ISLAMABAD: Private Power & Infrastructure Board (PPIB) has requested State Bank of Pakistan (SBP) to make available foreign exchange for payment o
ISLAMABAD: Private Power & Infrastructure Board (PPIB) has requested State Bank of Pakistan (SBP) to make available foreign exchange for payment of Sinosure fees by Pak Matiari-Lahore Transmission Company (private) Limited (PMLTC).
In a letter to Executive Director, Financial Market and Reserve Management, SBP, PPIB has given the reference of PMLTC letter of June 24, 2022 in which the company noted that there has been a significant delay in approval by SBP of payment request filed by the company on May 9, 2022 amounting to $ 6.31 million to Sinosure. Accordingly, pendency of payment could result in material breach of Sinosure policy leading to breach under financing documents. PPIB has highlighted that non-availability of requisite foreign currency would result in lapse of consent under Implementation Agreement (IA) that would expose the government of Pakistan (GoP) to various potential litigations.
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According to PPIB, pursuant to provisions of Implementation Agreement, it is the responsibility of GoP to make available through SBP the foreign currency not available through normal banking channels within specified time for payment in foreign currency related to the projects including the payment of premiums and fees to offshore insurers and re-insurers.
PPIB has requested that requisite payment application submitted by the Company for payment to Sinosure may be processed by SBP at the earliest.
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