Islamabad: The Ministry of Foreign Affairs (MoFA) has requested the text of 11 draught projects agreed between Pakistan and China from the Ministry of Energy.
The texts of 11 pacts with China are being sought at a time when Chinese enterprises are experiencing unreasonable delays in receiving outstanding payments and both nations are considering the second phase of the China Pakistan Economic Corridor (CPEC).
Read More: PM directs expedited work on CPEC Phase-II
According to sources, Chinese power sector companies’ past due amounts are presently hovering at Rs250 billion, although there are no signs of payment in the near future.
According to reports, Chinese firms were submitting letters to SAPM on CPEC, Khalid Mansoor, Power Division, and Central Power Purchasing Agency Guaranteed (CPPA-G), the market operator responsible for arranging payments.
CPEC has already completed 5700MW of power sector projects worth $13 billion, while 3500MW of transmission line power sector projects worth $12 billion are still being implemented and are expected to be finished in the next 9 to 12 months. There are 4421MW of power sector projects in the planned stages, including Kohala and Azad Pattan, as well as two wind projects.
Read More: First CPEC hydropower project in Pakistan becomes partially functional
According to the sources, the problem of LoI extension has yet to be settled because the Chinese are concerned about cyclical debt and revolving funds. “The Chinese want a definite guarantee of payments for new projects because their current projects are having payment problems,” the sources said.
Chinese projects have gotten to where they are now on their own equity, and if debt is not cleared, they will be delayed for a long time. Pakistani officials brought up the problem with the Chinese ambassador, who suggested that the subject be taken up with China’s senior brass.
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