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Business

OC
Our Correspondent
November 16, 2017

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Hubco, PPIB sign implementation agreement

Hubco, PPIB sign implementation agreement

Karachi: Hub Power Company Limited, the country’s largest independent power producer, signed an implementation agreement with the Private Power and Infrastructure Board (PPIB) for the development of 330 megawatts coal-based power plant in Thar, a statement said on Wednesday. 

The mine-mouth coal-based power plant is expected to be commissioned at Thar Coal Block II by the end of 2020 under China-Pakistan Economic Corridor (CPEC) and estimated to cost $505 million project.  Fatima Maryam chief financial officer at Thar Energy Limited, a subsidiary of Hubco, signed the project’s implementation agreement with Shah Jahan Mirza, managing director of PPIB. 

The project’s engineering, procurement and construction contract has already been awarded to China Machinery and Engineering Corporation, which has started preliminary activities on the site in order to meet commercial operation date.   So far, five agreements, including power purchase, coal supply, water use, implementation and supplemental implementation, have been signed.

The statement said Thar Energy Limited (TEL) has engaged China Development Bank as the lead arranger for the project’s foreign financing from China and Habib Bank as the lead arranger for local financing.

Hubco has also offered 30 percent shareholding to Fauji Fertilizer Company Limited and 10 percent to China Machinery Engineering Company in TEL. The company is in the process of finalising the shareholder’s agreement. Currently, Hubco produces 1,600MW through its three plants in Hub, Narowal and Azad Kashmir. The company is the only power producer in Pakistan with interests in three projects listed in CPEC, namely imported coal-based project in Hub under China Power Hub Generation Company (Private) Limited, development of Block II of Thar coal field under Sindh Engro Coal Mining Company Limited and Thar Energy Limited.

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