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Chinese Firms Operating Under CPEC Warn Of Shutting Down Power Plants If Pakistan Fails To Pay $1.59 Billion In Dues: Report
Chinese-built power plant in Pakistan
The Chinese companies, operating under the China-Pakistan Economic Corridor (CPEC) projects, have warned authorities in Pakistan that they would be forced to shut down their power plants this month unless payments, amounting to Rs 300 billion Pakistani rupee (~$1.59 billion) dollars, were made upfront.
In a meeting with Pakistan's Minister for Planning and Development Ahsan Iqbal, the Chinese Independent Power Producers (IPPs) complained about the buildup of their dues and warned that without upfront payments they would shut down within days, reports Dawn.
According to the report, the representative of the Chinese IPPs said the authorities were pressuring them to maximise generation to meet peak summer needs, but “this is impossible for us in view of serious liquidity issues”.
Asserting that the fuel prices, especially that of coal, had risen up by three to four times, the power producers said that they should be given at least three to four times greater liquidity to make arrangements for fuel.
The warning by Chinese IPPs comes as Pakistan is facing grave energy crisis amid soaring prices of fuel and rising temperatures in the summer season.
Power shortfall in Pakistan reached 7,468 MW last month, resulting in up to 10-18 hours of load shedding in the country, reports The News International.
According to the report, the total power generation in Pakistan last moth stands at 18,031 MW, while the demand hovers around 25,500 MW.
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