KARACHI: The Hub Power Company Limited (HPCL) on Wednesday announced that China Machinery Engineering Corporation (CMEC) had acquired a 10 percent stake in its subsidiary Thar Energy Limited (TEL) for $3.93 million.
HPCL had setup TEL for establishing a 330-megawatts of mine-mouth lignite-fired power plant and had signed an agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC Tel Power Investments Limited (CMEC Dubai) for an equity investment of 30 percent and 10 percent respectively.
HPCL’s subsidiary TEL contracted China Development Bank as the lead arranger for overseas funding from China and Habib Banking Limited (HBL) as the lead arranger for domestic financing.
The coal-fired power project is expected to commercial operation date by March 31st, 2021. Hubco presently produces 1,601MW via its three power plants in Narowal, Hub and Azad Kashmir.
Also, Hubco is the only power producer in the country that has interests in three projects listed in the China-Pakistan Economic Corridor (CPEC) namely Sindh Engro Coal Mining Company Limited developing Block-II of Thar Coal Field and Thar Energy Limited and imported coal-based China Power Hub Generation Company (Private) Limited at Hub.
