ISLAMABAD – To generate cheaper electricity, Hub Power Company (Hubco) Chief Executive Officer Khalid Mansoor has observed a potential of 3,600 Megawatt (MW) coal-based power plants at Hub Balochistan.
Addressing a press conference here, the Hubco CEO said, “We can construct 3,600 MW coal-based power plants at Hub and LNG based plants should be set up in Punjab following dip in prices.” Hubco’s Board of Directors has given its management the mandate to develop two coal-based power plants each with 660 MW generation capacity on imported coal-based power plant and coal jetty.
The CEO added that Chinese banks and the Pakistani government had agreed to set up ESCROW account with ‘revolving fund’ to maintain money equal to one month invoice to avoid the payment hindrances due to circular debt in power sector for extending loans for Thar coal project.
He claimed that Chinese lenders had accepted government guarantees after the setting up revolving fund during visit of Finance Minister Ishaq Dar to China. The regulator National Electric Power Regulatory Authority had capped upfront fee for Sinosure at 7%, but because of the presence of circular debt, the company asked for a fee of 9% for credit risk insurance. “Now, China has agreed to cap fee at 7 per cent and therefore this issue has been resolved,” he added.
