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Oracle Power says Pakistan MOU was inked in ceremonial signing

The company and its partners continue to advance the coal mine and power plant project in the Sindh province.
coal closeup
The partnership was revised in March

Oracle Power Plc (LON:ORCP) told investors that a memorandum of understanding between the company and its Chinese partners were ceremonially signed in Pakistan.

It noted that the signed document certain sections present in a previous version had been removed, though in a letter dated 2 May, from one of two partners, indicates that the prior March 2019 agreement remains valid and the document received on 1 May 2019 is only ceremonial.

Oracle is seeking similar confirmation from the other partner.

READ: Oracle Power reveals reorganisation of Pakistan partnerships

In March, Oracle informed investors of a change to the memorandum of understanding concerning the group’s power plant development project in the Sindh Province of Pakistan.

A new agreement in 2019 changes the composition of equity holdings in the project, though Oracle’s stake remains nearly intact (it will now have 12% rather than 12.1%).

Going forward, Beijing Jingneng Power Company (BJPC) will own 73% instead of 78%, and, PowerChina International Group will hold 15%, not 9.9%.

At that time, Oracle chief executive Ms Naheed Memon said: "There is a lot of detailed work at present being undertaken with our Chinese partners to optimise the project, as well as with the authorities in Pakistan.

“An increase in the proposed shareholding of PowerChina, who are global investors and developers for power and mining, reflects their belief, confidence and commitment to the project.”

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Once all the approvals, permits and tariffs are in place, Oracle’s partners will arrange the finance with Sinosure and Chinese banks.

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