The imported-coal fired power companies of China are facing impediments in resolution of several crucial issues with government organizations.
According to Business Recorder, the overdue amount of Chinese coal-fired power plants currently stands at more than Rs. 350 billion. This in turn is directly impacting their coal purchases.
The China Power Hub Generation Company has recently stated that its receivables have reached an alarming level of Rs 81.91 billion. Sahiwal Coal Power Plant has also said recently that more than 0.5 million tons of the coal it imported from South Africa is waiting for clearance at the port, the reason being non-payment to coal suppliers.
CEO of Port Qasim Electric Power Company, Guo Guangling, has also revealed recently that his company had to postpone the settlement process with the coal supplier due to constraints on the use of US Dollar reserves.
In this regard, Prime Minister Shehbaz Sharif was informed by Chinese producers that the Port Qasim Project is able to use Chinese Yuan (RMB) to buy coal. Therefore the Chinese companies requested the State Bank of Pakistan (SBP) to support Port Qasim to exchange RMB.
In late July, Chinese power companies, in a meeting with Finance Minister Mifath Ismail, asked the government to provide them with foreign exchange as well as an open revolving accounts. The companies also urged the government to resolve their liquidity damages, tariff adjustment and payment issues.
The representatives of Chinese companies complained that National Electric Power Regulatory Authority (NEPRA) is not responding positively to their requests for tariff adjustment. The regulator has not responded to letters written in this regard, Chinese companies said.
