HUBCO Narowal Power Project

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In March 2009, the 225 MW, greenfield HUBCO Narowal Project, which was being developed by Hub Power Company Ltd. (Hubco) at Narowal, Punjab, reached financial closure. Hubco's major shareholders were International Power (17%), Xenel (12%) and Fauji Foundation (9%). The project was developed on a build, own and operate (BOO) basis. Hub Power Company Ltd. initiated the project by means of an unsolicited proposal to Pakistan's Private Power and Infrastructure Board (PPIB). On May 16, 2007, the PPIB issued a Letter of Approval to Hub Power Company Ltd. to establish the 225 MW RFO-fired IPP in combined cycle configuration. The PPIB’s approval was formalized in a Letter of Support issued on June 10, 2008.On June 23, 2008, Pakistan's National Electric Power Regulatory Authority (NEPRA) approved a generation tariff, valid until March 2035, for the project. On October 27, 2008, an implementation agreement (IA) was signed. Following this, in Nov. 2008, Hub Power Company Ltd. signed a power purchase agreement (PPA), valid until 2035, with the Water and Power Development Authority (WAPDA). According to PPIB, the project reached financial close in March 2009. The total project cost was approximately US$274 million. Project debt was provided by Habib Bank Limited (HBL), National Bank of Pakistan (NBP), Allied Bank Limited (ABL) and Bank Al-Falah. The amount and structure of the debt facility were not made publicly available at the time of financial closure.