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U.K.-based Oracle Coalfields PLC said Thursday that it has reached a $1.3 billion agreement with Chinese power and construction firm Sepco Electric Power Constructions Corp. to develop a coal mine and power plant project in the Thar Coalfields of Pakistan, which will provide much-needed energy to the country.
Oracle signed an Engineering Procurement and Construction, or EPC, framework agreement in Beijing with Sepco after receiving several bids to develop the 4.2 million tonnes per annum coal mine and 600 megawatt power plant project in the so-called Block VI of the Thar Coalfields, Oracle said in a filing with the London Stock Exchange.
Oracle also said the China state-owned company proposed a financing structure to potentially securitize up to 85 percent of the cost of the EPC contracts with financing provided by Sinosure, the China Export & Credit Insurance Corp. and certain other Chinese banks.
"I am delighted that Oracle and Sepco have signed this EPC Framework Agreement for the construction of the integrated coal mine and power plant, which is a major milestone in the development of the Block VI project in the Thar Coalfields,” Oracle chairman Adrian Loeder said in a statement. “Oracle looks forward to working closely with Sepco in bringing this important project to fruition."
The work will be completed through two Pakistani incorporated Oracle subsidiaries in Sindh Carbon Energy Ltd. and Electric Power Ltd., a company currently under formation that will operate the power plant.
SCEL owns the mining lease for Block VI in the Thar Coalfield for the mining of lignite coal and will sell coal to the EPL power station to be located adjacent to the mine.
Sepco may also take a 10 percent equity stake in EPL under the agreement, Oracle said.
"We at Sepco are confident of Oracle's endeavors to develop one of Pakistan's largest energy projects and are delighted to be Oracle's preferred EPC contractor and partner for the coal mine and power plant project,” Sepco chairman Liu Chuanming said in a statement. “Oracle has demonstrated its high standards in taking their project to this level that complements Sepco standards in project execution and financing."
Final terms of the deal are expected by the end of the year, with groundwork set to commence in 2015, Oracle said.
"Both Sepco and Oracle are eager to succeed in the development of our integrated coal mine and power plant project and to play an effective role in addressing Pakistan's energy crisis," Oracle CEO Shahrukh Khan said in a statement.
Oracle Coalfields Inks $1.3B Deal For Pakistan Coal Project - Law360
Oracle signed an Engineering Procurement and Construction, or EPC, framework agreement in Beijing with Sepco after receiving several bids to develop the 4.2 million tonnes per annum coal mine and 600 megawatt power plant project in the so-called Block VI of the Thar Coalfields, Oracle said in a filing with the London Stock Exchange.
Oracle also said the China state-owned company proposed a financing structure to potentially securitize up to 85 percent of the cost of the EPC contracts with financing provided by Sinosure, the China Export & Credit Insurance Corp. and certain other Chinese banks.
"I am delighted that Oracle and Sepco have signed this EPC Framework Agreement for the construction of the integrated coal mine and power plant, which is a major milestone in the development of the Block VI project in the Thar Coalfields,” Oracle chairman Adrian Loeder said in a statement. “Oracle looks forward to working closely with Sepco in bringing this important project to fruition."
The work will be completed through two Pakistani incorporated Oracle subsidiaries in Sindh Carbon Energy Ltd. and Electric Power Ltd., a company currently under formation that will operate the power plant.
SCEL owns the mining lease for Block VI in the Thar Coalfield for the mining of lignite coal and will sell coal to the EPL power station to be located adjacent to the mine.
Sepco may also take a 10 percent equity stake in EPL under the agreement, Oracle said.
"We at Sepco are confident of Oracle's endeavors to develop one of Pakistan's largest energy projects and are delighted to be Oracle's preferred EPC contractor and partner for the coal mine and power plant project,” Sepco chairman Liu Chuanming said in a statement. “Oracle has demonstrated its high standards in taking their project to this level that complements Sepco standards in project execution and financing."
Final terms of the deal are expected by the end of the year, with groundwork set to commence in 2015, Oracle said.
"Both Sepco and Oracle are eager to succeed in the development of our integrated coal mine and power plant project and to play an effective role in addressing Pakistan's energy crisis," Oracle CEO Shahrukh Khan said in a statement.
Oracle Coalfields Inks $1.3B Deal For Pakistan Coal Project - Law360
