The Central Power Purchasing Agency-Guarantee (CPPA-G) owes Rs 498 billion in outstanding payments to power projects established under the China-Pakistan Economic Corridor (CPEC). Port Qasim Electric Power Company (PQEPC) requested that the ministers for finance, planning, and energy intervene to recover its unpaid receivables.
The company operates a 1,320-megawatt coal-fired power plant as part of the CPEC initiative. In a letter dated 29 September, PQEPC reported that its outstanding receivables reached Rs 79 billion, which is approximately $285.4 million.
These payments have been overdue for more than six months. PQEPC warned that continued nonpayment could damage the project's financial viability, jeopardize electricity generation sustainability, and cause defaults under loan agreements and the government's sovereign guarantee.
Approximately Rs 80 billion in receivables are owed for the 1,320-MW Sahiwal coal-fired power plant. China Huaneng owns and operates the Sahiwal facility.
China Huaneng alleged that Pakistani authorities pressured it to accept a “give-and-take” arrangement to clear long-pending deductions from capacity payments. The dispute between China Huaneng and the CPPA-G has persisted for about four years.
Combined, the Port Qasim and Sahiwal projects account for roughly Rs 159 billion in reported receivables.
