The Hub Power Company Limited, which Pakistan’s largest independent power producer (IPP), has announced an investment of $ 3,930,000 in its subsidiary Thar Energy Limited.
Thar Energy Limited is one of the first indigenous coal power projects at Thar Coal Block II.
The $ 3,930,000 investment in the coal-fired power project will be made by China Machinery Engineering Corporation (CMEC).
Hubco has established Thar Energy Limited (TEL) to set up 330MW mine-mouth lignite-fired power Plant. The Company has signed a Shareholders’ 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 in the project. The FFCL has already injected equity in the Company earlier this year.
TEL has engaged China Development Bank (CDB) 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 Operations Date (COD) of the coal project is March 31, 2021.
The Hub Power Company Limited currently produces 1601 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.
Hub Power’s total production, including the contribution from two other plants in Punjab and Azad Jammu and Kashmir, stands at 1,601MW, which makes it Pakistan’s biggest IPP that has a share of around 10 percent in total power production.
Hub Power, which has an installed capacity of 1,292MW, was the first IPP that went for expansion in 2011 and set up a 225MW plant in Narowal. It also set up country’s first hydel IPP of 84MW, called Laraib Energy, in AJK, which came online in 2013.