Friday, January 23, 2015

Hubco plans to set up 3,600 MW coal power plants at Hub Balochistan

To generate cheaper electricity, Mr Khalid Mansoor CEO of Hub Power Company (Hubco) CEO has observed a potential of 3,600MW coal-based power plants at Hub Balochistan.

Mr Mansoor said that “We can construct 3,600 MW coal-based power plants at Hub and LNG based plants should be set up in Punjab following dip in prices.”

Hubco’s Board of Directors has given its management the mandate to develop two coal-based power plants each with 660 MW generation capacity on imported coal-based power plant and coal jetty.

He said that Chinese banks and the Pakistani government had agreed to set up ESCROW account with ‘revolving fund’ to maintain money equal to one month invoice to avoid the payment hindrances due to circular debt in power sector for extending loans for Thar coal project.

He added that Chinese lenders had accepted government guarantees after the setting up revolving fund during visit of Finance Minister Mr Ishaq Dar to China. The regulator National Electric Power Regulatory Authority had capped upfront fee for Sinosure at 7%, but because of the presence of circular debt, the company asked for a fee of 9% for credit risk insurance.

He further added that “Now, China has agreed to cap fee at 7% and therefore this issue has been resolved.”

Source – Customs Today

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