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Oracle power project approved by CPPA

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World Coal,

Oracle Coalfields, the UK-based developer of a coal-to-power project in the Thar Desert in southeast Sindh Province, Pakistan, has received a Letter of No Objection from the Central Power Purchasing Guarantee Ltd (CPPA) relating to its proposed 600 MW mine mouth power plant.

The CPPA is a government agency tasked with purchasing power on behalf of the National Transmission and Despatch Co. (NDTC), the state-owned operator of the national electricity grid and seller of electricity to distribution companies in Pakistan. The Letter of No Objection confirms that the CPPA has no objection to the site, size or technology proposed, allowing Oracle Coalfields to continue its development.

In addition the CPPA confirmed that the Oracle project could be accommodated within the planned high-voltage transmission line, allowing transmission of 600 MW of power from the project to the national grid.

These announcements are further steps in the approval process for the project currently being undertaken by the Private Power and Infrastructure Board that will allow it to permit Oracle to build, own and operate the power plant.

"This is a further step in our goal to develop a long term sustainable solution towards Pakistan's energy crisis,” said Shahrukh Khan, CEO of Oracle. “The federal government's concurrence to power evacuation from our project to the national grid is an important milestone towards financial close.”

Pakistan is the sixth most populous country in the world with a population of about 180 million. It currently suffers from critical power shortages with regular power cuts and blackouts in Karachi, the country’s largest city and capital of Sindh Province.

Last month Oracle signed a consortium agreement with Shandong Electric Power Corp. of China (SEPCO) to cosponsor to 600 MW power plant. Oracle is also currently in discussions with SEPCO over an EPC framework agreement for the coal mine and power project.

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