PPIB Calls on State Bank to Disburse $758 Million for IPP Payments
PPIB Calls on State Bank for $758 Million to Settle IPP Payments
The Private Power & Infrastructure Board (PPIB) has reached out to the State Bank of Pakistan (SBP), urging for the disbursement of $758 million. This funding is essential to reimburse investors who have financed various power projects, predominantly those falling under the umbrella of the China-Pakistan Economic Corridor (CPEC).
Managing Director of PPIB, Shah Jahan Mirza, penned a letter to SBP Governor Jameel Ahmed, highlighting the urgency of this request just days prior to Prime Minister Shehbaz Sharif’s scheduled visit to China.
Mirza expressed deep concerns over delays faced by Independent Power Producers (IPPs) in obtaining SBP approval for currency conversion from Pakistani Rupees to US Dollars. These delays hinder IPPs from fulfilling their financial obligations to lenders, coal suppliers, and contractors, thereby jeopardizing the seamless operation of their projects.
In response to the distressing situation, IPPs have sought assistance from PPIB to address these challenges and ensure the continuity of their projects.
The following table outlines the outstanding payments for several IPPs, categorized by their respective currency components:
