UEP Wind Power (Private) Limited, a 99-megawatt wind farm under the China-Pakistan Economic Corridor (CPEC — Pakistan’s main infrastructure partnership with China), has asked the Central Power Purchasing Agency-Guarantee (CPPA-G — the state buyer of electricity) for Rs5.824 billion to cover its financial obligations by 31 December 2026. In a letter dated 19 October 2026 to CPPA-G’s chief executive, the company warned that a cash shortfall could put the project at risk of default.
The company said its projected cash flow would not be enough through December for debt servicing, operations and maintenance (O&M), sales tax, working-capital loan repayments, insurance and other running costs. It asked for the funds in installments under a month-wise payment schedule so each deadline can be met on time.
How the Rs5.824 billion breaks down
According to the letter, the largest single item is Rs2.651 billion to repay a working-capital loan. Debt servicing payable to China Development Bank accounts for another Rs1.834 billion. Other projected costs include Rs841.38 million for the O&M operator, Rs323.59 million in sales tax, Rs125.94 million in operating and administrative expenses, and Rs48.47 million for project insurance.
Under the proposed schedule, the company needs about Rs628.14 million in October, Rs179.61 million in November and Rs5.016 billion in December. Most of the debt-servicing and working-capital loan repayments fall due in December. The company said the payments were needed to keep the plant running smoothly and without interruption, and asked CPPA-G to keep supporting the project so liabilities can be settled on time.
Rising unpaid bills and wider CPEC stress
The letter also points to growing receivables. Unpaid invoices are projected to rise from Rs8.117 billion in October to Rs9.317 billion by December 2026, while overdue invoices are expected to climb from Rs6.532 billion to Rs8.147 billion over the same period.
UEP Wind Power said continued support from CPPA-G had already helped it settle long-overdue amounts owed to its O&M operator. It has now sought priority for repayment of a long-overdue shareholder loan that its shareholder has advised should be cleared in full by 31 December 2026. It also flagged about Rs323.592 million in sales tax as a mandatory payment to the national exchequer by 22 December 2026. The company added that it had entered its tenth year of operation but had not yet distributed any dividends to shareholders.
Reports say CPPA-G owes about Rs500 billion to Chinese power plants built under CPEC, amid financial strain linked to weak recoveries by power distribution companies (DISCOs — the utilities that bill homes and businesses). Those recoveries remain below the National Electric Power Regulatory Authority (NEPRA — the power regulator) requirement that distributors collect 100 percent of billed amounts. Mounting receivables have increased liquidity pressure on CPEC power projects and made debt servicing harder. Copies of the letter were also sent to the Embassy of China in Islamabad, the Power Division secretary, the managing director of the Private Power and Infrastructure Board (PPIB), CPPA-G’s chief financial officer and the CPEC Authority.
Timeline: what has happened so far
- 19 October 2026: The company writes to CPPA-G seeking Rs5.824 billion and warning of default risk.
- October 2026: About Rs628.14 million is sought under the proposed schedule; unpaid invoices stand at Rs8.117 billion.
- November 2026: About Rs179.61 million is needed under the same schedule.
- 22 December 2026: About Rs323.59 million in sales tax is due to the national exchequer.
- December 2026: About Rs5.016 billion is due, mostly for debt and working-capital repayments; unpaid invoices are projected at Rs9.317 billion.
- 31 December 2026: Deadline to meet financial obligations and repay the shareholder loan in full.
Aasan alfaaz mein
UEP Wind Power CPEC ka 99 megawatt wind project hai. Company ne CPPA-G se Rs5.824 arab maange hain taake December 2026 tak qarz aur kharche ada ho saken. Agar paisa na mila to default ka khatra hai. Late bills aur kam recovery se power projects ko cash ki kami ho rahi hai, jis se system par dabao barh sakta hai.
