KARACHI, Feb 27: The Hub Power Company Limited (Hubco) has held talks with the National Electric Power Regulatory Authority (Nepra) in regard to tariff structure of the company’s new power plant, the chief executive of Hubco Mr Javed Mahmood told Dawn in answer to queries on Wednesday.

He dispelled rumours that the company had decided to put the project on the hold or to call it off altogether.

“We are absolutely committed to Pakistan” and would “like to expand our activities in this country,” Mr Mahmood emphasised.

He said work on the company’s new 225MW power project being set up in Narowal, Punjab, was progressing as per schedule.

The company CEO said that following the determination of tariff, other matters, such as Power Purchase Agreement (PPA), fuel price agreements and financial close would be settled.

The company had asked for tariffs offered to competing new Independent Power Projects (IPPs) — such as Atlas Power.

Hubco already operates the country’s biggest independent power plant (IPP) with net capacity of 1200 MW located in Hub.

Late last year, Hubco received approval for the 225MW Narowal plant, which analysts estimate would be set up at a cost of around US$250 million and would come online by fiscal year 2010.

Yasir Shafi, an analyst at the BMA Capital in his recent report, mentioned that Hubco was also interested in hydro-based power project and it was expected to be a part of a consortium to build a 1000-1200MW imported coal-based power plant.

Further details about it could not be confirmed from the Hubco CEO on Wednesday, as he had been intruded long enough, while in the midst of a meeting.