HUBCO Thar Energy Investment: $51 Million Proposal Seeks Shareholder Approval
The Hub Power Company Limited (HUBCO) is moving forward with significant plans to boost coal-based energy development in Thar, Sindh. The company has announced an Extraordinary General Meeting (EOGM) scheduled for August 7, 2025, where shareholders will vote on a $51 million investment in two of its key Thar energy projects.
$31 Million Extension for Thar Energy Limited
The first item on the agenda is a proposal to extend and amend HUBCO’s existing sponsor guarantee of up to $31 million for Thar Energy Limited (TEL)—a 330 MW coal power plant. HUBCO holds a 60% stake in this mine-mouth project.
Originally approved in 2018 and updated in 2019, the guarantee was issued in the form of a Standby Letter of Credit (SSC LC) to cover any cost overruns, loan payment shortfalls, or operational liabilities. HUBCO is now seeking to extend this guarantee’s validity to January 2034 or until the TEL loan matures.
$20 Million Support for ThalNova Power Thar
In addition to TEL, HUBCO is proposing a new SSC LC of up to $20 million for ThalNova Power Thar (Private) Limited, another 330 MW coal-fired power plant. This facility will cover potential funding gaps or project liabilities and will be valid until July 2034 or loan maturity.
HUBCO has already invested $52 million in ThalNova through its wholly owned subsidiary, Hub Power Holdings Limited (HPHL). So far, no losses or impairments have been reported on this investment.
Long-Term Vision Under 2015 Power Policy
Both the TEL and ThalNova projects are registered under Pakistan’s 2015 Power Policy and are projected to deliver around 20% equity returns in USD. HUBCO’s latest proposal reflects its long-term commitment to strengthening energy security through domestic coal.
These investments also align with Pakistan’s broader plan to shift towards local energy resources and reduce dependence on expensive imported fuels.
Strategic Step for Pakistan’s Energy Future
The proposed HUBCO Thar energy investment not only supports ongoing coal-based generation but also ensures continued financial stability and project completion. Shareholder approval on August 7 will be crucial in moving these key energy projects forward.
Read More Here:
K-Electric Boosts Industrial Growth in Karachi with Grid Power Shift
Overseas Pakistanis Remittances Hit Record $38.3 Billion in FY2024-25
