Pakistan, May 3 — The Chinese company CIHC Pak Power Company Limited (CPPCL), which is building a 300 MW coal-fired power plant in Gwadar, has raised concerns over delays, cost disputes, and tariff issues that are affecting the project’s viability. In a formal letter to the Private Power and Infrastructure Board (PPIB), CPPCL Chairman Zhao Bo listed several challenges, including exchange rate losses, insufficient project cost approvals, and a dispute over financial closing date extension fees.

CPPCL submitted its Performance Guarantee (PG) on March 21, 2025, securing project support until March 2028. However, it received a demand for additional payment for the extension, which CPPCL says contradicts the 2019 Letter of Support (LoS). The company argues that delays caused by government actions or force majeure should exempt them from such charges.

The company also highlighted its development costs of $22 million, well above the approved cap of $10.5 million, and stated that it has already paid over $1 million in processing fees. CPPCL warned that more fees would threaten the project’s financial sustainability. While agreeing to pay $150,000 under protest to avoid further delays, the company reserved the right to seek refunds or legal remedy.

Despite receiving tariff approval, CPPCL says it continues to face serious hurdles, including uncertain financing, payment delays, and a lack of foreign currency support. The firm urged PPIB to act swiftly to resolve the issues, warning that failure to do so could undermine the Gwadar project and the broader CPEC initiative.