Tuesday, July 2, 2024 04:13 PM
Sinosure hesitates on insurance for Kohala Hydropower Project
- Delays in construction due to insurance coverage issues
- Sponsors concerned about progress and timeline impact
- Outstanding payments affecting insurance approval for the project
Image Credits: dawn.comThe $2.5 billion Kohala Hydropower Project in China faces delays due to insurance coverage issues linked to outstanding payments, highlighting challenges in large-scale infrastructure projects.
The $2.5 billion Kohala Hydropower Project (KHPP) in China, a massive 1,124MW project planned for construction on River Jhelum in Azad Kashmir, is currently facing delays. The sponsors of the project have raised concerns regarding the progress of the construction due to issues with obtaining insurance coverage.
One of the main reasons for the delays is the hesitation of the China Export and Credit Insurance Corporation (Sinosure) to provide insurance coverage for the project. This hesitation is reportedly linked to the outstanding payments of over Rs550 billion that Pakistani power companies owe to Chinese independent power producers (IPPs).
The delays in securing insurance coverage from Sinosure have created a roadblock for the Kohala Hydropower Project, impacting its timeline and overall progress. The sponsors of the project are working to address these issues and move forward with the construction as soon as possible.
The challenges faced by the Kohala Hydropower Project highlight the complexities involved in large-scale infrastructure projects. It is crucial for all stakeholders to work together to resolve issues efficiently and ensure the successful completion of such vital projects for the region's development and energy needs.
