(Alliance News) - Oracle Power PLC said Tuesday that USD50,000 has been submitted to the Private Power Infrastructure Board in Pakistan as a registration fee for processing the application for a proposed mine and power plant at Block VI in the Thar coal project.
The funds were spent under a pre-development funding agreement, which was reached with its consortium partners Beijing Jingneng Power Co Ltd and PowerChina International Group Ltd at the end of January.
Oracle Power contributed USD6,000 and its partners USD44,000 between them.
Once the letter of intent for the Thar project is approved, it will be issued along with a notice to proceed so that application for a generation licence and upfront tariff can be made to the National Electric Power Regulatory Authority.
Following this, the PPIG will issue a letter of support, allowing the power purchase agreement to be finalised with the Central Power Purchasing Authority as well as implementation agreement with the Pakistani government, which guarantees payments.
"This is the first time that our Chinese partners have injected capital towards project development on the ground. This payment to the Pakistani regulators reaffirms their interest and the consortium's eagerness to progress the project," said Chief Executive Officer Naheed Memon.
Shares in Oracle Power were down 2.9% at 0.301 pence on Tuesday.
Oracle Power (ORCP)