ISLAMABAD – Chinese power companies working under China Pakistan Economic Corridor (CPEC) in the South Asian country have demanded timely clearance of their payments against the electricity sold by them to the Central Power Purchase Agency (CPPA) of Pakistan.
The Chinese firms raised the matter during a media interaction arranged by Infodor Salon at the All-Pakistan Chinese Enterprises’ Association (APCEA) as part of the CPEC 10-year celebrations.
They highlighted that the late payments had forced them to inject their equities to make their powerhouses operational in order to provide uninterrupted supplies.
Expressing concerns over partial payments by the government against the total bills, they said their overdue payments had exceeded $1.2 billion.
It was also highlighted that the Chinese national insurance company, M/s Sinosure, has reduced the insurance cover for power projects in Pakistan to 70 percent from previous 95% owing to risk profile of the power purchaser. The media persons were told that the banks were now asking for 25pc coverage from a third party.
It was stated that if the status quo continues, it would made it difficult for the Chinese firms to keep their projects fully operational.
“We are not being paid on time and the government has not constituted a revolving fund as desired by CPEC enterprises, bringing us to a point where we do not even have the funds to open LCs for importing equipment critical to ensure maintenance of the plants,” the firms said in reply to a question.
Earlier, CPEC energy enterprises including Power China Pakistan, China Three Gorges South Asia Investment Ltd, China Energy International Group Company Limited Pakistan Branch, China Power Hub Generation Company (PvT) Ltd, China Electric Power Equipment and Technology Company, China Machinery Engineering Corporation, Huaneng Shandong Ruyi (Pakistan) Energy (Pvt) Ltd briefed the media persons about their respective power projects and their contribution towards the economy of Pakistan and well-being of the people under corporate social responsibility (CSR).
The Chinese enterprises also called for consistency in economic policies, market liberalisation and security to all Chinese projects. They said such measures would attract more investment from not only Chin but also from other countries.
Speaking on the occasion, Infodor Salon Director Fahd Gauhar Malik said the organisation, which focuses on the CPEC Energy Sector, is based on 3Rs approach, Research, Resonate, and Rethinking.
Mr Malik assured maximum support to media in fight against fake news in order build a positive narrative for the CPEC projects in Pakistan.
He also highlighted the success story of the organization and its efforts to strengthen Pakistan-China friendship and CPEC through widespread media coverage and digital outreach. He also emphasized the credibility of Infodor among the masses.
“We will continue to support Chinese projects especially CPEC which has accelerated socio-economic development, job creation and improvement of people’s livelihoods in Pakistan,” he said.
