Business
EPC Framework Agreement with SEPCO
EPC Framework Agreement with SEPCO.
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[{"type":"text","content":"\n \nRNS Number : 5423S Oracle Coalfields PLC 25 September 2014 \n \n\n \n\nOracle signs EPC Framework Agreement with SEPCO for coal mine and power plant\n \n25 September 2014\n \nOracle Coalfields PLC\n(\"Oracle\", the \"Company\" or the \"Group\")\n \nEPC Framework Agreement with SEPCO for Coal Mine and Power Plant\n \nOracle Coalfields PLC (AIM:ORCP), the UK developer of a lignite coal mine and power plant in the south-eastern Sindh Province, Pakistan, is pleased to announce that the Company has made significant further progress towards delivering the commercial potential of Block VI in the Thar Coalfields. \n \nOracle today signed an Engineering Procurement and Construction (\"EPC\") Framework Agreement in Beijing with SEPCO Electric Power Construction Corporation (\"SEPCO\"), one of China's leading power and construction groups, following the receipt from SEPCO of outline bids for the construction of the integrated coal mine and power plant. \n \nAt the same time SEPCO has proposed a financing structure to potentially securitise up to 85% of the cost of the two EPC contracts which would be provided by Sinosure, the China Export & Credit Insurance Corporation, and certain Chinese banks. \n \n \nHighlights:\n \n· SEPCO has been selected as preferred contractor to enter into two lump sum turnkey EPC contracts for both the 4.2 million tonnes per annum Coal Mine and the 600MW Power Plant; the combined EPC price or transaction value is circa US$1.3 Billion. This figure is subject to modification during the finalisation of the detailed contracts. \n \n· SEPCO hasdelivered an outline of the financing proposal for project finance loans under which Sinosure would consider securitising up to 85% of the cost of the two EPC contracts.\n \n· SEPCO has agreed to consider taking an equity stake of 10% in EPL, which is to be formed in Pakistan by Oracle, after due diligence has been completed.\n \n· A comprehensive EPC Term Sheet for the coal mine and power plant is expected to be agreed between Oracle and SEPCO by year-end 2014 in preparation for the final investment decision, ...