CPHGC’s 1,320MW project in Balochistan commercially operational

The Central Power Purchasing Agency (CPPA) said last week that the China Power Hub Generation Company (CPHGC)’s 1,320MW coal-fired power project in Balochistan was now commercially operational.
“M/s CPHGC has successfully undergone through commissioning tests as per the agreed procedure. The engineer has certified the successful commissioning of the complex,” said a CPPA notification
The company also declared that CPHGC 1,320MW coal-fired power project which was included in the China-Pakistan Economic Corridor (CPEC) was commercially operational.
The Hub Power Company Ltd. (HUBCO) and China Power International Holding are partners in the project. They announced its 1,320MW imported coal power plant and integrated jetty with coal transshipment capacity of 4.2 million tonnes per annum (MTPA).
The CPHGC project was among early harvest energy projects under CPEC framework and was developed in record time, as per schedule and within projected costs.
It will add 9 billion kWh of electricity to the national grid every year, meeting the electricity needs of four million households in the country, says a report.
The project’s two units achieved synchronization with the National Grid on December 28, 2018, and May 28, 2019, respectively, while the Integrated Coal Jetty became operational in December 2018 with the arrival of the first shipment of coal.
At present, the Hub Power Company Limited produces over 2,920MW through its four plants in Balochistan, Punjab and Azad Jammu & Kashmir.
The government had approved the processing of 1,320MW imported coal-based power project at Hub in November 2014 and the joint venture of Hubco and CPIH was issued a letter of intent in June 2015.
The National Electric Power Regulatory Authority (Nepra) had approved the upfront tariff for the power project in February 2016.
The Joint Cooperation Committee (JCC) of the CPEC included a 660MW unit of the project in the list of ‘priority projects’ and the remaining 660MW in ‘actively promoted projects’ under CPEC framework agreement of Nov 8, 2014.
As the questions about ‘capacity trap’ started arising, the government had decided in 2016 to give up one of the two 660MW plants to contain reliance on imported fuels and reduce foreign exchange losses. However, it was compelled to restore the full capacity after the Chinese partner of the joint venture took up the matter at the highest level and then followed it up at the 6th JCC meeting in December 2016.
The Pakistan government was told that the commercial viability of the Hub power project on supercritical technology was possible only with 1,320MW for which it had also been given tariff by Nepra at the request of Islamabad. It also took the stance that negotiations and processing of the project starting in November 2014 pertained to 1,320MW for which financial arrangements had also been ensured and its unilateral reduction to 660MW at an advanced stage was unacceptable.