Pakistan agrees to fast-track CPEC projects after Chinese firms warn of 'shut down'

Islamabad [Pakistan], May 30 (ANI): After the Chinese firms involved in China-Pakistan Economic Corridor (CPEC) warned of shutting down their projects in the country due to an increase in fuel prices, Prime Minister Shehbaz Sharif is proactively engaged in the resolution of issues.
Official documents reveal that the following Chinese Companies complained about delays in payments by CPPA-G and NTDC: (i) 1320MW Sahiwal IPP;(ii) 1320MW Port Qasim IPP;(iii) 1320MW China Hub IPP;(iv) 660MW Engro Thar lPP;(v) 300MW Zonergy IPP;(vi) 100MW UEP Wind Farm;(vii) 50MW Dawood Wind Farm;(viii) 50MW Sachal Wind Farm;(ix) 100MW China Three Gorges Wind Farm; and (x) Lahore-Matiari HVDC Transmission Line, reported Business Recorder.
The companies stressed that the increase in fuel prices had worsened their liquidity situation, forcing them to shut down their plants.
Shehbaz Sharif has speeded up the resolution of issues facing the Chinese companies including those working in power sector projects, well-informed sources told Business Recorder.
Prime Minister's Office, sources said, has convened a preparatory meeting on Monday (today) with all the Ministries concerned.
Power Division stated that 86 per cent of the bills had been paid and efforts were underway to make further payments to the IPPs, reported Business Recorder.
Insiders claim that the outstanding payables to Chinese IPPs have reached over Rs 350 billion.
Another key issue highlighted during the meeting was the delay in the opening of a revolving account for CEPC IPPs.
The following companies raised the issue stating that the non-fulfilment of this contractual obligation was creating difficulties for them: (i) 1320MW Sahiwal IPP ;(ii) 1320MW Port Qasim IPP;(iii) 1320MW China Hub IPP;(iv) 300 MW Zonergy IPP;(v) 660MW Engro Thar IPP;(vi) 100MW China Three Gorges Wind Farm.
The meeting decided that Power Division and Finance Division will expedite action for a final decision on the opening of the Revolving Account.
The following project raised the matter of issues in Financial Close due to no clearance from Sinosure: (i) 1320MW TCB-1; (ii) 300MW Gwadar power plant; (iii) 700MW Azad Pattan HPP; and (iv) 1124MW Kohala HPP. It was decided that this matter will be raised with the Chinese embassy, reported Business Recorder.
The following companies agitated the matter of increase of Sales Tax on imports from 0 per cent to 17 per cent in Supplementary Finance Act 2021- 2022: (i) 700MW Azad Pattan HPP ;(ii) 1124 MW Kohala HPP;(iii) 884MW Suki Kinari HPP;(iv) 1320 MW TCB-I;(v) 300MW Gwadar IPP;(vi) 330MW TEL;( and (vii) 330MW Thal Nova. Power Division has been directed to take this issue with the FBR.
The following companies suggested that GOP may consider the central purchasing of imported coal for efficient negotiation; (i) 1320MW Sahiwal IPPs; (ii) l320MW Port Qasim IPP; and (iii) 1320MW China Hub IPP. Deputy Chairman Planning Commission (DCPC) stated that the suggestion may be considered by the relevant authorities, reported Business Recorder.
Moreover, multiple Chinese companies raised issues relating to delays in the issuance of visas, as well as, problems relating to the conversion of business visas into work visas for Chinese workers of CPEC projects, reported Business Recorder. (ANI)