Hubco to set up 1,320MW plant as planned

KARACHI: The Private Power Infrastructure Board (PPIB) has agreed to grant extension in the financial closing date for imported coal-based power plant of China Power Hub Generation Company (CPHGC), which means the company would be setting up two plants of 660MW each, as planned earlier.

“The PPIB has now called for a meeting to discuss the extension in the financial closing and Implementation Agreement (IA) for 660x2MW imported coal based power plant at Hub,” Shamsul Islam at HUBCO said in a bourse filing on Friday.

Hubco in October this year notified the bourse that CPHGC, having a generation license for two 660MW coal-fired plants in Hub, was likely to reduce the size of its generation facility to only 660MW.

Since the company was awaiting finalisation of the decision from the government of Pakistan, the power purchase agreement (PPA) and the IA of the project had not been executed, which were required to be signed by October 11, 2016 under the terms of PPIB’s letter of support.

China Power Hub Generation Company is a joint venture of the Hub Power Company Limited (Hubco) and China Power International Holding Limited (CPIHL).

Hubco said CPHGC had been in discussions with the government of Pakistan
on some potential improvement in the required commercial operation date of the project. Now that the Private Power Infrastructure Board has agreed to extend the timelines, Hubco would be getting back to its original plan of setting up the two plants.