PHOTO: FILEThe China Pakistan Economic Corridor (CPEC) power projects are also hit by the circular debt and the government has not been able to clear Rs188 billion due payments in breach of a bilateral energy framework agreement. Sinosure had charged 7% fee on the insurance of the loans given to the Chinese companies that set up CPEC power projects. Gohar maintained that the Gwadar power plant-II would not be installed, as the government has banned imported-coal based power projects. Gohar said that the government has also downgraded the Chashma-5 nuclear power project from a committed to a candidate project. China has set up 12 power plants under CPEC and the repayments of the Chinese debt are included in the electricity tariffs.

Source: The Express Tribune May 09, 2021 03:18 UTC