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

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 power plant.

The Hub Power Company Limited (Hubco) along with other equity partners have signed financing documents for its 330-megawatt Thar Energy Limited power project during the Joint Coordination Committee (JCC) meeting in Beijing on Thursday.

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

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

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