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February 20, 2020

Hubco sees $400mln in annual revenue from operation, maintenance

Business

February 20, 2020

KARACHI: Hubco, the country’s first and biggest independent power producer, is keen to provide operation and maintenance services to upcoming power plants – a new business line with an estimated annual revenue of $400 million, its chief said.

Tahir Jawaid, chief executive officer at Hub Power Services Limited (HPSL) said the company is capable of exploiting the $400 million of potential operation and maintenance (O&M) annual revenue – that includes O&M manpower services and scheduled outage revenues expected in the power sector of Pakistan.

“Hubco is looking forward to provide O&M services to upcoming Thar coal-based power plants that include 330 MW Thar Energy Limited and 330MW ThalNova Power Thar Limited,” Jawaid said, speaking to media. Both the power plants are expected to start operation from 2021.

Currently, foreign businesses – mostly Chinese companies – are undertaking the O&M of various new power plants. They are namely TEPC/CEEG consortium, Power-China Gansu Energy, Huaneng Shandong Ruyi, China Huadian and HEI-Siemens Consortium.

HPSL also signed an agreement to provide O&M services to onshore and offshore plants in joint venture structure with General Electric, USA. Pakistan has witnessed a rapid surge in power generation capacity to 33,836 megawatts (MW) in 2019 from 23,337MW in 2015 with the installation of new power plants in the last three years. The huge power inflow created a greater opportunity for operations and maintenance industry for the local and foreign vendor industry.

The recently commissioned four plants – cumulatively adding 4,620MW to the power generation capacity of the country – include Sahiwal coal power (1,320MW), Pakistan Port Qasim power (1,320MW), China Power Hub Generation Company Limited (1,320MW) and Engro Powergen Thar Private Limited (660MW). Only these four plants created cumulative O&M revenue (tariff) of $160 million annually.

Furthermore, the upcoming power plants, which are expected to be online up to 2023, would pave the way for O&M revenue of $150 Million – based on an expected 3,930MW power addition. The plants include Thar Energy Limited (330MW), ThalNova Power Thar Limited (330MW), Lucky Energy Limited (660MW), Siddiqsons Energy Limited (330MW), Thar Coal Block-1 (1,320MW), Gwadar coal (300MW) and Jamshoro coal (660MW). Jawaid said all these operational and upcoming coal power plants comprise of modern environmental coal technologies, like ultra-super critical and super critical, with most advanced emission control systems and high overall thermal efficiency. HPSL is currently operating Hub power plant with generation capacity of 1,202MW, Narowal plant (225MW) and Laraib plant, owned by the Hub Power Company Limited, (84MW).