Pakistan’s First IPP
Hub River 1,292 MW Power Station
The Hub Power Project consists of 4×323 high-sulfur, residual fuel oil-fired, steam generating units, a 500 kV switchyard, double circuit transmission line, water and wastewater treatment systems. K&M provided a variety of services over the course of the project.
As Privatization and Institutional Reform advisors, K&M played a critical role addressing the legal, regulatory and financial reforms that established the institutional framework required for project implementation.
As Project Structuring and Development advisors, K&M’s was one of the initial architects of the transaction. K&M’s project structuring strategies and risk mitigation techniques were instrumental in attracting private investment and achieving financial close. K&M led the negotiations between the Government of Pakistan, World Bank and consortium of bilateral lenders and commercial banks that resulted in $1.6 billion in funding. K&M managed each aspect of project development which included structuring the Security Package, preparing the International Competitive Bid documents for securing the EPC construction consortium as well as tendering and evaluating bids. K&M developed a highly sophisticated financial model used to determine the tariff structure, internal rate of return and loan drawdown schedule.
As the overall Project Manager and Owner’s Engineer, K&M provided technical supervision, construction management, commodity procurement support, cost validation, quality assurance, and O&M contractor oversight. K&M supervised the turnkey EPC consortium including over 4,000 personnel that completed the power island, civil works, switchyard, transmission system, substations and associated support facilities.
The project commissioned in 1997.