, in order to obtain an amendment to the LOS incorporating the FC Date extension. The deadline for compliance is set for May 22, 2023. PPIB emphasizes that failure to submit the extended PG and fee will result in PPIB proceeding in accordance with the terms and conditions of the LOS and its amendments, as the PG is set to expire on May 31, 2023.
It is noteworthy that PPIB has also sent a copy of the letter to the Secretary, Ministry of Energy (Power Division), CEO of CPPA, MD of NTDC, and CEO of QESCO for their information and necessary action.
This latest communication from PPIB to CIHC Pak Power Company (Pvt.) Ltd underscores the significance of fulfilling financial obligations and adhering to timelines in the development of the 300 MW Imported Coal Power Project at Gwadar Balochistan. The project holds immense potential for meeting the growing energy needs of the region, and the timely resolution of these financial matters will play a crucial role in its successful implementation.