Oracle Power signs MoU with Chinese state-owned firms

Oracle Power, the UK-based developer of a combined lignite coal mine and mine mouth power plant located in the Thar desert in the south-eastern Sindh Province of Pakistan, announced on Wednesday that it has agreed in principle a memorandum of understanding with two Chinese state-owned enterprises for the full development and funding of its flagship Thar project.

The AIM-traded firm said the MoU set out that the Chinese parties would take a “significant majority equity holding”, would arrange debt finance and would provide engineering, procurement and construction (EPC) contractors for the coal mine and power plant.

It said the MoU terms were being finalised, and it anticipated that the memorandum would be formally signed during October.

The MoU, once executed, would supersede previous memoranda and shareholder framework agreements relating to the development of the mine and power projects that had been announced by the company, its board confirmed

A further announcement, with details of the terms of the MoU, would be released once the memorandum was finalised.

“This is a positive step-forward in taking our project through to financial close,” said Oracle’s CEO Shahrukh Khan.

“I thank our Chinese partners for the confidence they have shown in the project and in Pakistan and I look forward to working with them.”