HUBCO 330MW Thar Energy Limited reaches financial close
Karachi (Muhammad Yasir) The Government of Pakistan has notified the achievement of Financial Closing by Thar Energy Limited (TEL), a subsidiary of Pakistan’s largest Independent Power Producer, The Hub Power Company Limited (Hubco) [at a ceremony chaired by Federal Minister for Energy, Mr. Umar Ayub Khan in Islamabad]. Hubco incorporated TEL to set up a 330MW mine-mouth lignite-fired power Plant, one of the first power project to utilize the local lignite at Thar Coal Block II for power generation and was joined by Fauji Fertilizer Company Limited (FFC) in 2018. While Hubco currently holds 60% of the equity in TEL, FFC is the second major investor with 30% equity stake while CMEC TEL Power Investments Limited (CTPIL) hold the balance 10% equity in the Project.
“The Company has engaged China Development Bank (CDB) as the lead arranger for the foreign financing from China and Habib Bank Limited as the lead arranger for the local financing. With strong and professional sponsors, we hope the Project would be completed within the allocated cost and time,” said Mr. Saleemullah Memon, CEO TEL.
Mr. Khalid Mansoor, CEO HUBCO said “Thar Energy Limited would be a game changer for Pakistan as it would indigenize the energy source for the Country. The Project being setup by TEL would be amongst the first of the series of Power Plants based on Thar Coal and would bring about substantial savings in foreign exchange of the Country.”
With the aim of Fueling lives through Energy, The Hub Power Company Limited has an installed capacity of producing over 2920MW through its four plants in Hub, Narowal and Azad Kashmir. The Company is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II.