‘Give-and-take’ arrangement: Chinese firm accuses authorities of forcing it to accept their conditions
ISLAMABAD: M/s China Huaneng, the Chinese company that owns and operates the 1,320-MW Sahiwal coal-fired power plant, has reportedly accused Pakistani authorities of pressuring it to enter into a “give-and-take” arrangement as a condition for clearance of its long-pending capacity payment deductions, well-informed sources in the Planning Ministry told Business Recorder . The company’s Chief…
M/s China Huaneng, the Chinese firm operating the Sahiwal coal-fired power plant, claims Pakistani authorities are pressuring it to accept their conditions under a "give-and-take" arrangement for clearance of capacity payment deductions. The company's CEO has petitioned the Prime Minister's Office and other authorities to intervene in resolving the issue.
The Sahiwal plant, operational for several years, has faced capacity deductions due to uncontrollable circumstances since FY2022-23, including foreign-exchange reserve constraints that hindered timely payments to international coal suppliers. This has resulted in reduced generation and capacity deductions, impacting the plant's ability to procure coal and generate electricity.
Similar issues have been addressed for other CPEC power projects, leading the company to seek CPPA's intervention. However, the company claims CPPA is demanding additional conditions for processing its case, creating a "give-and-take" situation. The company insists its claim should be evaluated independently and without external conditions, similar to the precedent set for the CPEC power project.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
