Hubco partners with China Power to tap plants’ O&M market

KARACHI: The Hub Power and China Power International have executed an agreement to form a joint venture company to tap the power plants’ operation and maintenance (O&M) services market, with its first client being the China Power Hub Generation Company (CPHGC), a 2x660MW coal-fired plant located in Hub.

“The Hub Power Holdings Limited (HPHL), a wholly-owned subsidiary of the Hub Power Company Limited (Hubco) together with China Power International Maintenance Engineering Company Limited (CPIME), a subsidiary of the State Power Investment Corporation (SPIC), has executed a joint venture agreement (CPIME 51 per cent; HPHL 51 per cent ratio),” a bourse filing said.

“By virtue of this JV [joint venture] agreement, HPHL and CPIME are establishing a joint venture in Pakistan to explore opportunities, inter-alia, to provide operation, maintenance and other services to CPHGC and to provide services to such other customers as may be mutually agreed.”

CPHGC is a 1,320MW imported coal-based power plant operation with an integrated coal jetty situated in Hub. CPHGC started its commercial operations in August 2019 and provides energy to over four million households.

The Hub Power Company has established wholly-owned subsidiaries for its future growth initiatives. The Hub Power Holdings Limited (HPHL) was incorporated to invest in the future growth projects. Hub Power Services Limited (HPSL), manages O&M of existing power assets and is preparing to undertake O&M of imported and indigenous coal-based growth projects, in addition to exploring other onshore and offshore business opportunities.

Pakistan’s economic recovery was stronger-than-expected. A significant improvement in all the major economic indicators was observed, leading to an improvement in the overall business environment.

Despite the pandemic-related economic slowdown observed earlier, there was an increase in the country’s electricity off-take.

“[The] Hub Power is optimistic about the future of the power sector and expects accelerated settlement of over dues of the company, which will alleviate [the] current liquidity crunch. The company also looks forward to robust rectification of the transmission and dispatch infrastructure, improvement in recoveries and timely payments to the power producers; which will eventually alleviate the prevailing challenges of the power sector,” Hubco’s CEO noted in the last annual report.