Drafts of 11 energy projects requested by MoFA

The Ministry of Foreign Affairs (MoFA) has asked for text drafts of 11 energy projects signed between Ministry of Energy Pakistan and China.

The aforementioned projects include (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 2×660 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 2×660 MW Coal-fired Power Plant); and (xi) Implementation Agreement (IA) on Port Qasim Coal Fired Power Plant between Power China and Government of Pakistan.

Currently power projects are facing pressure from Chinese companies because of of delay in payments. The overdue amount of Chinese power sector companies is now hovering around Rs250 billion. Chinese companies have also written letters to SAPM on CEPC, Khalid Mansoor, Power Division and Central Power Purchasing Agency Guaranteed (CPPA-G) which is responsible for arranging payments as the market operator.

According to sources the Chinese insurance company Sinosure has also refused to give insurance to new projects which are at execution stage due to treatment of existing projects.