IPPs demand release of $758 million pending amount

Engineering Post Report

More than three dozen Independent Power Producers (IPPs)  are running power  plants of  varying strength in different  parts of the country. Most of these IPPs have been established by the Chinese investors  under  the overall framework of China -Pakistan economic Corridor (CPEC).

IPPs  have sought intervention of the Private Power and Infrastructure Board (PPIB)  for releasing $ 758 million  and facilitate their conversion of different currencies into dollars  through the State Bank of Pakistan.  Delays in conversion of different currencies such as Euros, Great Britain Pounds  and Chinese Yuan into dollars are adversely affecting their ability to meet  financial  obligations  towards project leaders, coal suppliers and contractors.

The IPPs established under CPEC which are seeking early conversion of their pending amounts totalling $ 758 million included China Hub  Power, Port Qasim Electric  Power Limited, Huaneng Shandong (Sahiwal), CNY,  Engro Powergen  Thar,   Euro, Thar Coal Block-1 Power Generation Company  Limited,Pak-Matiari Transmission Company Limited,  Thal  Nova Power  Thar Limited,  Karot Power Limited, , Attock Power Gen Limited, Rousch Power limited,  Ha wa Power Limited,  Jhimpir Power Limited, AJ Power Limited,  three Gorges  First wind  Farm Pakistan Pakistan (Pvt) Limited, Metro Power Company Limited , Gul Ahmed  Wind Power  Limited,  Tenega  Generasi  Limited,  Hydro China    Dawood  Power Pvt Ltd , Tricon  Boston  Consulting Corporation Pvt Ltd and DIN Energy Ltd.  Financial amounts figures have been avoided here for want of space, please.

IPPs were introduced more than two decades back to supplement and overcome power generation shortages in the public sector every now and then. The agreements with the IPPs have been subjected of discussion and concern for quite some time as  the IPPs have to be paid for their power generation irrespective of the  fact whether  the power is utilized or not.