Islamabad August 23, 2022: ThalNova Power Thar Private Limited has achieved the momentous milestone of successfully achieving synchronization with the national grid.
The successful transmission of the first electron to the national grid demonstrates HUBCO’s resolve to ensure the energy security of the country. This significant
development is another milestone that we have successfully achieved in our endeavors to provide uninterrupted power to the country and brings the project closer to its completion.
The ThalNova Power Thar Limited Power Plant is a 330 MW mine-mouth lignite-fired power plant at Thar Coal Block II Sindh and is a part of the China Pakistan Economic Corridor (CPEC).
The Project is a joint venture among Hub Power Company Limited (HUBCO), Thal Limited, Novatex, CMEC, and Descon.
The Debt has been arranged with a syndicate of a foreign and local group. The First and major sponsors of Debt are Chinese lenders with the consortium of China Development Bank (CDB), China Minsheng Banking Corporation Limited, and China Zeesheng Bank funding ~70% of the total debt which equates to USD 264mln and is priced at 6MLIBOR plus 4.05% per annum. The rest of the project debt (30%) is financed by a consortium of local banks being led by Habib Bank Limited and is priced at 3MKIBOR plus 3.5% per annum. Principal repayment shall be made in 20 semi-annual payments.
Sponsor’s equity to ensure timely Commercial Operation Date (COD) and begin utilizing the local resource of Thar coal as soon as possible.
The Project has now successfully reached its commissioning phase and the COD is expected by the end of September/October 2022.
The ThalNova Power That Private Limited Plant utilizes indigenous Thar coal, which is sourced through Sindh Engro Coal Mining Company (SECMC), is a joint venture initiative of which HUBCO is also a shareholder. The utilization of indigenous fuel is a development that will further aid in revolutionizing the Pakistani energy sector.
The utilization of local fuel will enable the nation to become proficient in supporting its own energy needs through local resources rather than allocating funds to the import of fuel, which will significantly decrease the country’s import bill.
The indigenous fuel is also a more economically feasible source of power. Together, these factors will greatly alleviate the country’s financial burden in the current time of global economic crisis.
The ThalNova power plant has created numerous direct employment opportunities for the locals of Thar and adjoining communities. ThalNova and TEL, another similar power plant HUBCO is setting up, jointly employ over 3,700 locals for their construction phases. In the future, we endeavor to continue creating such opportunities for local employment.
