Remember why we're here31 Jan 2020 11:26
This JDA follows on from the Company's announcement of 19 November 2019 detailing that the Company's flagship Thar Block VI has been included in a proposed new initiative between the governments of Pakistan and China with respect to gasification of coal into fertiliser. The Project is also enshrined within the intra-government initiatives under the China-Pakistan Economic Corridor ("CPEC"). This new initiative runs in parallel to the Company's remaining long-term plan to construct and operate a mine-mouth power plant on Thar Block VI, also included as a "Priority Project" within the CPEC. The Company believes this JDA supersedes and replaces the previous Memorandum of Understanding (dated 19 December 2018 and subsequently amended: www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ORCP/14016881.html) and provides for an all-encompassing development scenario for both aspects of the aforementioned projects.
The JDA foresees the creation of a Special Purpose Vehicle to develop and undertake both projects. It is envisaged that the Project will be funded on a 75% debt and 25% equity basis, with the proposed ownership as follows:
CNCDCL 73%
Private Office 15%
Oracle 12%
...CNCDCL will be primarily responsible for providing the required technical and commercial support in order to meet the project requirements, as well as arranging all the debt required to develop the Project. This includes applications for obtaining/granting of contracts and licenses necessary for the for the development, establishment, construction, completion, commissioning, commercial operation and maintenance of the Project.
Naheed Memon, CEO of Oracle said:
...The outlook for Oracle has never been brighter and I look forward to updating the market on further developments as we move forward in 2020."