The Hub Power Company Ltd. China-Pakistan Economic Corridor Power Projects Round Table on Energy Serena Hotel, Islamabad September 29 th -30 th, 2015 Nazoor Ali Baig

The Hub Power Company Ltd. Table of Contents What does CPEC mean to Pakistan? Our role to realize the benefits Power industry opportunities HUBCO project

The Hub Power Company Ltd. What does CPEC mean to Pakistan It is the most important business deal for the country Multi-year investment, worth USD 46 Billion Opportunities in Energy, Communications, Infrastructure, Gwadar, Etc. Of the USD 46 Billion, 75% are planned for Energy sector Absolutely critical for the growth of Pakistan’s economy

The Hub Power Company Ltd. Our role in realizing the benefits (1/2) Both countries stand to gain from this opportunity. However, it depends on the abilities of both parties and how they are exploited Government’s ability to improve the processes and regulations to remove barriers, allowing projects to move efficiently and effectively Investors collaborating with the government to improve the processes Government has and continues to play a key role in providing support when it comes to financing these projects

The Hub Power Company Ltd. Our role in realizing the benefits (2/2) Pakistan’s play; Prominent investor’s ability to pull the resources for these projects, with country’s future in forefront Pakistan has the Intellectual capital required to manage this long journey, we need to stay focused This is a very good opportunity for knowledge transfer for the future, invest in the younger generation Getting coal in the mix of fuels is the right move, need to get cheaper fuel in the mix for global competitiveness Hard work and adaptability is what we are very capable of, and, will be the key to our success

The Hub Power Company Ltd. Power Industry Opportunities This is the opportunity Pakistan has been waiting for to launch its economy with efficient, reliable, and economical power with stable grid Supported by infrastructure development for fuel transportation and grid stability Once the grid is stable, and with capacity meeting demands (i.e. reserve margin), along with the choice of fuel(s), one can think of market based pricing There are a number of projects on the horizon, and there will be challenges with each. Our goal should be to collaborate and learn from each other

The Hub Power Company Ltd. HUBCO Project (1/3) Project is 2x660 MW plant with dedicated Jetty for coal import, expandable to 6x660 JV company formed with CPIH “China Power Hub Generation Co.” One of the projects in “Actively Promoted Projects” list in CPEC Started with 1x660 MW with seven bidders, now going to resubmit proposals for 2x660

The Hub Power Company Ltd. HUBCO Project (2/3) Regulatory i.LOI submitted ii.Upfront tariff approval awaited Financial i.Engagement of financial consultant ii.Lead banks CDB & CEXIM iii.Expected financial close Q2, 2016 Technical i.FSR completed ii.RFP issued iii.ESIA completed iv.Jetty Options being evaluated

The Hub Power Company Ltd. HUBCO Project 3/3 Key areas to focus on from technical perspective – Safety Higher pressures and temperatures Explosive nature of pulverized coal Ash handling – Availability of the plant Proven technology Redundancies Efficiency Grid stability Outage cycles Auxiliary loads Spares management