Oracle Coalfields remains confident of closing the finance package for its Thar coal-fired power station project in the southeast of Sindh Province, Pakistan. This follows the project’s elevation to priority status among China-Pakistan Economic Corridor (CPEC) developments.
Oracle has been involved in extensive and detailed discussions with potential Chinese partners about Thar since being placed on the priority list.
The power project was elevated to the CPEC priority list in late 2016 and was recently also included in an updated priority list of energy projects.
Discussions are also at an advanced stage with Engineering, Procurement and Construction (EPC) contractors, to construct the coal mine at Block VI and the adjoining power plant.
The company says talks are also ongoing over asset level equity and loan finance for the project, with the intention that Sinosure, the China Export and Credit Assurance Corporation, underwrite project finance.
The economic 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.
Oracle’s chief executive Shahrukh Khan 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,” 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 1320MW 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 been submitted to the Sindh Environmental Protection Agency with a public hearing to be held shortly.