16.7 C
Athens
Τετάρτη, 7 Δεκεμβρίου, 2022

Unpaid power bills obstruct Chinese funding of Pakistan’s power projects

Περισσότερα Νέα

China on Monday conveyed to Pakistan that huge unpaid power bills are forcing the drying up of Chinese funding to other Pak power projects. The issue of receivables and opening of a revolving account for Chinese CPEC Independent Power Producers (IPPs) is still pending with their receivables now over Rs 300 billion, reported Business Recorder.

The huge receivables of existing Chinese power projects are the main hurdle in convincing banks for further funding in other power projects to achieve their financial closures, well-informed sources in the federal government told Business Recorder. Last month a detailed meeting was held between Secretary Power Division, Rashid Mahmood Langrial and Vice President of China Export and Credit Insurance Corporation (Sinosure) Xu Xinwei to discuss the financial closure of certain CPEC energy projects.

M/s Sinosure has shared a list of the six following banks involved in financing the Thar Block-1 power projects by Shanghai Electric: (ii) China Development Bank (CDB); (ii) Industrial and Commercial Bank of China (ICBC); (iii) Postal Savings Bank of China Limited (PSBC); (iv) Bank of Communications (BCM); (v) China Minsheng Banking Corporation Limited; and (vi) Agricultural Bank of China (ABC). According to sources, the Chinese side was clear on Pakistan’s concerns and issues in the project’s financial closures, saying that they understand four major projects of concern, i.e., Thar Block-1, Azad Pattan, Kohala and Gwadar power project. These projects are very highly valued by the Chinese government and relevant financial institutions, reported Business Recorder.

The Chinese side, sources said, noted that since last year Sinosure made a special task force to take these projects forward with Xu Xinwei as team leader of Task Force. He personally conducted numerous meetings and set up Wechat groups to monitor regular progress on Thar Block-1 and Gwadar coal power projects. He maintained that since February 2022, despite the overdue electricity bills issue, Sinosure has been consistently monitoring progress and has finished deliberations with the Board of Directors.

For the past 6-7 months, Sinosure has been pushing six commercial banks for all the projects to issue loan plans because only long-term solutions from syndicates can be made possible with the approval of the government, reported Business Recorder. Sinosure also met representatives of Shanghai Electric and the six banks face to face and further negotiations will continue to weigh progress on the project.

Chinese side further stated that for the Thar-coal projects, the current situation suggests that some of the banks are holding back investing in CPEC projects, due to the overdue power tariffs as they lack confidence in new projects, since most of the banks are public listed companies and have strict risk management systems, reported Business Recorder. Meanwhile, Secretary Power then noted that since Thar Block-1 power project employed local coal, its commercial operation would help the energy sector’s overall ability to make repayments because of cheaper electricity generation.

Similarly, if Kohala and Azad Pattan power projects could be completed, they would help in bringing down the overall basket price and would help in making payments promptly to the banks which was in both Pakistan and the banks’ interest, reported Business Recorder. Responding to Secretary Power, the Chinese side said that the overdue electricity bills were still a major concern for the banks and if that could be resolved then Sinosure could push forward the banks’ progress, adding that being unable to receive financing solutions from the banks, Chinese officials are unable to move forward to take the next steps, reported Business Recorder.

Ακολουθήστε το Directus.gr

ΑΠΑΝΤΗΣΤΕ

εισάγετε το σχόλιό σας!
παρακαλώ εισάγετε το όνομά σας εδώ

Ροή ειδήσεων

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

‘Lot of Chinese ships operate in Indian Ocean Region’-Indian Navy has deployed guided missile destroyer INS Ranvijay, indigenous frigate Sahyadri and fleet tanker Shakti

Indian Navy has deployed guided missile destroyer INS Ranvijay, indigenous frigate Sahyadri and fleet tanker Shakti New Delhi: A lot of Chinese ships operate in...

Dassault Aviation pitches Rafale fighter jet to Indian Navy, calls it ‘Force Multiplier at Sea’

The Indian Navy celebrated the Navy Day on December 4, 2022, for the first time outside Delhi, in Visakhapatnam. Dassault Aviation, the maker of...

Pakistan’s new ISPR chief is son of Osama-linked scientist who said djinns can make electricity

The father of the head of Pakistan’s powerful military public-relations organisation is a nuclear scientist sanctioned by the United Nations for providing the Taliban...

Chinese capital prepares for ‘life again’ as lockdowns lift across country

China’s capital Beijing dropped the need for people to show negative COVID tests to enter supermarkets and offices on Tuesday, the latest in an...

ΔΗΜΟΦΙΛΗ ΑΡΘΡΑ

Παραδοχή Τούρκων: ”Οι Έλληνες έχουν το δικό τους μη επανδρωμένο εναέριο όχημα-Το Αρχύτας είναι ικανό για κάθετη απογείωση και προσγείωση”

Το Αρχύτας, «ένα drone παρατήρησης, παρουσιάστηκε επίσημα τον περασμένο Σεπτέμβριο,», αναφέρει η τουρκική Milliyet. «Το Αρχύτας είναι ικανό για κάθετη απογείωση και προσγείωση», συμπληρώνει. Σύμφωνα με την...

Βίντεο-ντοκουμέντο από το βενζινάδικο ”καίει” τον Ρομά

Στο νέο βίντεο, από τις κάμερες του κυκλώματος του βενζινάδικου, φαίνεται ακριβώς η στιγμή που ο 16χρονος φεύγει από το βενζινάδικο, ενώ δεν έχει...

”Κόλαση” στο Μενίδι: Πληροφορίες για πυροβολισμούς από Ρομά – Δύο τραυματίες αστυνομικοί στο 401 Νοσοκομείο

Μεγάλη ένταση επικρατεί εδώ και λίγη ώρα στην περιοχή Αυλίζα Αχαρνών. Ομάδες νεαρών Ρομά, σύμφωνα με την αστυνομία, έχουν ανάψει φωτιές στην περιοχή και πραγματοποιούν επιθέσεις με πέτρες και άλλα αντικείμενα εναντίον αστυνομικών δυνάμεων. Σύμφωνα με...

Αποκλειστικό – Συγκλονιστική ανάρτηση του Ινδού πρωθυπουργού στα ελληνικά! – Μήνυμα Ινδίας προς Ελλάδα – Βίντεο

Έναν έλληνα τραγουδιστή επαίνεσε ο Πρωθυπουργός της Ινδίας Ν. Μόντι, δείχνοντας για άλλη μία φορά με αυτό τον τρόπο, πως Ινδία και Ελλάδα έχουν...