HUBCO says CPHGC’s 2x660MW power plant declared ‘project complete’

Hub Power Company (HUBCO) on Thursday said that the China Power Hub Generation Company (Private) Limited’s (CPHGC) 2x660 MW power plant has been declared ‘Project Complete’ by CPHGC’s lenders .

In a notice to the Pakistan Stock Exchange (PSX), the company said “we are pleased to inform you that China Power Hub Generation Company (Private) Limited’s (CPHGC) 2x660 MW power plant has been declared “Project Complete” by CPHGC’s lenders on February 23, 2023 (Project Completion Date or PCD)”.

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CPHGC was formed in September 2015 by the Hub Power Company (HUBCO) and its Chinese partner, China Power International Holdings Limited, to develop, construct and operate a 2x660 MW coal fired power plant at the Hub Plant Site in Balochistan.

As per the announcement, the project successfully achieved its commercial operations date (COD) effective August 2019. HUBCO through its wholly owned subsidiary, Hub Power Holdings Limited, owns 47.5% of the shares of CPHGC.

The project is recognised as one of the priority projects under the China Pakistan Economic Corridor, said the notification.

“The declaration of PCD is a monumental occasion for HUBCO as it releases the company from its obligation to maintain a $150 million standby letter of credit. This will also enable CPHGC to pay dividend to its shareholders subject to availability of distributable profits.”

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The achievement of PCD further demonstrates HUBCO’s commitment to protect the interests of its shareholders and giving them the best possible value, the company said.

Last year, CPHGC sought Rs167 billion from the government to procure coal for five months (August-December 2022) from South Africa as coal supply from Afghanistan is considerably less than the agreed quantity.

CPHGC is a 2x660-MW coal fired power plant with a dedicated coal import jetty located in Hub Balochistan. The $2 billion IPP is a priority CPEC project that is supplying electricity to millions of Pakistani households.