HUBCO's receivables up at Rs 75bn against WAPDA

KARACHI: The receivables of Hub Power Company Limited (HUBCO) against WAPDA have piled up to Rs 75 billion on account of electricity purchase as of February 21, 2010 and of this Rs 69 billion is classified overdue or payable immediately.

According to HUBCO's communique sent to KSE here Monday, the board of directors of power Supply Company was told that as a result of WAPDA outstanding HUBCO owes Rs 68 billion to Pakistan State Oil (PSO) for fuel supply to the power plant.

The company's obligation to PSO remains covered by a Stand-by Letter of Credit of Rs8 billion provided by HUBCO to PSO under the Fuel Supply Agreement.

One of the consequences arising from this situation has been that the fuel supplied by PSO has been insufficient to meet the plant's minimum operational requirements.

HUBCO said that the company is in constant follow-up with WAPDA and the Federal Government for early release of the entire outstanding amounts.

In addition, WAPDA is unable to provide a Letter of Credit as required under our power purchase agreement (PPA) for an amount of Rs12.92 billion. The obligations of WAPDA under the PPA are secured through the Sovereign Guarantee of the Government of Pakistan under its implementation agreement with HUBCO.

HUBCO plant has operated at an average load factor of 76% and an average complex availability (ACA) of 877. Electricity sold to WAPDA was 2,012 GWh.

HUBCO said that its coming up 214 MW Narowal Project will be completed in February 2011.