Pakistani power providers have not paid about Rs 550 billion in outstanding payments to Chinese independent power producers (IPPs), causing China Export and Credit Insurance Corporation (Sinosure) to withhold insurance coverage for the project, causing it to be shelved for three years.
The government of Azad Kashmir’s modifications to the environmental laws and land acquisition statute also raised issues. China Three Gorges Dam Corporation (CTG), the project’s Chinese sponsor, has called for the $2.5 billion hydropower station to be revived earlier this year.
These sources state that the Private Power and Infrastructure Board (PPIB), the Power Division’s one-window investment facilitation arm.
