UEP Wind Power (Private) Limited, a 99-megawatt wind project under the China-Pakistan Economic Corridor, has asked the Central Power Purchasing Agency-Guarantee for Rs. 5.824 billion to meet its financial duties by 31 December 2026, saying a cash shortfall could lead to default.
In a letter dated 19 October 2026 to CPPA-G's chief executive officer, the firm said its projected cash flow would not cover debt servicing, operations and maintenance charges, sales tax, working-capital loan repayments, insurance and other costs through December.
The company wants the amount disbursed in instalments following a month-by-month schedule to meet the required deadlines.
Working-Capital Loan, Debt Servicing Drive Payment Needs
The letter lists the biggest outlay as Rs. 2.651 billion for a working-capital loan repayment, followed by Rs. 1.834 billion in debt servicing owed to China Development Bank. Additional projected costs include Rs. 841.38 million for the O&M operator, Rs. 323.59 million in sales tax, Rs. 125.94 million for operating and administrative expenses and Rs. 48.47 million for project insurance.
UEP Wind Power said these payments are essential for smooth, uninterrupted operation and asked CPPA-G to keep supporting the project to avoid default and settle liabilities on time.
Under the proposed plan, the firm needs roughly Rs. 628.14 million in October, Rs. 179.61 million in November and Rs. 5.016 billion in December, with most debt-servicing and loan repayments due in December.
Unpaid Bills Expected to Reach Rs. 9.3 Billion
The correspondence also notes rising receivables, with unpaid invoices projected to climb from Rs. 8.117 billion in October to Rs. 9.317 billion by December 2026, while overdue invoices could rise from Rs. 6.532 billion to Rs. 8.147 billion in the same period.
The company said ongoing CPPA-G support had helped clear long-overdue liabilities to its O&M operator and now seeks priority repayment of a long-overdue shareholder loan, which the shareholder wants fully repaid by 31 December 2026.
UEP Wind Power also highlighted Rs. 323.592 million in sales-tax obligations, describing the payment as mandatory to the national exchequer by 22 December 2026. It added that the project has entered its tenth year of operation but has not yet paid any dividends to shareholders.
CPPA-G Owes Around Rs. 500 Billion to Chinese Power Plants
Sources say CPPA-G's liabilities to Chinese power plants built under CPEC total about Rs. 500 billion, a strain linked to weak recoveries by power distribution companies.
They added that DISCO recoveries remain below the 100 percent level required by NEPRA directives, which mandate full billing recovery from consumers.
Growing receivables have heightened liquidity pressure on CPEC power projects, making debt-servicing and other commitments harder to meet. UEP Wind Power's request underscores the risk of default if mandatory obligations are not satisfied 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, the chief financial officer of CPPA-G and the CPEC Authority.
