Financing deal signed for 330MW power project

Thar Energy will consume domestic lignite coal

LAHORE: Fauji Fertiliser Company (FFC), along with other equity partners including Hub Power Company (Hubco), has signed a financing agreement for its 330-megawatt power project, Thar Energy Limited, at the 8th Joint Coordination Committee (JCC) meeting in Beijing.

China Development Bank was appointed lead arranger of foreign financing and Habib Bank Limited was selected lead arranger of local financing.

Federal Minister for Planning Khusro Bakhtiar, Sindh Chief Minister Syed Murad Ali Shah, Hubco Chief Executive Khalid Mansoor, Thar Energy Chief Executive Saleemullah Memon were present at the signing ceremony.



Thar Energy was established to develop a 330MW mine-mouth lignite-fired power plant, one of the first power projects that would consume indigenous lignite coal from Thar coal block-II for power generation.

The engineering, procurement and construction (EPC) contract for the project was signed with China Machinery and Engineering Corporation (CMEC), which began preliminary work on the site to accelerate project construction and achieve the commercial operation date (COD) in the first half of 2021.

FFC holds 30% equity stake in Thar Energy whereas Hubco and CMEC TEL Power Investments (CTPIL) have 60% and 10% shareholding respectively as per the shareholders’ agreement signed between the three sides.

Hubco currently produces 1,600MW through its three plants in Hub, Narowal and Azad Kashmir, roughly generating 8% of the total power generation in the country.