Hubco announces equity injection by CMEC in its indigenous coal project
Pakistan’s largest independent power producer, The Hub Power Company Limited, has announced a capital investment of $3,930,000 by China Machinery Engineering Corporation into its subsidiary Thar Energy Limited, one of the first indigenous coal power projects at Thar Coal Block II.
The company has established Thar Energy Limited (TEL) to set up 330MW mine-mouth lignite-fired power plant. It has signed a shareholders’ agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC TEL Power Investments Limited (CMEC Dubai) for equity investment of 30% and 10% 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 1,601 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.