Oracle Power PLC (LON:ORCP) said it has agreed in principle a Memorandum of Understanding with two Chinese State-owned enterprises for the full development and funding of its flagship Thar project in the south-eastern Sindh Province of Pakistan.
The AIM-listed energy developer of a combined lignite coal mine and mine mouth power plant said the MOU will see the Chinese parties take a significant majority equity holding in return for arranging debt finance and providing Engineering, Procurement and Construction contractors for the project.
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The group said terms are being finalised and it is anticipated that the MOU will be formally signed during October 2017.
Shahrukh Khan, Oracle Power’s CEO, said in a statement: "This is a positive step-forward in taking our project through to financial close.
“I thank our Chinese partners for the confidence they have shown in the project and in Pakistan and I look forward to working with them."