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China Power Hub Generation 2×660MW Coal-fired Power Project
Special Report on CPEC Projects (Energy: Part 8)

1. Brief introduction

China Power Hub Generation Company (Pvt.) Limited (CPHGC), is a joint venture with equity proportion of 74% from China Power International Holding Limited and 26% from Hub Power Company Limited (HUBCO) at present. It planned to construct 2×660MW supercritical coal fired units, located in Hub, Balochistan (55km from the northwest of Karachi). This project will use imported coal, and the electricity generated will be fully transmitted by Pakistan National Transmission and Dispatch Company (NTDC). The total investment of the project is estimated to be USD 1.995billion, including power plant and dedicated jetty. It is financed by a consortium of Chinese banks, with the debt equity ratio of 75%:25%. Once completed, it will be one of the largest imported coal power project in Pakistan.

2. Latest progress

The project has achieved substantial progress: all the official documents have been obtained from Pakistan government, including Letter Of Support (LOS), Environmental Social Impact Assessment (ESIA) approval, Land Transfer No Objection Certificate (NOC) etc. Power Purchase Agreement (PPA) and Implementation Agreement (IA) have been initialed. Meanwhile, Engineering procurement and construction (EPC) contract for Power Plant and Jetty have been signed. In order to meet the requirements of Pakistan government about the construction schedule, it started the construction with equity in August 2016. By the end of December, 2016, temporary construction works at site and first concrete pouring for the boiler foundation have been completed. In December 2016, CPEC Joint Cooperation Committee decided to include the two units of CPHGC project with total capacity of 1320MW as a “prioritized project”. The project is expected to achieve financial close by August, 2017. The first unit will be synchronized at the end of 2018. The whole plant will achieve Commercial Operation Date (COD) by August, 2019.

3. Corporate social responsibility

CPHGC has been always committed to promoting community economic development, local infrastructure construction, and community employment. It would provide over 2000 jobs for local workers. Moreover, it adopts the international state-of-art power generation technology and equipment, and ensures all kinds of emission indexes are much lower than the requirements mentioned in ESIA ratification and local standards. CPHGC regards “Harmony (Hé)” as corporate culture, strives for win-win cooperation and joint development.

In 2016, CPHGC donated Rs.10.32million to Hunar Foundation, financing 30 students from Hub area to conduct skills training for 12 months (including tuition fees, lodging, food and others). CPHGC together with Hunar will jointly provide international standard professional trainings to the students. In 2017, CPHGC will also provide funds for local education and infrastructure development.

(Abbie Yang, Executive Assistant to CEO, China Power Hub Generation Company (Private) Ltd.)

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