HUBCO’s CPEC-linked Thar power projects reach completion

The Hub Power Company Limited (HUBCO), ‘Pakistan’s largest Independent Power Producer (IPP), announced that lenders of its associated Thar-based power projects — Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN) — have formally declared the occurrence of the Project Completion Date (PCD) for both 2x330MW coal-fired power plants on October 31, 2025.

The IPP disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“TEL and TN are both mine mouth coal-fired IPPs operating in Thar, which successfully achieved Commercial Operations Date on October 1, 2022 and February 17, 2023, respectively,” read the notice.

TEL is a 330MW mine-mouth coal-fired power plant located at Thar Block II. HUBCO owns a 60% stake in the company.

Meanwhile, TN is also a 330 MW mine-mouth coal-fired power plant established at Thar Block II, Thar Coal Mine, Sindh. HUBCO, through its wholly owned subsidiary, Hub Power Holdings Limited (HPHL), presently holds 38.3% shares in TN.

“Both projects are recognised as priority projects under the China-Pakistan Economic Corridor,” HUBCO shared.

According to the company, the declaration of PCD for both TEL and TN “is a monumental occasion” as it will enable TEL and TN to pay dividend to its shareholders subject to availability of distributable profits and completion of procedural approvals.

“The achievement of PCD further demonstrates Hubco’s commitment to protect the interests of its shareholders and give them the best possible value,” added the notice.

Back in August, HUBCO approved the provision of financial guarantees worth up to $51 million to support TEL and TN.

The company’s shareholders passed resolutions authorising guarantees — in the form of standby letters of credit — of up to $31 million for TEL and up to $20 million for TN to cover funding shortfalls through equity and/or subordinated debt.