KARACHI: Hub Power Company Ltd (Hubco) said that China Machinery Engineering Corporation (CMEC) proposes to plough capital investment of $3.93 million in its subsidiary Thar Energy Limited (TEL).

Hubco established TEL subsidiary to set up a 330MW mine-mouth lignite-fired power plant at estimated cost of $525m. The company has signed a shareholders’ agreement with Fauji Fertiliser Company Ltd (FFCL) and CMEC TEL Power Investments Ltd (CMEC Dubai) for equity investment of 30pc and 10pc respectively. Hubco holds 60pc stale in the project.

TEL has engaged with China Development Bank as the lead manager to assist with funding from China and with Habib Bank Ltd as lead arranger for local financing. The expected commercial operations date of the coal project is March 31, 2021.

Hubco generates 1,601MW from its three plants in Hub, Narowal and Azad Kashmir. The company is the only power producer having interests in three projects associated with the CPEC, including imported coal-based China Power Hub Generation Company Ltd at Hub, Sindh Engro Coal Mining Company Ltd developing Block-II of Thar Coal Field and TEL.

Published in Dawn, October 4th, 2018