KARACHI: Hub Power Company Limited (HUBCO), the largest independent power producer in Pakistan, has signed the implementation agreement for its one 330 MW mine-mouth coal-based power plant at Thar with private power and infrastructure board (PPIB).
The agreement was signed by PPIB Managing Director Shah Jahan Mirza and Thar Energy Limited – HUBCO CFO Fatima Maryam.
The company has established Thar Energy Limited (TEL), as its wholly-owned subsidiary to set up one of the first indigenous coal power Plant at Thar Coal Block II. The $ 505 million project, which is also listed on CPEC, is expected to be commissioned by the end of 2020.
The EPC contract for the project has been signed with China Machinery and Engineering Corporation (CMEC) which has started preliminary activities on site in order to expedite COD. The Power Purchase Agreement (PPA), Coal Supply Agreement (CSA) and the Water Use Agreement for the project have been signed. Moreover, the implementation agreement and the supplemental implementation agreement have been signed.
The company has engaged China Development Bank (CDB) as the lead arranger for the foreign financing from China and Habib Bank as the lead arranger for the local financing.
HUBCO has offered 30 per cent shareholding to Fauji Fertilizer Company Limited (FFCL) and 10 per cent to China Machinery Engineering Company (CMEC) in TEL. The company is in the process of finalising the shareholder’s agreement.
The HUBCO currently produces 1600 MW 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 (CPEC), namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Sindh Engro Coal Mining Company Limited developing Block II of Thar Coal Field and Thar Energy Limited.