China-Pakistan Economic Corridor

Power Projects

Round Table on Energy

Serena Hotel, Islamabad
September 29th-30th, 2015
Nazoor Ali Baig

The Hub Power Company Ltd.

 Table of Contents

• What does CPEC mean to Pakistan?

• Our role to realize the benefits
• Power industry opportunities
• HUBCO project

The Hub Power Company Ltd.

 What does CPEC mean to Pakistan

• It is the most important business deal for the country

• Multi-year investment, worth USD 46 Billion
• Opportunities in Energy, Communications, Infrastructure,
Gwadar, Etc.
• Of the USD 46 Billion, 75% are planned for Energy sector
• Absolutely critical for the growth of Pakistan’s economy

The Hub Power Company Ltd.

 Our role in realizing the benefits (1/2)

• Both countries stand to gain from this opportunity.

However, it depends on the abilities of both parties and
how they are exploited
• Government’s ability to improve the processes and
regulations to remove barriers, allowing projects to move
efficiently and effectively
• Investors collaborating with the government to improve the
processes
• Government has and continues to play a key role in
providing support when it comes to financing these
projects

The Hub Power Company Ltd.

 Our role in realizing the benefits (2/2)

Pakistan’s play;
• Prominent investor’s ability to pull the resources for
these projects, with country’s future in forefront
• Pakistan has the Intellectual capital required to manage
this long journey, we need to stay focused
• This is a very good opportunity for knowledge transfer
for the future, invest in the younger generation
• Getting coal in the mix of fuels is the right move, need
to get cheaper fuel in the mix for global competitiveness
• Hard work and adaptability is what we are very capable
of, and, will be the key to our success

The Hub Power Company Ltd.

 Power Industry Opportunities

• This is the opportunity Pakistan has been waiting for to

launch its economy with efficient, reliable, and economical
power with stable grid
• Supported by infrastructure development for fuel
transportation and grid stability
• Once the grid is stable, and with capacity meeting demands
(i.e. reserve margin), along with the choice of fuel(s), one
can think of market based pricing
• There are a number of projects on the horizon, and there
will be challenges with each. Our goal should be to
collaborate and learn from each other

The Hub Power Company Ltd.

 HUBCO Project (1/3)

• Project is 2x660 MW plant with dedicated Jetty for coal

import, expandable to 6x660
• JV company formed with CPIH “China Power Hub
Generation Co.”
• One of the projects in “Actively Promoted Projects” list in
CPEC
• Started with 1x660 MW with seven bidders, now going to
resubmit proposals for 2x660

The Hub Power Company Ltd.

 HUBCO Project (2/3)

• Regulatory
i. LOI submitted
ii. Upfront tariff approval awaited
• Financial
i. Engagement of financial consultant
ii. Lead banks CDB & CEXIM
iii. Expected financial close Q2, 2016
• Technical
i. FSR completed
ii. RFP issued
iii. ESIA completed
iv. Jetty Options being evaluated

The Hub Power Company Ltd.

 HUBCO Project 3/3
• Key areas to focus on from technical perspective
– Safety
• Higher pressures and temperatures
• Explosive nature of pulverized coal
• Ash handling
– Availability of the plant
• Proven technology
• Redundancies
• Efficiency
• Grid stability
• Outage cycles
• Auxiliary loads
• Spares management
The Hub Power Company Ltd.