MIRA INFORM REPORT

Report Date :

26.05.2011

IDENTIFICATION DETAILS

Name :	THE HUB POWER COMPANY LIMITED

Registered Office :	3^rd Floor, Islamic Chamber of Commerce Building, ST-2/A, Block-9, Clifton, P.O. Box No. 13841, Karachi-75600

Country :	Pakistan

Financials (as on) :	30.06.2010 (Unconsolidated)

Year of Establishment :	1991

Com. Reg. No.:	0024725

Legal Form :	Public Limited Company

Line of Business :	Principal activities of the Company are to own, operate and maintain an oil-fired power station with four generating units with an installed capacity of 1,200 MW in Tehsil Hub, District Lasbella, Baluchistan.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	PKR 5,000,000

Status :	Satisfactory

Payment Behaviour :	No Complaints

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Pakistan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Bottom of Form

Business Name

THE HUB POWER COMPANY LIMITED

Full Address

Registered Address

3^rd Floor, Islamic Chamber of Commerce Building, ST-2/A, Block-9, Clifton, P.O. Box No. 13841, Karachi-75600, Pakistan

Tel #	92 (21) 35874677 - 86 (9 lines)
Fax #	92 (21) 35876397
Website	www.hubpower.com
Email	info@hubpower.com

Short Description Of Business

a.	Nature of Business	Principal activities of the Company are to own, operate and maintain an oil-fired power station with four generating units with an installed capacity of 1,200 MW in Tehsil Hub, District Lasbella, Baluchistan.
b.	Year Established	1991
c.	Registration #	0024725

Plant Location

Tehsil Hub, District Lasbella,

Baluchistan, Pakistan

Auditors

M. Yousuf Adil Saleem & Co

(Chartered Accountants)

Legal Status

The Hub Power Company Limited (the “Company”) was incorporated in Pakistan on August 1, 1991 as a public limited company under the Companies Ordinance, 1984. The shares of the Company are listed on the Karachi, Lahore & Islamabad Stock Exchanges and its Global Depository Receipts are listed on the Luxembourg Stock Exchange.

Details of Chairman/Directors

Names

Designation

Mr. Mohamed A. Alireza

Mr. Vince Harris OBE

Mr. Yousuf A. Alireza

Dr. Fereydoon Abtahi

Mr. Robin A. Bramley

Mr. Malcolm P. Clampin

Mr. Taufique Habib

Mr. M. Jawaid Iqbal

Mr. Qaiser Javed

Mr. Ahmed Raza Khan

Mr. Ali Munir

Mr. Syed Ali Raza

Mr. S. Nizam A. Shah

Mr. M. Ashraf Tumbi

Mr. Keith Ulyett

Chairman

Chief Executive Officer

Director

Categories of Shareholders

Number of Employees

Capacity and Production

2010 2009

Theoretical Maximum Output 10,512 GWh 10,512 GWh

Total Output 8,337 GWh 8,257 GWh

Load Factor (Base Case 64.6%) 79.30% 78.50%

Note :

Practical maximum output for the power plant taking into account all the planned scheduled outages is 9,216 GWh (2009: 9,216 GWh). Output produced by the plant is dependant on the load demanded by WAPDA and the plant availability.

Bankers

(1) National Bank of Pakistan, Pakistan.

(2) Allied Bank of Pakistan.

(3) Askari Bank Limited, Pakistan.

(4) Bank Alfalah Limited, Pakistan.

(5) Bank Al-Habib Limited, Pakistan.

(6) Citibank N.A., Pakistan.

(7) Habib Bank Limited, Pakistan.

(8) Habib Metropolitan Bank Limited, Pakistan.

(9) MCB Bank Limited, Pakistan.

(10) NIB Bank Limited, Pakistan.

(11) Standard Chartered Bank, Pakistan.

(12) United Bank Limited, Pakistan.

Operations

During the year the Hub Plant continued to operate at optimal efficiency, high load factor and dispatched 8,337 GWh of electricity corresponding to a load factor of 79.3%. this is a record output and the directors would like to congratulate the management and the O & M operator in this respect. The Hub Plant maintained high availability of 85% for the full year. The Company continues to allocate funds on various betterment expenditures towards the ongoing modernization of the plant in order to ensure its long term integrity and maximum availability for our customer WAPDA.

Company Profile

The Hub power station is the first and largest power station to be financed by the private sector in Southern Asia and one of the largest private power projects in the newly industrialised world.

Financial closure took place in January 1995; two years after the sponsors of the project had decided to raise mobilisation finance and to begin construction to meet the policy guidelines of the Government of Pakistan for additional electricity to be provided by private investment. The Hub power station was the first project to be successfully co-financed by several governments, the World Bank as well as international private sector lenders and investors. It sets the standards for the formulation of a private power framework in Pakistan, which has elicited numerous responses from international investors. Several medium sized projects have since completed their financing, construction and now are in operation. Today, the Hub Power Company which is listed on Karachi, Lahore, Islamabad and Luxembourg Stock Exchanges has the largest market capitalisation of any private company in Pakistan and has over seventeen thousand (17,000) Pakistani and International shareholders.

Foreign Exchange Rates

Currency	Unit	Pakistani Rupee
US Dollar	1	Rs. 86.00
UK Pound	1	Rs. 139.30
Euro	1	Rs. 121.20

History of the Company

In 1985, the Government of Pakistan, with the help of the World Bank, developed a long-term energy strategy, which envisaged the involvement of private investors in power generation. The objective was to meet the increasing demand for power in the country, in the most efficient and effective way to achieve the levels of growth the Government had set for the economy. A year later, the development of the Hub Power Project began. The Government requested the sponsors led by Xenel Industries of Saudi Arabia to present proposals for a 1292 MW plant. The World Bank shortly thereafter became involved with the sponsors in the development process and set about establishing the support of a number of governments as co-financiers in the Private Sector Energy Development Fund for Pakistan. An appropriate location was identified in an area near the estuary of the Hub River in Baluchistan, about 40kms northwest of Karachi. At the conclusion of a full feasibility study in 1988, a construction consortium led by Mitsui of Japan was selected on the basis of a minimum functional specification for the plant, two members of which were later replaced following tender procedures. British Electricity International, which later became a wholly owned subsidiary of National Power of the United Kingdom, entered into a contract for the operation and maintenance of the plant. The plant was designed to meet the World Bank's environmental requirements. In 1991, Hubco was incorporated in Pakistan as a limited liability company for the purpose of implementing the project. During the three years hat followed, a series of agreements were negotiated between Hubco and the Government of Pakistan and certain of its institutions, the construction consortium and National Power. It was on the basis of these agreements that long-term finance was raised without direct guarantees from the Government. In addition to support from the World Bank and other governmental and multilateral sources, including the governments of France, Italy, Japan, the United Kingdom and the United States under the Pakistan Energy Development Fund, the World Bank and the Import/Export Bank of Japan jointly developed an Expanded Co-financing Operations Programme to assist the international commercial debt funding by the provision of a partial guarantee. A significant portion of the offshore debt was also guaranteed by certain export credit agencies. Rupee debt was provided by a group of local banks led by the National Development Finance Corporation of Pakistan. Debt syndication was completed during the last quarter of 1994 and by the end of the year, the full financing, including equity was in place. This was the single largest issue of domestic shares at one time. Financial closure was finally achieved in January 1995, when all consents and conditions precedent had been secured and the first tranche of the senior debt was draw down.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.38
UK Pound	1	Rs.73.31
Euro	1	Rs.63.70

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.