China’s official government news agency, Xinhua, has reported on a loan contract worth $1.5 billion which has been finalised between the Hubco Coal Power Plant project and a group of Chinese banks led by the China Development Bank.
Construction of the project, comprising two power plants with a total predicted output of 1.32 gigawatts, began in March. The power plants are being constructed by the China Power Hub Generation Company, which is a joint venture between Pakistan’s Hub Power Holdings Ltd and China Power International Investment Ltd.
The power plants are expected to be operational in 2019, providing energy for four million Pakistani households and creating ten million new jobs. The coal power plant had been declared a priority project under the China-Pakistan Economic Corridor (CPEC).