US$1.5 B financing signed for 1320 MW coal-fired power in Pakistan
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China Power Hub Generation Company (CPHGC) has closed US$1.5 billion financing with a consortium of Chinese banks led by China Development Bank (CDB) and Exim Bank of China.
The consortium of banks will provide about 75% of the total project investment. So far, China Power International Holding Ltd (CPIH) has provided US$300 million as shareholder loan to suport project construction. The equity proportion of CPIH in CPHGC is 74% and the remaining 26% belongs to Hubco is 26%.
Project financing has been signed by CPIH, Hub Power Company (Hubco), CPHGC, CDB and Exim Bank of China representatives, as well as the other participating banks of the consortium, including Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications.
The total project investment is estimated at US$2 billion.
Located at Hub, Balochistan, the project is 45 kilometers northwest of Karachi. It involves the development of two 660 MW cola power plants along with a dedicated jetty to manage imported coal. Once operational, the project is expected to supply 9 billion kWh of electricity to the national grid annually, enough to meet the demand of around 4 million households.
We have recently reported about several energy projects in Pakistan:
