Oracle Coalfields (LON:ORCP) has signed a consortium agreement with the Shangdong Electric Power Corporation of China (SEPCO) for its Thar coal/power project in Pakistan.
Under the agreement, Oracle and SEPCO will be sponsors of a 600Mw indigenous coal-fired power plant to be built, owned and operated by Thar Electricity (Private) Limited, a private limited company incorporated in Pakistan.
The agreement specifies Oracle will hold 90% of the equity of TEPL and SEPCO the remaining 10%.
The consortium agreement forms part of the submission to Pakistan’s Private Power and Infrastructure Board (PPIB), which is expected to lead to a power purchase agreement with NTDC, the state power company, that would include a government guarantee for payment.
Shahrukh Khan, Oracle’s chief executive, said: "SEPCO remain a major and valued partner.
“This is an important step to securing a government guarantee for payment for electricity supplied.”