The Hub Power Company thankfully acknowledges the positive role played by the Provincial Government of Balochistan (GoB).

To set up the project the Company signed an Agreement with the GoB who assisted in the procurement of site and provided certain consents. The GoB is represented on Hubco's Board through the Secretary of Industries who is a nominated Director. The Company pledged to employ Balochi residents and issue shares to GoB in lieu of payment for Government land transferred to the Company

356,607 number of shares of Rs. 10 each were issued to the Government in 1994 when the Company was floated.

The Company has always recognized the importance of maintaining the goodwill of both the Provincial Government and the inhabitants of the area. Relations have throughout the Project history has been excellent and the Government has been particularly supportive on a number of important occasions. support has also been forthcoming at District and Local levels.

OCTROI

Perhaps, the most significant economic contribution to the Province relates to the payment of Octori. Octroi was paid on materials, furnace oil and construction equipment. Under the Agreement with the Government of Balochistan, payment of Octroi on construction equipment and materials was deferred until the Commercial Operations.

The deferral of Octroi was allowed as it was more expensive to pay the tax from foreign borrowing rather than revenue from commercial operations.

Since the inception of the project, the Hub Power Company has paid Rs. 500 million to the Provincial Government.