Oracle Power PLC (LON:OCP) has entered into a joint development agreement with the private office of Sheikh Ahmed Dalmook Juma Al Maktoum and China National Coal Development Company (China Coal) for its thermal power station project at Thar in Pakistan.
The JDA will see a special purpose vehicle set up that will be 73% owned by China Coal, 15% by Sheik Al Maktoum’s private office with Oracle Power owning the remaining 12%.
Sheik Al Maktoum’s private office is replacing Beijing Jingneng (BJPC), which previously held a 15% stake, while China Coal has replaced PowerChina.
The agreement with BJPC and PowerChina is superseded by this new agreement, added Oracle, which along with the Sheik's private office will have responsibility for permits, licenses, governmental and regulatory approvals.
China Coal will be primarily responsible for providing the required technical and commercial support as well as arranging all the debt required to develop the project.
The JDA foresees the creation of a special purpose vehicle to develop and undertake both the coal mine and power station elements with funding envisaged on a 75% debt and 25% equity basis.
Naheed Memon, Oracle’s chief executive, said China Coal and the Sheikh bring with them the "requisite expertise, financial wherewithal and global presence to ensure a project of this scale can be brought to fruition".
“This project is of national significance not just for Pakistan but, we believe, also for China as part of its One Belt Initiative and inclusion in CPEC.”