Latest news with #PQEPC
Business Recorder
16-07-2025
- Business
- Business Recorder
Payments to Chinese IPPs: PQEPC seeks help of Aurangzeb
ISLAMABAD: Port Qasim Electric Power Company Private Limited (PQEPC) has formally approached Finance Minister Senator Muhammad Aurangzeb, seeking urgent release of funds to the Central Power Purchasing Agency–Guaranteed (CPPA-G) for onward payment to Chinese Independent Power Producers (IPPs). Currently, the outstanding dues owed to Chinese IPPs stand at approximately Rs 480 billion. A portion of this amount is expected to be paid before Prime Minister Shehbaz Sharif's upcoming visit to Beijing, as a gesture to reassure Chinese stakeholders. In a letter to the finance minister, PQEPC's Chief Executive Officer, Wang Dongfang, emphasised that the 1,320 MW Port Qasim Coal-Fired Power Project—developed under the China-Pakistan Economic Corridor (CPEC)—has consistently supplied clean, reliable, and cost-effective electricity to the national grid, even during the COVID-19 pandemic. Chinese IPPs face Rs500bn in unpaid dues He noted the project's active contribution toward mitigating circular debt. According to Wang, the total outstanding dues for the Port Qasim project have reached Rs 87.5 billion (approximately $308.2 million) as of June 30, 2025. These payments have been delayed by over six months and risk further escalation. The CEO warned that the shareholders and sponsors from China and Qatar have expressed deep dissatisfaction over the growing payment backlog, and have urged the government of Pakistan to take immediate action to reduce the outstanding amount. He also pointed out that the current situation legally entitles PQEPC to suspend operations under Section 9.10 of the Power Purchase Agreement (PPA), without incurring any liquidated damages. Wang emphasised that the project enjoys a comparative advantage in Energy Purchase Price (EPP) tariffs when compared to oil- and RLNG-based power plants. A suspension of operations, he cautioned, would be a 'lose-lose' scenario for both parties and must be avoided through timely payments. He further warned that failure to settle dues could result in a breach of the Loan Agreement and default under the Government of Pakistan's Sovereign Guarantee, jeopardizing the country's financial credibility and investor confidence. Given the critical nature of the situation, Wang has requested the finance minister's intervention and coordination with relevant authorities to expedite financial support to CPPA-G, enabling it to clear outstanding dues to the Port Qasim project at the earliest. The Finance Ministry typically releases Rs 5 billion per month to CPPA-G through an escrow account, set up in coordination with Chinese authorities, for the payment of energy costs to Chinese IPPs. Copyright Business Recorder, 2025
Express Tribune
10-03-2025
- Business
- Express Tribune
Energy firms locked in row over coal supply
Two energy companies are locked in a fierce war of words over allegations of illegally awarding a coal supply contract with Port Qasim Electric Power Company (PQEPC). The companies include a major coal importer Awan Trading and Lucky Commodities. Documents revealed that the controversy centred around a letter issued by Lucky Commodities on December 26, 2024, which the company later denied, triggering a series of claims and counterclaims. The dispute arose when a letter was sent to Special Assistant to Prime Minister on Power Muhammad Ali, which alleged that Awan Trading and Sinpa (Pvt) Ltd were illegally awarded a six-year coal supply contract with PQEPC. That letter, which was attributed to Lucky Cement, accused Awan Trading of corruption and misinformation in the bidding process, noting that such contracts were typically for one to two years. The letter called for immediate cancellation of the bidding. Ministry officials shared the letter of Lucky Commodities with the National Electric Power Regulatory Authority (Nepra), which sent it to PQEPC for the company's response. In reply, Awan Trading dismissed Lucky Commodities' allegations as baseless and false, asserting that the contract was awarded through an open and transparent process. It claimed that Lucky had launched a malicious campaign after failing to secure the tender. The letter, attributed to Lucky Commodities, also suggested that Awan Trading was unable to participate due to the ongoing litigation concerning a coal supply contract with one power plant. Responding to that, Awan Trading clarified that the contract was lawfully awarded and it was fulfilling all legal requirements. The legal dispute involves a writ petition filed in the Islamabad High Court, challenging the use of imported coal instead of cheaper coal from Afghanistan. Despite the ongoing legal proceedings, no injunctive order has been issued by the court. Awan Trading emphasised that its customers included Chinese companies investing under the China-Pakistan Economic Corridor (CPEC) project, warning that any allegations could harm Pakistan's reputation and the credibility of local authorities. Later, Lucky Commodities denied the contents of the letter and raised questions about the role of regulatory oversight. Industry insiders blamed the confusion on ministry officials, who had the responsibility to first verify the letter. Awan Trading is now demanding an independent inquiry. The feud has sparked calls for accountability and ministry intervention to prevent further escalation. When contacted, a spokesperson for Lucky Cement said that the first letter that contained allegations against Awan Trading was fake and they did not write any such letter.
