With Chinese assistance, plant will generate 1,320MW of electricity. PHOTO: REUTERS
The second coal-fired power plant of Hubco will generate 1,320 megawatts from two 660MW units. Coal will be imported from Indonesia and South Korea.
Hub Power Company (Hubco) will have a 24% stake in the power plant while a Chinese company will have 74% shareholding. Additionally, 2% stake has been reserved for the Balochistan government. Most of the finances are offered by Chinese banks.
Balochistan gears up for 1,320MW coal-fired plant
The coal power plant had been declared a priority project under the China-Pakistan Economic Corridor (CPEC). A jetty and coal transshipment facilities are under construction, which will ensure uninterrupted coal supply to the power plant.
China’s role
State Power Investment Corporation (SPIC) is one of the five state-owned power generation companies and one of the three approved nuclear power developers in China.
The company is supposed to use superior technology and produce clean energy. It has the experience of producing electricity through thermal, hydel, LNG, wind, solar and biomass waste-to-energy sources.
Hubco, which has total assets of $1.279 billion, is believed to be supplying electricity to 400 million households. The estimated production cost per unit of electricity will be around 8 cents, much below the national level.
Iqbal explained that recent economic development in Pakistan was making CPEC a reality. “CPEC was merely an MoU with China signed by the prime minister during his first visit and now it has become a colossal project.”
Iqbal claimed that CPEC was the biggest investment portfolio in the entire region, which would definitely be a game changer. “Without electricity, no development is possible and that is why the government has laid greater emphasis on power generation and ending load-shedding in all parts of the country.”
The federal minister said no country or major companies were prepared to make any investment in Pakistan and in two years, there was massive inflow of foreign investment.
He praised China for changing the attitude of the world by making significant investments in Pakistan. “It was China that posed deep trust in Pakistan and considered it to be completely safe for foreign investment.”
Uplift of Balochistan
Iqbal reiterated the government’s policy pertaining to development of Balochistan, using CPEC funds and investments in uplift schemes and construction of a deep-water power plant under CPEC.
Listing some key projects for Gwadar, Iqbal said the 19km East and West Bay was being constructed for the Gwadar Port besides two coal-fired power plants, a new and modern airport and a water desalination plant to provide 50 million gallons of drinking water to residents of the city at a cost of Rs5 billion.
According to Iqbal, Pakistan will be among top 25 economies of the world by 2025 and the economy will expand and become the 20th largest economy by the year 2030.
He said that the government would ensure food, water and energy security and ensure regional connectivity.
Balochistan Chief Secretary Shoaib Mir, in his speech, praised efforts to produce energy at cheaper rates and specifically said per unit of electricity would cost only 8 cents, which was much lower and would help people make significant savings. He hoped that the company would abide by corporate social responsibility by generating more jobs for the local people and accommodating skilled and semi-skilled workforce in the area.
Hubco’s profit slides to Rs5.37b on lower sale of electricity
“The company is committed to spending 1% of the profit for social uplift of the region,” the chief secretary said.
“Balochistan government will fully support such efforts under the corporate social and economic responsibility in education, health and human resource development in a significant way.”
Mir welcomed the announcement to build a desalination plant in Gwadar to resolve the drinking water problem.
Published in The Express Tribune, March 22nd, 2017.
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