Oracle Power PLC - Operational update
("Oracle" or the "Company")
· Block VI maintained as
· China Pakistan Economic Corridor ("CPEC") approve Oracle proposed expansion to 700MW;
· Consortium partnership change noted in CPEC.
The 8th JCC meeting took place on
· Oracle's project retained its status as one of the Priority Projects of the CPEC Energy initiative.
· The Company has been granted approval for the proposed increase in capacity from 660 MW to 700 MW. This approval includes the upgrade to supercritical technology.
· As part of a broader drive to indigenous power generation, the JCC reconfirmed 19 other Energy Projects promoted under CPEC, totalling 13,630MW, noting 7,240MW of which were currently under construction. The remaining 6,390MW, including Oracle's Block VI, were working towards financial close.
Following the signing of the Memorandum of Understanding ("MOU") on
· Engineering, Procurement and Construction ("EPC") contract and Operation and Maintenance contract ("O&M") contracts;
· For the power plant, issue of a Letter of Intent by Private Power Infrastructure Board to secure a Generation Licence;
· Between the MOU partners, finalisation of Definitive Agreements, including agreeing Oracle's equity interest;
· Agreement of project financing with Sinosure, the Chinese export credit agency;
· Finalisation of the Power Purchase Agreement and the Implementation Agreement which includes a sovereign guarantee of payment.
There has been renewed emphasis from the new Government in
Oracle's project has been significantly derisked by the progress in the neighbouring integrated open-pit coal mine and power plant project in Thar, Block II, with initial power plant trials understood to be taking place in the near future. Block II is a joint venture between the provincial Government of Sindh (as majority shareholder) and private Pakistani interests.
The Board recognises that 2018 was a challenging year for the Company and its shareholders, particularly given the delays surrounding financial close. Oracle and the newly formed consortium are advancing the project to financial close in an expeditious manner. The Company now expects a steady stream of newsflow as the various requirements mentioned above are met. Shareholders will be updated on subsequent progress in due course.
For further information:
+44 (0) 20 3580 4314
+44 (0) 20 7409 3494
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Peterhouse Corporate Finance (Joint Broker)
+44 (0)20 7220 9791
Tim Blythe, Camilla Horsfall, Megan Ray
+44 (0) 20 7138 3204
This information is provided by RNS, the news service of the
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