The Hub Power Company Limited, (حب پاور کمپنی لمٹیڈ) colloquially known as Hubco, is a Pakistani power company based in
Karachi, Sindh. It was the first
independent power producer (IPP) to establish in Pakistan and as of 2024 is the largest IPP with a combined installed power generation capacity of 3,581 MW.[2] The revenue of the company is
United States Dollars denominated.[3]
Hub Power Company (Hubco) was established in 1994 and was funded by $770 million in loan agreements and $325 million in equity from international investors.[6] The major investors included
National Power with 20.4 percent shareholding,
Xenel with 14.5 percent, and
Entergy with a 10 percent holding.[6][7]
Of the $770 million loan, Hubco secured a $686 million, 12-year credit facility organized by
Citibank and other major banks on September 30, 1994, which included a $36.9 million concessional loan from the
Commonwealth Development Corporation and $465 million from loans facilitated by the
World Bank-funded public-sector energy development fund, including $166 million in standby funds at an interest rate of 2 percent plus
Libor.[6][10] The company also obtained a local currency loan of Rs 3,012 million ($98.4 million) on October 2 in Karachi, arranged by the
National Development Finance Corporation and involving several Pakistani banks.[6]
By 1998, Hubco became the second largest listed company on the Karachi Stock Exchange by
market capitalization.[11]
In 2000, Hubco and its investors, including Entergy and National Power, agreed to forgive $200 million of the $274 million
debt owed by the
Water and Power Development Authority to Hubco. Hubco also reduced its
tariffs and
operation and maintenance contracts, resulting in savings of $140 million over the 27-year contract period.[12] These adjustments were made to manage the remaining $74 million required for loan repayments.[12] Previously, Entergy had filed a lawsuit against WAPDA in the
International Court of Arbitration which was withdrawn following a settlement.[13] The lawsuit sought approximately $8 billion in damages over the 30-year life of the independent power project.[13] The claim was filed in response to WAPDA's withdrawal from the
power purchase agreement, which was based on allegations of
corruption involving former Hubco's
business executives.[13]
In 2008, Hubco acquired a 75 percent stake in Laraib Energy and initiated an 84MW run-of-river hydroelectric power project downstream on the
Mangla Dam.[14] In 2013, Laraib Energy's New Bong Hydropower Plant commenced commercial operation.[15]
In 2011, Xenel exited Pakistan and sold its stake of 140 million shares (12.3 per cent) at a price of Rs37 per share.[16] A year later, National Power UK divested its 17.44 percent shareholding to
Dawood Hercules and
Allied Bank Limited at PKR 31 per share.[17]
In 2013, Hubco incorporated its oil-fired Narowal Power Plant as its wholly-owned subsidiary.[18]
In 2017, Hubco delisted its GDR from the Luxembourg Stock Exchange due to low trading volumes.[19]
In 2018, Dawood Hercules divested its 15.7 percent shareholding to Mega Conglomerate at PKR 105.12 per share.[20][21]
In 2019, the China Power Hub Generation Company (CPHGC) commissioned a 1.32GW coal-fired thermal power plant.[22] The $2 billion facility is now fully operational and is owned by CPHGC, a
joint venture between Hubco and China Power International.[22] Hubco holds a 74 percent stake in the venture, while China Power International owns the remaining 26 percent.[22]
In 2022, Prime International, a joint venture of Hubco, acquired Eni Pakistan.[23]
Group Structure
Subsidiaries
Narowal Energy Limited (NEL): Wholly owned by HUBCO. It manages and operates the Narowal Power Plant[24][4]
Hub Power Services Limited (HPSL): Wholly owned subsidiary of HUBCO
Hub Power Holdings (HPHL): Incorporated to invest in future growth projects
Thar Energy Limited (TEL): HUBCO has 60% shareholding in TEL which is setting up a 330-megawatt (MW) Thar Lignite Coal-based mine mouth Power Plant and is a part of the China-Pakistan Economic Corridor (CPEC)
Laraib Energy Limited (LEL): HUBCO owns 74.95% of LEL which is the owner and developer of the New Bong Escape Power Project[4]
Associates
China Power Hub Generation Company (CPHGC) is the project company for the development, construction and operation of 2×660 MW Coal-fired Power Plant in Hub, Balochistan near the Hub plant. HUBCO has 46% stake in CPHGC[4]
Sindh Engro Company Limited (SECMC) is an open-pit mining company in which HUBCO has 8% stake[4]
ThalNova Power Thar (Pvt.) Ltd. is a 330 MW mine-mouth lignite fired power plant in which HUBCO has acquired majority shares[25]
Operational plants
Hub Plant (1,292 MW) is located 60 km from Karachi in Hub. The electricity at Hub is generated by four 323 megawatt oil-fired units that are supplied by a 78 km long pipeline from
Pakistan State Oil. It consists of four generating units, each unit has capacity of 323 MW gross output, with an oil-fired single re-heat boiler and tandem compound and two cylinder condensing steam turbines directly coupled to a hydrogen cooled generator.[26]
Narowal Power Plant (225 MW) located in Narowal, Punjab consists of 11 generating sets, 11 Alborg Heat Recovery Steam Generators and one air cooled condensing Steam Turbine from Dresser Rand.[24]
New Bong Escape Power Project (84 MW), located in Mirpur, Azad Jammu& Kashmir, commenced commercial operations on 23 March 2013 and has the distinction of being Pakistan and
AJ&K's first hydropower
IPP. The Project uses the water discharged from an upstream already existing hydropower plant located at Mangla Dam.[27]
China Power Hub Generation Company (CPHGC) Power Plant(1320 MW) is an imported coal-based plant supplying energy to the national grid and located at Hub. The CPHGC plant consists of two generating units each rated at 660 MW Gross, with each unit having GE supercritical boilers, steam turbine and generator sets.[4][28]
Thar Energy Limited (TEL) Project is a lignite-based 330 MW project. The project achieved commercial operations on 10th October, 2022.
ThalNova Power Thar is also a 330 MW mine-mouth lignite-fired power plant similar to TEL. Commercial operations of the project commenced in February 2023.
Other projects
Sindh Engro Company Limited (SECMC) has developed a coal mine at Thar which has the seventh largest reserves of coal in the World. SECMC achieved Commercial Operations for Phase I in July, 2019 and will be embarking to double its coal mining capacity to supply fuel to HUBCO's Thar Energy Limited and ThalNova projects which are under construction.[29]
Prime International Oil & Gas Company a newly established joint venture (JV) between Eni Pakistan local employees and Hub Power Company acquired Eni's assets in Pakistan. These assets include interests in eight development and production leases and four exploration licences.