Oracle Power and its two consortium partners, Chinese state-owned enterprises Sichuan Provincial Investment Group Co Limited (SCIG) and PowerChina International Group Limited, have submitted to Pakistan's Private Power and Infrastructure Board (PPIB), a proposal to build, own and operate a 660MW private power plant.
The UK-based energy company plans to develop a combined lignite coal mine and mine mouth power plant at Block VI of the Thar desert in the southeast of Pakistan’s Sindh Province.
The 600MW plant is the first phase of a planned 1320MW project.
The proposal submitted to PPIB, the regulator of the Pakistan power industry, includes summary details of the parties, technical details of the proposed power plant and the availability of fuel from Thar Block VI, financial details of the parties, their power project experience and the Consortium Agreement (CA).
If the proposal is accepted by the PPIB, the PPIB will undertake to issue a letter of intent (LOI) in respect of the power plant. The LOI requires the parties to submit an electricity tariff application to the National Electric Power Regulatory Authority (NEPRA) and to apply for a generation licence from NEPRA.
Once the tariff is determined and the generation licence issued, PPIB then issues a letter of support, which enables the Power Purchase Agreement and the Implementation Agreement with the Pakistani Government Authorities to be finalised. It is anticipated that this process will be concluded within three months.
Prior to the signing of the CA, the parties have agreed in-principle a memorandum of understanding. The finalised MOU is expected to be signed this month, to be followed thereafter by definitive agreements.
Oracle’s CEO Shahrukh Khan said, “This submission to the PPIB is a further step in the formal process to enable the construction of a power plant for an initial 660MW in Thar. The company would like to extend its thanks to the Pakistani Authorities who have continued to support Oracle’s efforts in bringing this sizeable project to financial close.
“With the financing partners now identified and keen to progress the project in a timely fashion, the company will continue to update shareholders on progress as milestones are achieved.”