Pakistan China ink accord for yet another power plant, one of the first from local coal

LAHORE – Pakistan and China have inked agreement for yet another powerplant.

The Hub Power Company Limited (Hubco) along with other equity partners havesigned financing documents for its 330-megawatt Thar Energy Limited powerproject during the Joint Coordination Committee (JCC) meeting in Beijing onThursday.

In a notification sent to the Pakistan Stock Exchange (PSX) on Friday,Hubco announced it had engaged China Development Bank (CDB) as the leadarranger for foreign financing from China and Habib Bank as the leadarranger for domestic financing.

Hubco in conjunction with Fauji Fertilizer Company Limited (FFCL) and CMEChas established Thar Energy Limited (TEL) to set up a 330MW mine-mouthlignite-fired power plant.

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This is one of the first power projects to use the local lignite at Tharcoal block II for power generation and signed a shareholder’s agreementwith Fauji Fertilizer and CMEC TEL Power Investments Limited (CTPIL) for anequity investment of 30% and 10% respectively in the project.