February 23, 2023 (MLN): China Power Hub Generation Company's (CPHGC) 2×660 MW coal-fired power plant has been declared "Project Complete" by the company's lenders on February 23, 2023, the notification issued by The Hub Power Company Limited (HUBC) to PSX revealed today.
This marks a significant milestone for the joint venture between Hub Power Company and China Power International Holdings Limited, as the project achieved its Commercial Operations Date in August 2019.
The power plant is located at the Hub Plant Site in Balochistan and is recognized as one of the priority projects under the China Pakistan Economic CorridorHub Power Holdings Limited, a wholly-owned subsidiary of Hub Power Company, owns 47.5% of the shares in CPHGC.
The declaration of Project Completion Date (PCD) is a significant occasion for Hubco, as it releases the company from its obligation to maintain a $150 million standby letter of credit. Furthermore, CPHGC can now pay dividends to its shareholders subject to the availability of distributable profits.
The declaration of PCD underscores Hubco's commitment to safeguarding the interests of its shareholders and delivering value to them.
This achievement also highlights the company's capability to successfully complete major power projects in the region, in line with the government's vision of achieving energy security for Pakistan.
