The Private Power & Infrastructure Board (PPIB) has requested the State Bank of Pakistan (SBP) to release $758 million for foreign payments related to Independent Power Producers (IPPs).
Most of these IPPs are established under the China-Pakistan Economic Corridor (CPEC).
According to reports, PPIB Managing Director Shah Jahan Mirza wrote to SBP Governor Jameel Ahmed, highlighting the concerns of IPPs about delays in converting PKR to USD. These delays are affecting their ability to meet financial obligations to project lenders, coal suppliers, and contractors.
The letter referenced numerous complaints from IPPs about delays in SBP approvals, which are necessary to fulfill financial commitments under project agreements. IPPs are seeking SBP’s approval for currency conversion to ensure smooth operations and maintain commitments to various stakeholders.
The total pending amount is $758 million including amounts in USD, Euros, GBP (Great Britain Pound), and CNY (Chinese Yuan). It is uncertain whether SBP has responded to the PPIB’s request before the prime minister’s visit to China.
Pending payments to IPPs include amounts for 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 ($212,586), FFC Energy Limited (Euro 222,352), Three Gorges First Wind Farm Pakistan (Pvt.) Ltd (CNY 380,050), Metro Power Company Ltd ($898,001, GBP 4,172, CNY 898,001), Gul Ahmed Wind Power Limited ($2,089,724), Tenega Generasi Limited ($23,232), Hydro China Dawood Power Pvt. Ltd ($564,670), Three Gorges Second Wind Farm Pak Ltd (CNY 10,739), Tricon Boston Consulting Corporation Pvt. Ltd-A, B, C (Euro 11,048, GBP 2,296 each), and DIN Energy Ltd ($925,284).
