KARACHI: Port Qasim Electric Power Company (PQEPC), the first power project under China Pakistan Economic Corridor (CPEC), is facing a liquidity crunch as its accumulated receivables have reached $150 million only after one year of operations.[the_ad id=”31605″]The 2×660 MW plant was commissioned in April 2018, and it has contributed 10 billion units to the national grid, Chairman PQEPC Sheng Yumning said speaking at a press conference on Thursday.
“We are in constant coordination with the concerned authorities apprising them on the difficulties we are facing as we have to make payments for imported coal as well as debt installments,” Sheng said adding, “We are also aware of the problems being faced by the government and we hope the issue would be resolved soon.”
He informed that the rupee devaluation had also caused them losses as according to the agreement the impact of currency devaluation could not be passed on. The Power China’s coal fired plant at Port Qasim imports 4.5 million tons of coal per annum to run the two units of 660MW each.
Sheng Yumning said Power China was evaluating other investment opportunities in the renewable energy sector as well as setting up an industrial park, however nothing substantial was finalized as yet.
“Based on data at our hands, it is predicted that Pakistan would be generating surplus electricity within next three years, and once the power woes are solved there would be rapid industrial growth in the country.”
He said Chinese companies were investing in Pakistan in projects beneficial for the host country with an aim to further strengthen the brotherhood between the two countries.
Chairman PQEPC said they had utilized the cutting-edge supercritical technology with the objective of zero percent emission levels adding that the company had employed over 400 locals including engineers, which were trained in China.
Yuming said development of such an advanced and eco-friendly power plant had set a precedent and would pursue other players to opt for environment friendly technologies.