Hubco announces equity injection

KARACHI: Hub Power Company Limited announced $3.93 million in investment by China Machinery Engineering Corporation (CMEC) into its subsidiary Thar Energy Limited.

The company established Thar Energy Limited (TEL) to set up 330 megawatts of mine-mouth lignite-fired power plant. Hubco signed a shareholders’ agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC TEL Power Investments Limited (CMEC Dubai) for equity investment of 30 percent and 10 percent, respectively in the project.

Early this year, FFCL also injected equity in the company.

TEL engaged China Development Bank as the lead arranger for the foreign financing from China and Habib Bank Limited as the lead arranger for the local financing. The expected commercial operation date of the coal project is March 31, 2021.

Hubco currently produces 1,601MW 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 the China Pakistan Economic Corridor: imported coal-based China Power Hub Generation Company (Private) Limited at Hub, Sindh Engro Coal Mining Company Limited developing Block II of Thar Coal Field and Thar Energy Limited.