Oracle Coalfields is encouraged that a neighbouring coal-fired power station project in Pakistan has reached financial close. Oracle plans to build a coal-fired power station at Block VI in Thar Province.

The AIM-listed group is seeking finance for its project and said the nearby power project on Block II was some way down the road to construction.

The company initially wants to build a 660Mw plant, rising eventually to 1320Mw.

Oracle’s site was recently put on the priority list on the China-Pakistan Economic Corridor (CPEC), which should result in the fast tracking of debt funding for the project.

Oracle’s CEO Shahrukh Khan said the CPEC inclusion should also assist in the various approvals required at Federal and provincial levels in Pakistan, and also with the Chinese financial institutions.

“Progress with potential Chinese partners is taking longer than we hoped, but detailed discussions are under way with several State-owned Enterprises, as financing partners and as EPC contractors.”

The company’s next steps are for a power purchase agreement (PPA) application to be made along with the electricity tariff application and a generation licence application.

Work is continuing to complete the Environmental Impact Assessment (EIA) for the power plant as part of the application process.

In addition, on site preparation work is under way for development in particular to establish land ownership so that land acquisition and resettlement.

“Our work in 2017 will concentrate on formalising agreements and contracts to bring the project to full implementation, in line with the fiscal incentives including the continuing project Internal Rate of Return, along with securing all the financing arrangements,” Shahrukh Khan said.

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