Oracle’s partners in the project are Chinese state-owned companies Sichuan Provincial Investment Group (SCIG) and PowerChina International Group.
It was in November 2017 that the partners had submitted their proposal to PPIB to build the thermal power plant.
PPIB has approved the issue of Notice to Proceed (NTP) and Letter of Intent (LOI) to Oracle’s subsidiary Thar Electricity (TEPL) to develop the first phase of a 1.4GW power plant to come up in Block VI of the Thar dessert.
Oracle CEO Shahrukh Khan said: “This is an important step in the regulatory process in Pakistan, confirming the reciprocal commitments of Oracle and its Consortium partners and the Government of Pakistan to this major energy project.
“Together with the inclusion of the Project in CPEC, it should assist fast-tracking of the Project to financial close.”
Originally, the power plant size for the first phase was submitted as 660MW with the total plant size to be 1,320MW. However, both have been increased to 700MW and 1,400MW, respectively in accordance with new requirements in Pakistan.
SCIG and PowerChina, the Chinese partners of Oracle are expected to make their final development decision on the power project in the second quarter of this year.
Oracle plans to award EPC contracts and enter into definitive agreements related to the project once its Chinese partners start making their investments.
The proposed power plant is planned to provide power for a new lignite coal mine to be developed by the same partners at Block VI, which is located in the heart of the Thar Coalfield.
Located 380km east of Karachi, the Thar Coalfield is estimated to hold total lignite resource of more than 175 billion tonnes.
