China Huaneng Seeks PMO Intervention Over Sahiwal Power Plant Payment Deductions

China Huaneng, the operator of the 1,320MW Sahiwal coal-fired power plant, has reportedly sought intervention from the Prime Minister’s Office over capacity payment deductions that have remained unresolved for nearly four years.

 

The company has alleged that progress on its claim with the Central Power Purchasing Agency-Guarantee (CPPA-G) is being linked to unrelated conditions, describing the situation as a proposed “give-and-take” arrangement.

 

According to the company, the deductions arose during FY2022-23 when Pakistan's foreign-exchange crisis affected its ability to make timely payments to international coal suppliers, resulting in coal procurement difficulties and reduced generation availability.

 

China Huaneng has maintained that the situation resulted from exceptional national-level foreign-exchange constraints rather than operational negligence. The company has also pointed to a similar case involving another CPEC power project, whose capacity payments were reportedly approved by the relevant authorities.

 

The company has requested that its case be considered independently and placed before the competent CPPA-G board or authority without further delay.

 

The development comes as Pakistan continues efforts to seek concessions and discounts from independent power producers to reduce the financial burden on the country's power sector.