Oracle Power leaps after approval for enlarged power station in Pakistan

The coal-fired power station’s capacity increase from 600MW to 700MW won approval alongside approval for the use of supercritical technology after an intra-Government meeting between China and Pakistan.

The AIM-traded company is working on the project in the Thar desert in the south-eastern Sindh Province with Chinese partners and expects to achieve financial close as soon as is feasible.

Before this can be reached the Chinese partners must agree to Oracle's equity interest in the project; financing with Sinosure, the Chinese export credit agency, and a power purchase agreement with a sovereign guarantee of payment must be finalised.

Meanwhile, an engineering, procurement and construction contract and an operation and maintenance contract must be agreed, while a letter of intent by must also be issued by the Private Power Infrastructure Board in order to secure a Generation Licence.

A statement from Oracle said: “The board recognises that 2018 was a challenging year for the company and its shareholders, particularly given the delays surrounding financial close. Oracle and the newly formed consortium are advancing the project to financial close in an expeditious manner.”

Oracle Power’s shares were up 16.67% at 0.52p at 1110 GMT.