CPHGC signs $1.5 billion foreign financing agreement with Chinese lending consortium
CPHGC signs $1.5 billion foreign financing agreement with Chinese lending consortium: ISLAMABAD- China Power Hub Generation Company Pvt. Ltd. (CPHGC) and a consortium of banks, led by China Development Bank and the Export & Import Bank of China have signed financing documents including the main foreign loan facility agreement on in the Chinese city of Chengdu.
The consortium of banks will provide up to 75 per cent of total Project investment, that is approximately $1.5 billion. To-date, CPIH has provided $300 million as shareholder loan to pay for project construction.
Representatives of China Power International Holding Ltd (CPIH), Hub Power Company(HUBCO), CPHGC, China Development Bank(CDB), Export-Import Bank of China as well as the other participating banks of the Consortium that includes Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications were present at the signing ceremony, says a statement received here Monday. The project of CPHGC is located in Hub, Balochistan, 45 km northwest of Karachi.
The equity proportion of CPIH in CPHGC is 74 per cent and that of HUBCO is 26 per cent. The total investment in the Project that includes 2x660MW Imported Coal-Fired Power Plant and a dedicated Jetty is approximately $2 billion. 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.
At the signing ceremony, Zhao Yaozhong, President of Sichuan Province, Branch of China Development Bank (CDB), said: China Development Bank is the largest foreign investment and financing cooperative bank in China as well as the largest development financial institution in the world with an estimated gross asset nearing \16 trillion ($2.
4 trillion). Up to now, China Development Bank has supported 19 projects in Pakistan with a combined worth of around $7.8 billion, covering a number of key areas of cooperation between China and Pakistan. Since 2006, China Development Bank has established a good cooperative relationship with Pakistani government, local banks and Pakistan-based Chinese enterprises, giving a credit of $1.7 billion to Ministry of Finance of Pakistan, and $500 million to HBL, which boost the cooperation on credit among Chinese banks, Ministry of Finance of Pakistan and other Pakistani financial institutions.
Yu Bing, Chairman of China Power International Holding, quoted the speech by President Xi Jinping in the 19th National Congress of the Communist Party of China that China adheres to the fundamental national policy of opening up and pursues development with its doors open wide.
China will actively promote international cooperation through the Belt and Road Initiative. In doing so, we hope to achieve policy, infrastructure, trade, financial and people-to-people connectivity and thus build a new platform for international cooperation to create new drivers of shared development.
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