Project Sponsors

The Hub Power Company Limited

HUBCO was established in 1991 and owns and operates the 1,292 MW thermal power plant located at Hub in Baluchistan. The Hub power station is the first and largest power station to be financed by the private sector in Southern Asia and one of the largest private power projects in the newly industrialized world. Financial closure took place in January 1995 and Hubco commenced commercial operations in March 1997.

Hub power plant represents about 8% of the generation capacity of Pakistan. HUBCO is listed on the Karachi, Lahore and Islamabad Stock Exchanges, and its Global Depository Receipts listed on the Luxembourg Stock Exchange. HUBCO has one of the largest market capitalizations of any private sector company in Pakistan with over 15,000 shareholders.

The Hub power station was the first project to be successfully co-financed by several governments, the World Bank as well as international private sector lenders and investors. It sets the standards for the formulation of a private power framework in Pakistan which has elicited numerous responses from international investors. Several medium sized privately funded projects have since completed their financing, construction and now are in operation, following the Hubco model.

HUBCO’s two largest shareholders are International Power (17%) and Xenel Industries (12%). International Power (IPR) is a leading electricity generating company with over 30,000 MW in Australia, the USA, the UK, Europe, the Middle East, and Asia. In Pakistan, IPR has interests in KAPCO (Kot Addu Power Company) (36%) and Uch (71.3%). IPR is listed on the London Stock Exchange. Xenel Industries (Xenel), founded in 1973 by one of the oldest trading houses in the Middle East. Xenel has is a diversified company with interests, amongst others, in energy, construction, infrastructure development, and carbon finance.

HUBCO is the FIRST

• private sector infrastructure project in Pakistan;
• lending in Pakistan by 15 onshore and 43 offshore banks;
• stock market floatation of a single power station under construction (USD 380 million);
• mark up based limited recourse infrastructure project financing;
• private infrastructure project to be financed by the World Bank;
• multi co-finance private sector infrastructure project with 9 co-financiers;
• mark up based finance to rank pari passu with interest based finance;
• political risk guarantee under ECO Program;
• COFACE, JEXIM, MITI or SACE supported limited recourse financing of an infrastructure project;
• use of the World Bank’s ECO program to support a private sector project.

Following its tradition Hubco has invested in Laraib to take it ahead as the FIRST private hydropower scheme in Pakistan. HUBCO is also the owner and developer of a 225MW thermal power project located in District Narowal of Punjab Province which is about to achieve its commissioning.

Other Sponsors

Laraib’s other shareholders are: Coate & Co. Limited (16.67%) and Asghar Ali Sons & Co. (7.78%). Coate & Co. Limited is a privately held Pakistan company owned by Mr. Khalid Faizi, Mr. Imtiaz Majeed and Mr. Aziz M. Khan. Mr. Khalid Faizi is a UK and Pakistan qualified chartered accountant with business interests in mining, oil & gas and telecom sectors. Mr. Imtiaz Majeed is an Australian and Pakistan qualified chartered accountant running Hammed Majeed Associates, a financial services consultancy. Mr. Aziz M. Khan is of Kashmiri origin with family businesses that includes Kohsar Hydro (1.5 MW hydropower plant), which sells electricity to another family owned steel mill, Mangla Metals. Asghar Ali Sons & Co. is a Bahraini trading company involved in the businesses of perfumes, real estate, stainless steel and textile.