Prime Minister Office intervenes to resolve issues faced by Chinese IPPs.

ISLAMABAD -- The Prime Minister Office has intervened to resolve the issues faced by the Chinese IPPs, installed under China Pakistan Economic Corridor(CPEC), following the Chinese government expressed concern over overdue payments of Rs420 billion ($1.5 billion), import restrictions and revolving funds issues.

Chinese businesses are very concerned due to overdue payments to Chinese IPPs, currently standing at $1.5 billion, said Chinese charge d'affaires Pang Chunxue in a meeting with Tariq Fatimi, Special Assistant to the Prime Minister (SAPM) on Coordination, official source told The Nation. Following the meeting, Tariq Fatimi, in a letter addressed to Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, said that the Chinese Charges d' Affaires, Ms Pang Chunxue raised concerns regarding power projects, established under CPEC, said the source. The first concern was related to overdue payments to Chinese IPPs, currently standing at $1.5 billion and causing huge concerns to the Chinese businesses. Chinese power plants at Hubco, Sahiwal and Port Qasim are facing currency exchange restrictions, which is causing difficulty in importing coal, said the letter available with the scribe. These power plants require a specific: grade coal for power production. If the same is purchased on spot from local market, then NEPRA mandates that the price should not be higher than the price of the imported coal, which is not feasible due to exchange rate fluctuation/rupee devaluation, said the letter regarding the Chinese concern. Capacity payment deduction still...