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 Pakistans 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
Governments 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)

Pakistans play;
Prominent investors ability to pull the resources for
these projects, with countrys 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.