PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER & POWER

   
  NEWS/EVENTS

 

COAL BASED PRIVATE POWER PROJECT OF

1320 MW ACHIEVES FINANCIAL CLOSURE
26-JAN-2018
 
 

Islamabad, 26th January 2018: Financial Close of 1320 MW power plant at Hub has been achieved by China Power Hub Generation Company (Private) Limited. The company will establish 2 x 660 MW power plants at Hub, Balochistan. The Implementation Agreement (IA) and Power Purchase Agreement (PPA) of the project have been already signed on 25th January, 2017. The project is being implemented as "Prioritized Project" under the China-Pakistan Economic Corridor (CPEC), a game changer initiative for development of mega energy and infrastructure projects in the country.

 

The signing ceremony of Financial Closure was held at Private Power Infrastructure Board (PPIB) office Islamabad on 26th January 2018 which was attended by Mr. Shah Jahan Mirza, Managing Director, PPIB and Mr. Zhao Yonggang, Chief Executive of Project Company alongwith other senior officers of PPIB and Project Company/Sponsors. The sponsors of the Project are China Power International Holding and Hub Power Company Limited, Pakistan while the equity partners of the project are China Power International Holdings Limited and Hub Power Holdings Limited and the lenders consortium consists of China Development Bank, The Export-Import Bank of China, Industrial and Commercial Bank of China, China Construction Bank Corporation and Bank of Communications Co. Limited.

 

This project is one of the largest projects of CPEC which is being developed at a cost of US$ 2 billion and its first unit of 660 MW is targeted to start production by December 2018 while full commercial operations are targeted to be commenced by August 2019. It is a laudable fact that in order to ensure timely completion of Project, the Sponsors had started construction activities through own equity prior to achieving Financial Close. Due to the proactive approach of Project Sponsors, and the support provided by the Power Division and PPIB, construction activities are being undertaken at accelerated pace and so far considerable progress has been achieved in this regard. The plant would have least impact on environment as super critical technology is being employed which is the latest technology being adopted world-wide to address environmental concerns.     

 

The Project will be instrumental in socio-economic uplift of the remote areas of Hub/Lasbella besides generating employment opportunities for the local population. Today's achievement added another feat to the CPEC which has so far delivered 1320 MW Sahiwal and 1320 MW Port Qasim Power Projects in the recent past. Role of China in developing Pakistan's Power Sector particularly through CPEC is regarded with great respect while Hubco group has noticeable stakes in the Pakistan's power sector by owing 1292 MW, 220 MW IPPs, 84 MW hydro commissioned IPPs. Another 330 MW Thar Coal fired Power Project at Thar Block-II is also being implemented by Hubco Group under the banner of CPEC which is currently under construction and its Financial Close is expected soon.  

 

 

 
 
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