The Hub Power Company Limited (Hubco), along with other equity partners, have signed financing documents for its 330-megawatt Thar Energy Limited power project during the Joint Coordination Committee (JCC) meeting in Beijing on Thursday.
The company has engaged China Development Bank (CDB) as the lead arranger for foreign financing from China and Habib Bank as the lead arranger for local financing.
Hubco has established Thar Energy Limited (TEL) by partnering with Fauji Fertilizer Company Ltd and CMEC, to set up a 330MW mine-mouth lignite-fired power plant.
It’s one of the first power projects to utilize the local lignite at Thar Coal Block ll for power generation and has signed a shareholders agreement with Fauji Fertilizer Company (FFCL) and CMEC TEL Power Investment Limited (CTPIL) for equity investment of 30 percent and 10 percent, respectively, in the project.
The Engineering Procurement Construction (EPC) contract for the project has been signed with China Machinery and Engineering Corporation (CMEC) which has started preliminary activities on site to expedite the project construction and achieve the Commercial Operation Date during the first half of 2021.
Previously, Hubco announced it had completed its 37% acquisition of Thal Nova Power Thar (Private) Limited this month.
Hub Power Company Limited operates as an independent power producer in Pakistan. The company operates in two segments, power generation, and operations and maintenance. It develops, owns, operates, and maintains power stations.
Hubco shares were trading at Rs. 90.50, up Rs. 0.80, with a turnover of 1.35 million shares on Friday.