UK-basedd Oracle Power has moved forward with plans for a 1400 MW coal-fired power plant in Pakistan after the country’s Private Power and Infrastructure Board (PPIB) approved plans for the project’s first phase.
Oracle Power and its partners, Sichuan Provincial Investment Group Co. Limited (SCIG) and PowerChina International Group Limited, submitted a proposal for the lignite-fired plant in Sindh Province in late 2017. It says that the PPIB has approved the issue of Notice to Proceed and Letter of Intent to Oracle Power’s subsidiary, Thar Electricity (Private) Limited (TEPL).
Oracle is planning to develop a coal mine and mine mouth power plant in Block VI of the Thar desert.
Oracle Power CEO Shahrukh Khan said: “This is an important step in the regulatory process in Pakistan, confirming the reciprocal commitments of Oracle and its consortium partners and the government of Pakistan to this major energy project.
“Together with the inclusion of the project in China-Pakistan Economic Corridor (CPEC), it should assist fast-tracking of the project to financial close.”
Oracle added that its consortium partners are currently undertaking their legal and financial due diligence and hope to make a final development decision in the second quarter of 2018. Oracle is in discussions with potential financiers and an insurance company over the provision of a $700 000 performance guarantee.
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