KARACHI, May 24: The Hub Power Company Ltd on Saturday, made representations before the National Electric Power Regulatory Authority (Nepra) for consideration of the company’s application for grant of a generation licence in respect of its 1,292 megawatt power generation facility located on the Hub River Estuary, Balochistan.
A press release issued by the company said that at the public conference held in Islamabad on Saturday, Hubco’s chief executive officer (CEO) Mr. Vince Harris was accompanied by senior management of the company including Mr. S. Khalid Masood, finance director, Sardar M. Yusuf Khan, corporate affairs adviser and resident director of Xenal Group and Mr. Arshad A. Hashmi, company secretary.
Mr. Harris was said to have urged Nepra to expedite the licensing process in order to bring certainty in the power industry. “He stressed that Nepra must make the draft generation licence circulated by it compliant with not only the Nepra Act and the rules made under it, but also with the existing documents and agreements forming part of the company’s security package under the company’s Implementation Agreement with the Government of Pakistan”, the company said.
The Hubco CEO was stated to have observed that oversight of that important concern could give rise to grave consequences under the Security Package and adversely impact the general investment outlook. “Lenders to the company share these concerns”, Mr. Harris said, and added that the company believed that other private sector power producers also shared those concerns.
Hubco stated that Mr. Harris concluded his representation to the Authority with a short documentary on the company’s operations and its contributions to Pakistan and the local economy and its role in the support and development of local and national uplift programmes in education, health and social welfare.
It was observed that the Hubco project was initiated by Xenel of Saudi Arabia in 1985 following Government of Pakistan’s policies designed to address the acute shortfall in electric power supply in the country. The plant, which is the largest private sector power producer in the country, commenced operations in 1996. Aggregate investment of over $1.6 billion was made in the project, coming from Saudi Arabia, UK, USA, Japan, Singapore and supported by the World Bank, export credit agencies of various countries and a consortia of international and domestic lenders.
The company press release said that Mr. Khaliq-uz-zaman Khan, Barrister-at-Law, presented the company’s case for grant of generation licence and added that through a slide presentation, he highlighted salient features of company’s application and its fundamental concerns and those of its investors and lenders on the draft generation licence circulated by Nepra. “He urged Nepra to amend the draft so that it is consistent with not only the law but also with the company’s Security Package and suggested appropriate amendments for Nepra’s attention and approval”, the company said.
The Authority was chaired by Mr. Sardar Mohammed Sharif and comprised Mr. Abdul Rahim Khan, Mr. Mansoor Elahi and Mr. Fazullah Qureshi.
Hubco press release in conclusion stated that the public conference was well attended and included participants from government, Wapda, civil society groups and the Press.