Karachi: Pakistan’s largest fertilizer producer, Fauji Fertilizer Company Limited (FFC) and Pakistan’s largest IPP the Hub Power Company Limited (HUBCO) have entered into a strategic alliance to set up a 330 MW Coal based Power Plant in Thar. The Shareholders Agreement (SHA) was signed amongst HUBCO, FFC and China Machinery Engineering Corporation (CMEC), a state owned enterprise from China in an event held in Islamabad.
The power plant, being a CPEC Project, will be built under a special purpose company, Thar Energy Limited (TEL), and will be based on indigenous coal to be mined from the coal fields of Thar Block-II in which HUBCO has an 8% equity stake.
Commenting on the Shareholding pattern of Thar Energy Limited, Lt Gen Shafqaat Ahmed, HI (M) (Retd), CE&MD FFC informed that FFC will hold 30% shareholding whereas China Machinery Engineering Corporation will hold 10% and remaining 60% will be held by HUBCO. He assured that this project will help address the power shortfall in the country utilizing local coal, which is also a major goal of the current Government besides adding value to the Company’s long term investments in the best interest of its shareholders.
Khalid Mansoor, CEO HUBCO said Thar Mine would be a game changer for Pakistan as it would indigenize the energy source for the Country. The Project being setup by TEL would be amongst the first of the series of Power Plants based on Thar Coal and would bring about substantial savings in foreign exchange of the Country.
CE&MD FFC and CEO HUBCO added they believe that this strategic partnership will open up new avenues of business growth, whereas the excellent financial position, credibility and best business practices of the two corporates will provide synergy and confidence for all the stakeholders.
Saleemullah Memon, CEO TEL on the occasion said that with strong and professional sponsors backing the Project he was sure that the Project would be completed within the allocated cost and time.
FFC and HUBCO both are well reputed and internationally recognized corporate entities with extremely high business and financial credibility.
Financial close of the Project is expected in June 2018, whereas the ground work on the site has already commenced and the project t is expected to begin commercial production by Dec 2020.