KARACHI: Hub Power Company Limited (Hubco) is mulling to almost double its stake in an estimated two billion dollars of imported coal-run power project, touted as the biggest one in the China Pakistan Economic Corridor(CPEC) initiative.
“Hubco now intends to increase its shareholding in China Power Hub Power Generation Company (Pvt) Limited (CPHGC), through its wholly-owned subsidiary Hub Power Holdings Limited from 26 percent to 47.5 percent,” Hubco said in a statement on Thursday to the Pakistan Stock Exchange.
“The increase in shareholding will be subject to corporate and regulatory approvals in China and Pakistan.”
CPHGC is a joint-venture between Hubco and China Power International Pakistan Investment Limited to set up two 660 megawatts of imported coal-based power plants in Hub, Balochistan. The latter currently holds majority 74 percent shareholding in the power project that also envisaged a dedicated coal jetty. Both the companies have agreed the valuation.
In January, CPHGC achieved the financial close for its two billion dollars worth of coal power project with 1,320 megawatts of production capacity and a jetty.
CPHGC is one of the largest CPEC projects estimated at more than $50 billion.
Located in Hub, Balochistan – 45 kilometres northwest of Karachi, the power project will provide nine billion kilowatt-hours of electricity to the energy grid every year during commercial operations, which will meet the electricity needs of four million households in Pakistan. The coal power project is expected to start operation in August 2019.
Two months back, the project achieved a major milestone by interconnecting with the national grid, subsequently achieving back energisation of its 500 kilovolts (kv) gas insulated switchgear from Jamshoro side of the transmission lines. With this achievement, the CPHGC officially entered into hot commissioning phase of the complex that would lead to synchronisation of its first unit with the national grid in December.
The process of power back-feeding was completed after a series of key steps such as line connection, site acceptance tests, high pressure test of gas insulated switchgear, injection test and inter-tripping test all witnessed by relevant regulatory authorities.
After energising the 500kv system, the CPHGC achieved energisation of start-up transformer and 10kv auxiliary power system, and preparing for the system commissioning of unit 1.
The milestone was achieved in collaboration with the production and technology departments of CPHGC and National Transmission and Dispatch Company.
