LAHORE: Chinese-owned Sahiwal coal-fired electricity project, having 1,320megawatts generation capacity, has neared the brink of closure within ninemonths of its operation as government couldn’t settle Rs20 billion in powerdues of the project, corporate sources said on Monday, Geo News hasreported.
The sources said the government has yet to pay around Rs20 billion of theoutstanding amount to the management of coal-fired power plants, which arehelping in bridging gap between demand and supply with cheap power.
“Against monthly payments of Rs10 billion, the government is only clearingpartial payments, which may hamper power production,” a project’s officialsaid, requesting anonymity. A spokesman of power ministry argued thatgovernment is making payments to Sahiwal coal power company. “Seventy ninepercent of outstanding amount has been paid till today,” he said, decliningto share other details.
Sahiwal coal power project, which is the first energy sector’s initiativeunder multibillion dollars China-Pakistan Economic Corridor (CPEC), wasbuilt with the cost of $1.6 billion. Construction on the project started inMarch 2015. The first generating unit of the Sahiwal power plant wasinaugurated in May last. The second unit was put online in late 2017. Theproject was completed in a record period of 22 months.
A joint-venture of China’s state-owned Huaneng Shandong Electricity Limited(owning 51 percent of stake) and textile firm Shandong Ruyi Group (holding49 percent stake) built the project on a build, operate and transfer basis.The plant’s ownership will be transferred to the government of Punjab after30 years of operation.
Appalled by rising receivables, the project’s management raised issue ofnon-payments with the authorities through diplomatic channels, officialssaid.