FFC, HUBCO Sign Agreement To Set Up 330 MW Coal Power Plant In Thar

Fauji Fertilizer Company Limited (FFC) and Hub Power Company Limited (HUBCO) Thursday entered into a strategic alliance to set up a 330 MW coal- based power plant in Thar.

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th Mar, 2018 ) :Fauji Fertilizer Company Limited (FFC) and Hub Power Company Limited (HUBCO) Thursday entered into a strategic alliance to set up a 330 MW coal- based power plant in Thar.The Shareholders Agreement (SHA) was signed amongst HUBCO, FFC and China Machinery Engineering Corporation (CMEC), a state owned enterprise from China in a ceremony held here, said a press release.The power plant, being a CPEC Project, would be built under a special purpose company,Thar Energy Limited (TEL), and based on indigenous coal to be mined from the coal fields of Thar Block-II in which HUBCO has an 8 percent equity stake.

Commenting on the Shareholding pattern of Thar Energy Limited, FFC Chief Executive Lt Gen (Retd.) Shafqaat Ahmed informed that FFC would hold 30 percent shareholding whereas China Machinery Engineering Corporation's share would be 10 percent and remaining 60 percent would be held by the HUBCO.

He expressed the confidence that this project would help address the power shortfall in the country utilizing local coal. CEO HUBCO Khalid Mansoor said Thar Mine 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. The FFC and HUBCO chiefs said they believed that this strategic partnership would open up new avenues of business growth, whereas the excellent financial position, credibility and best business practices of the two corporates would provide synergy and confidence for all the stakeholders.

CEO Thar Energy Limited Saleemullah Memon said with strong and professional sponsors backing the project would be completed within the allocated cost and time. FFC and HUBCO both are well reputed and internationally recognized corporate entities with extremely high business and financial credibility.

Financial close of the project is expected in June 2018, whereas the ground work on the site has already commenced and the project is expected to begin commercial production by December 2020.