Pakistan seeks China's help for insurance cover of 6 CPEC projects
Nov 10, 2021
Islamabad [Pakistan], November 10 : Pakistan has sought the Chinese government's intervention to persuade China Export and Credit Insurance Corporation, Sinosure, to clear about USD 13 billion insurance cover of energy and infrastructure projects on a priority basis, a media report said.
The Chinese State insurer, Sinosure has to underwrite all foreign investments and debts but has been holding back insurance cover of about USD 5 billion to six major power projects of over 3,500MW under the China-Pakistan Economic Corridor (CPEC). It also has to underwrite USD 8-9 bn insurance cover to Mainline-1, a 1,733km railway line from Karachi to Peshawar, reported Dawn.
Khalid Mansoor, Special Assistant to Pakistan Prime Minister on CPEC, on Tuesday said that he had taken up the matter with China's Ambassador in Islamabad.
All issues are related to strategically important projects, including ML-1 and six energy projects including Gwadar, Karrot, Kohala and Azad Pattan, Thar Block-VI and Thal-Nova power projects besides Quaid-i-Azam Solar power project.
"We have written two separate letters to China's National Development and Reform Commission for resolution of issues hampering the financial close of six energy projects and the term sheet for ML-I project," said Mansoor.
The nature of the friendly relationship between Pakistan and China was such that their companies had never called government guarantees despite huge overdue receivables from Pakistan, he added.
Mansoor said that the Chinese lenders were ready to provide funds for projects but Sinosure had to give the insurance policy. Many of these projects have already advanced with equity investment and could not be delayed for the debt part, according to Dawn.
