Oracle Coalfields PLC (LON:ORCP) remains confident of closing the finance package for its Thar coal-fired power station project in Pakistan following its elevation to priority status among China-Pakistan Economic Corridor developments.
Oracle said it has been involved in extensive and detailed discussion with potential Chinese partners over Thar since it was made a Priority List constituent.
Discussions are also now at an advanced stage with Engineering, Procurement and Construction contractors, to construct the mine and the power plant.
Talks are also ongoing over asset level equity and loan finance for the project, with the intention that the project finance will be underwritten by Sinosure, the China Export and Credit Assurance Corporation.
Shahrukh Khan, Oracle’s chief executive, said: "Not only does it heighten the Project's significance within Pakistan, it provides the basis for closing out the Company's financing arrangements with an assortment of Chinese Banks, Sinosure and Chinese Investors.
“Progress also continues to be made simultaneously from an operational standpoint and the company looks forward to updating the market in the near-term," he added.
To help bring the project to financial close the power plant has been registered with the Private Power and Infrastructure Board for a plant up to 1,320MW capacity, with initial construction of a 660MW plant at the site, with a “No objection letter” from the Central Power Purchasing Agency.
Water access of 38 cubic feet per second from a nearly completed pipeline and reservoir has also been allocated, which will provide the Thar coalfield sufficient water for power generation for the life of the project.
The power plant’s Environmental Social Impact Assessment has also been submitted to the Sindh Environmental Protection Agency with a public hearing to be held shortly.
The Corridor was established to support energy and infrastructure projects in Pakistan that are to receive debt and equity funding from Chinese companies and Chinese banks.