Govt seeks Chinese help to resolve Hubco-CPHGC issue

The federal government requested the Chinese embassy on Thursday to arrange a meeting of the Joint Energy Working Group — a forum set up under the China-Pakistan Economic Corridor — at the beginning of next week to resolve the conflict between China Power Hub Generation Company Ltd (CPHGC) and the Hub Power Company Ltd (Hubco). CPHGC served on Nov 23 an “encashment notice” of $150 million on the bank that issued a standby letter of credit (SBLC) on behalf of Hubco, which owns 47.5 per cent shares in the 1,320-megawatt power plant based on imported coal. Sources told Dawn that the federal secretary of power met the Chinese ambassador on Thursday following a meeting of all stakeholders at the Prime Minister’s Office under the chairmanship of Mohammad Jehanzeb Khan, special assistant to the prime minister on government effectiveness.