CPEC Authority asks Pakistan's power company to pay overdue

Islamabad [Pakistan], February 1 (ANI): The China Pakistan Economic Corridor Authority (CPECA) has urged the Central Power Purchasing Agency-Guaranteed (CPPA-G) to pay overdue receivables of IPPs established under CPEC, warning that the plants may go into default because of rising prices of coal in the international market, according to a media report.
The issues of CPEC projects are amongst the key agendas of Pakistan Prime Minister's forthcoming visit to China, commencing from February 3, this year, Business Recorder reported.
According to the media outlet, the CPEC Authority, in its presentation, has raised the major issues of CPEC energy cooperation include --overdue/receivables of Rs 250 billion, IPPs may go in default because of rising prices of coal in the international market and IPPs may suspend the operations of power plants as per suspension clauses of Power Purchase Agreements (PPAs).
In December 2021, CPEC Authority proposed that overdue payments need to be made to the IPPs urgently as with pending claims, Sinosure, could not support new projects in Pakistan anymore, Business Recorder reported.
Speaking about Revolving Account (RA) for CPEC IPPs, the sources cited by Business Recorder said that, CPPA-G has signed the opening of RA and Private Power and Infrastructure Board (PPIB) has signed Supplementary Agreement (SA) with the CPEC IPPs.
However, RA has not been set up as yet, it said.
Beijing has heavily invested in the CPEC as a short route that allows it to avoid the circuitous Gulf of Malacca and the South China Sea region, according to experts. (ANI)