UEP Wind Power (Private) Limited, a 99-megawatt wind power project under the China-Pakistan Economic Corridor (CPEC), has sought Rs. 5.824 billion from the Central Power Purchasing Agency-Guarantee (CPPA-G) to meet its financial obligations by December 31, 2026, warning that a cash shortage could put it at risk of default.
In a letter dated October 19, 2026, addressed to CPPA-G’s chief executive officer, the company said its projected cash flow was insufficient to cover debt servicing, operations and maintenance (O&M) charges, sales tax, working-capital loan repayments, insurance, and other operating expenses through December.
The company has requested the funds in installments under a month-wise payment schedule to meet its obligations within the required deadlines.
Working-Capital Loan, Debt Servicing Drive Payment Needs
According to the letter, the largest payment is Rs. 2.651 billion for repayment of a working-capital loan, followed by Rs. 1.834 billion in debt servicing payable to China Development Bank (CDB). Other projected expenses include Rs. 841.38 million for the O&M operator, Rs. 323.59 million in sales tax, Rs. 125.94 million in operating and administrative expenses, and Rs. 48.47 million for project insurance.
UEP Wind Power said the payments were necessary to ensure the project’s smooth and uninterrupted operation. It asked CPPA-G to continue supporting the project to prevent a potential default and allow it to settle its liabilities on time.
Under the proposed schedule, the company requires approximately Rs. 628.14 million in October, Rs. 179.61 million in November, and Rs. 5.016 billion in December. Most of the debt-servicing and working-capital loan repayments are due in December.
Unpaid Bills Expected to Reach Rs. 9.3 Billion
The letter also highlights the company’s growing receivables. Unpaid invoices are projected to rise from Rs. 8.117 billion in October to Rs. 9.317 billion by December 2026, while overdue invoices are expected to increase from Rs. 6.532 billion to Rs. 8.147 billion over the same period.
The company said continued support from CPPA-G had helped it settle long-overdue liabilities to its O&M operator. It has now sought priority for repayment of a long-overdue shareholder loan, which its shareholder has advised should be repaid in full by December 31, 2026.
UEP Wind Power also highlighted Rs. 323.592 million in sales tax liabilities, describing the payment as a mandatory obligation to the national exchequer by December 22, 2026. The company added that it had entered its tenth year of operation but had not yet distributed any dividends to shareholders.
CPPA-G Owes Around Rs. 500 Billion to Chinese Power Plants
According to sources, CPPA-G owes approximately Rs. 500 billion to Chinese power plants established under CPEC, amid financial constraints linked to inadequate recoveries by power distribution companies (DISCOs).
Sources said DISCO recoveries remained below the level required under National Electric Power Regulatory Authority (NEPRA) directives, which require distribution companies to recover 100 percent of billed amounts from consumers.
Mounting receivables have increased liquidity pressures on CPEC power projects, making it harder for them to meet debt-servicing obligations and other financial commitments. UEP Wind Power’s request highlights the potential consequences of delayed payments, including the risk of default if mandatory obligations cannot be met on time.
Copies of the letter were also sent to the Embassy of China in Islamabad, the secretary of the Power Division, the managing director of the Private Power and Infrastructure Board (PPIB), the chief financial officer of CPPA-G, and the CPEC Authority.
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