ISLAMABAD - A milestone in China Pakistan Economic Corridor (CPEC) plan has been achieved Friday when the financial close of China Power Hub Generation Company Pvt Limited (CPHGC) was achieved.

The requisite final notification by the government of Pakistan was issued for financial close for the $ 2 billion CPHGC Project 2x660 imported coal powered plants and a dedicated coal jetty at Hub, Lasbella.

Speaking on the occasion, China Power Hub Generation Company CEO Zhao Yonggang said, "This is the biggest and the most important milestone of our project which will pave the way for many future successes. By meeting the Financial Close, we have accomplished all the requirements of the Government of Pakistan and the international consortium of banks for issuance of the project financing by the international lenders."

CPHGC is a joint venture vehicle between China Power International Holding (CPIH), a company of the Chinese government, that owns 74% shareholding and HUBCO the largest IPP in Pakistan with an ownership of 26% shareholding. CPHGC is one of the largest CPEC projects in Pakistan. Located in Hub, Balochistan, 45 km northwest of Karachi during commercial operations, the project will provide 9 billion kWh electricity to the National Grid every year, that will meet the electricity needs of 4 million households in Pakistan.

CPIH is a wholly-owned subsidiary of State Power Investment Corporation (SPIC), a Fortune 500 company, CPIH mainly engages in the development, construction, operation, overseas investment and financing and capital operation of power generation projects.

The company has assets in 23 provinces of China as well as in Hong Kong and Macao.

It has investments in Pakistan, Vietnam, Germany and other countries. By end of 2016, the total installed capacity of CPIH is 28110 MW, the company's total assets have reached $18.45 billion.

While HUBCO is the largest Independent Power Producer (IPP) in Pakistan with a combined power generation capacity of over 1600 MW. The company's RFO-fired thermal plant, situated at Mouza Kund, Hub in Baluchistan, supplies net 1200 MW of reliable and uninterrupted electricity to the national grid.