PPIB Urges State Bank to Release $758 Million for IPP Payments

PPIB Urges State Bank to Release

The Private Power & Infrastructure Board (PPIB) has requested the State Bank of Pakistan (SBP) to release $758 million to repay investors who funded power projects, primarily under the China-Pakistan Economic Corridor (CPEC).

Managing Director of PPIB, Shah Jahan Mirza, made this request in a letter to SBP Governor Jameel Ahmed shortly before Prime Minister Shehbaz Sharif’s visit to China, according to a report by Business Recorder.

Mirza expressed concerns about delays faced by Independent Power Producers (IPPs) in obtaining the central bank’s approval to convert Pakistani Rupees to US Dollars. These delays are hindering IPPs from repaying lenders, coal suppliers, and contractors. The power producers have sought PPIB’s assistance to resolve these issues and ensure the smooth operation of their projects.

The following table summarizes the pending payments for several IPPs in their respective currency components:

China Hub Power$24,867,288 CNY 3,008,701
Port Qasim Electric Power Ltd$132,253,295
Huaneng Shandong (Sahiwal)$317,667,142 CNY 92,311,593
Engro Powergen Thar$77,963,601 €1,098,558
Thar Coal Block-1 Power Generation Co. Ltd$117,174,258
Pak-Matiari Transmission Co. Ltd$3,600,000 CNY 101,400
Thal Nova Power Thar Limited$30,585
Karot Power Limited$19,686 CNY 317,721
Attock Power Gen Limited€3,481,468
Uch Power (Pvt.) Limited$17,133,765
Uch-II Power (Pvt.)$11,302,732
Rousch Power Limited$9,555,504 €110,776
Hawa Power Limited$3,764,509
Jhimpir Power Limited$18,941,209
AJ Power Limited$212,586
FFC Energy Limited€222,352
Three Gorges First Wind Farm Pakistan (Pvt.) LtdCNY 380,050
Metro Power Company Ltd$898,001 CNY 898,001 £4,172
Gul Ahmed Wind Power Limited$2,089,724
Tenega Generasi Limited$23,232
Hydro China Dawood Power Pvt. Ltd$564,670
Three Gorges Second Wind Farm Pak LtdCNY 10,739
Tricon Boston Consulting Corporation Pvt. Ltd-A€11,048 £2,296
Tricon Boston Consulting Corporation Pvt. Ltd-B€11,048 £2,296
Tricon Boston Consulting Corporation Pvt. Ltd-C€11,048 £2,296
DIN Energy Ltd$925,284

The PPIB MD urged prompt action to prevent disruptions in ongoing projects and ensure timely payments to all stakeholders.