China Power Hub Generation Co. Ltd (CPHGCL) has raised a US$1.5 billion loan from a consortium of Chinese banks led by China Development Bank (CDB) to develop a 1,320-MW coal-fired TPP at Hub in Western Pakistan.
CPHGCL is a joint venture between China Power International Holding Limited (CPIH, 76%) and Hub Power Company Limited (Hubco)of Pakistan (24%).
“The financing documents for the 2x660-MW project were signed by Hubco, CPIH and the CDB-led consortium of Chinese lenders in Chengdu [China] on October 24,” said HUBCO chief executive officer Khalid Mansoor.
The Chinese loan covers 75% of project costs, which are estimated at US$2 billion. The remaining US$500 million is to be provided by the promoters as equity.
The project involves building two coal-fired 660-MW unit at Hub River estuary in Baluchistan Province. It will produce 9 billion kWh per year and consume 3.8 million tonnes per year of coal.
A dedicated jetty is to be constructed near the plant to import coal from countries such as Indonesia and South Africa.
The engineering procurement and construction (EPC) contract for the project has been awarded to a consortium of China’s Northwest Electric Power Design Institute (NWEPDI) and Tianjin Electric Power Construction Company (TEPC).
The contractor will source two units supercritical steam turbines, boilers and generators from GE.
Pakistan's state-run National Transmission & Despatch Company (NTDC) is to build a 220-km, 500-kV transmission line from the new TPP to the Matari substation to send the plant’s output to the national grid.
The joint venture said it aims to begin generation in the second half of 2019. It then plans to expand the Hub TPP to 3,960 MW at the later stage.
The Hub TPP is being developed as part of the US$46 billion China-Pakistan Economic Corridor Project, which is designed to connect Kashgar in northwest China's Xinjiang Uygur Autonomous Region with Gwadar Port in west Pakistan through a number of transport and energy links.
Pakistan currently faces a power supply shortage of over 4,000 MW. It generates around 18,900 MW, while demand runs at 23,000 MW.