Laraib Energy is developing an 84MW run-of-river scheme downstream of the Mangla dam, which HubCo said should also have carbon credits under the Clean Development Mechanism (CDM) of the Kyoto Protocol.

Following its acquisition of the 75% stake in Laraib Energy, HubCo said that construction on the project is due to commence before the end of 2008. HubCo said the output from the indepenent power project (IPP) would be supplied to the national grid company. Financial details of the acquisition were not disclosed.

HubCo was established in the 1990s as a IPP to develop a thermal power project in the country. It said it now wants to be the first IPP to develop a hydro power project.