Thar Energy Limited (TEL), a subsidiary of Pakistan's largest Independent Power Producer, the Hub Power Company Limited (Hubco) has reached its financial close. Hubco in collaboration with Fauji Fertilizer Company Limited (FFC) established Thar Energy Limited (TEL), to set up a 330MW mine-mouth lignite-fired power Plant, one of the first power projects to utilise the local lignite at Thar Coal Block II for power generation. While Hubco currently holds 60 percent of the equity in TEL, FFC is the second major investor with 30 percent equity stake while CMEC TEL Power Investments Limited (CTPIL) hold the balance 10 percent equity in the Project.

"The Company has engaged China Development Bank (CDB) as the lead arranger for the foreign financing from China and Habib Bank Limited as the lead arranger for the local financing. With strong and professional sponsors, we hope the Project would be completed within the allocated cost and time," said Saleemullah Memon, CEO TEL.

Khalid Mansoor, CEO Hubco said, "Thar Energy Limited would be a game changer for Pakistan as it would indigenize the energy source for the Country. The Project being setup by TEL would be amongst the first of the series of Power Plants based on Thar Coal and would bring about substantial savings in foreign exchange of the country."

With the aim of Fueling lives through Energy, The Hub Power Company Limited has an installed capacity of producing over 2920MW through its four plants in Hub, Narowal and Azad Kashmir. The Company is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt) Ltd and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II.-PR