Panel to expedite clearance of China IPPs dues

ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail on Friday formed a high-powered committee to engage Chinese IPPs (independent power producers) regularly to address their concerns regarding outstanding payments, an official statement said.

The body comprises representatives from Finance & Power Divisions and officials from China-Pakistan Economic Corridor (CPEC) related institutions.

The statement said a decision to this effect was taken in a meeting that was presided over by the finance minister at the Finance Division.

Federal Minister for Power Khurram Dastgir Khan, Dr Muhammad Jehanzeb Khan, Special Assistant to the Prime Minister on Government Effectiveness, Special Assistant to Prime Minister Tariq Fatmi, Special Assistant to Prime Minister Zafaruddin Mehmood, Secretary Power, CEOs of Chinese IPPs, and senior officers from Finance and Power Divisions attended the meeting.

Chinese power projects built and operated under CPEC are likely to default on their debt repayments due soon, as their receivables have surged above Rs340 billion as the government continues to drag its feet on them.

Mismanagement, on part of Pakistani officials, has put as many as 11 Chinese power companies in a tight financial spot.

Eight of these 11 IPPs are expecting clearance of their combined dues of Rs340 billion to continue power generation.

The meeting discussed the issue of outstanding payments to Chinese IPPs in Pakistan and other hurdles faced by them.

Addressing the meeting, the finance minister said the CPEC was a flagship project of friendship between Pakistan and China and expressed the resolve of the present government to provide all kinds of facilities to Chinese investors.

He assured the Chinese IPPs authorities to leave no stone unturned to resolve their concerns without any delay.

The CEOs of Chinese IPPs expressed their satisfaction over the government’s resolve to facilitate them.

Meanwhile, the finance minister also held a meeting with a delegation of the Asia Infrastructure and Investment Bank headed by Supee Teravaninthom, DG (Investment), at the Finance Division.

Senior officers from the Finance Division also participated in the meeting.

Welcoming the AIIB delegation, the finance minister shared with the delegation the currently undertaken budgetary and fiscal measures and apprised them about the targeted revenue and development goals for growing and sustaining the economic infrastructure.

Miftah also informed the delegation about the devastation caused by the recent floods and their impact on the economy of Pakistan.

The AIIB’s Teravaninthom appreciated the economic policies and reforms of the present government for the social uplift of the masses.

She highlighted the role of AIIB in infrastructure development projects and investment and offered support and cooperation on behalf of AIIB to Pakistan.