1998–2018: Lawsuits, renegotiation of contracts, and decline
In 2000, Hubco and its investors, including Entergy and National Power, agreed to forgive $200 million of the $274 million debt owed by the Water and Power Development Authority to Hubco. Hubco also reduced its tariffs and operation and maintenance contracts in 2002, reducing internal rate of return from 17 percent to 12 percent.[5][14] These adjustments were made to manage the remaining $74 million required for loan repayments.[14] Previously, Entergy had filed a lawsuit against WAPDA in the International Court of Arbitration which was withdrawn following a settlement.[15] The lawsuit sought approximately $8 billion in damages over the 30-year life of the independent power project.[15] The claim was filed in response to WAPDA's withdrawal from the power purchase agreement, which was based on allegations of corruption involving former Hubco's business executives.[15][5]
In 2008, Hubco acquired a 75 percent stake in Laraib Energy and initiated an 84 MW run-of-river hydroelectric power project downstream on the Mangla Dam.[16] In 2013, Laraib Energy's New Bong Hydropower Plant commenced commercial operation.[17]
In 2011, Xenel exited Pakistan and sold its stake of 140 million shares (12.3 per cent) at a price of Rs37 per share.[18] A year later, National Power UK divested its 17.44 percent shareholding to Dawood Hercules and Allied Bank Limited at PKR 31 per share.[19]
In 2013, Hubco incorporated its oil-fired Narowal Power Plant as its wholly owned subsidiary.[20]
In 2017, Hubco delisted its GDR from the Luxembourg Stock Exchange due to low trading volumes.[21]
In 2018, Dawood Hercules divested its 15.7 percent shareholding to Mega Conglomerate at PKR 105.12 per share.[22][23]
