Oracle signs consortium agreement with Shangdong Electric

Oracle Coalfields PLC has entered into a consortium agreement with the Shangdong Electric Power Corp. of China (SEPCO). Under this consortium agreement, Oracle and SEPCO will be sponsors of a 600 MW indigenous coal-fired power plant that will be built, owned and operated by Thar Electricity Ltd (TEPL) – a private limited company incorporated in Pakistan.

Oracle will hold 90% of the equity of TEPL and SEPCO will hold the remaining 10%. The coal power project has already been registered with the Private Power and Infrastructure Board, part of the Ministry of Water & Power, Government of Pakistan.

Shahrukh Khan, CEO of Oracle, commented: "SEPCO remain a major and valued partner in our goal to develop a long-term sustainable solution towards Pakistan's energy crisis. This is an important step to securing a government guarantee for payment for electricity supplied.”

The Parties have now made a detailed submission to the Private Power and Infrastructure Board (the Consortium Agreement is included as part of this). It is anticipated that this will lead to TEPL entering into a Power Purchase Agreement with the National Transmission and Despatch Co. (NTDC), the state utility, as well as an Implementation Agreement with the Government of Pakistan, providing, inter alia, a government guarantee for the payment by NTDC for electricity supplied to it by TEPL.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/power/12102015/oracle-and-shangdong-electric-to-sponsor-600-mw-coal-fired-power-plant-2995/