Business
ISSUE OF LETTER OF INTENT AND NOTICE TO PROCEED
ISSUE OF LETTER OF INTENT AND NOTICE TO PROCEED.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 5203E Oracle Power PLC 12 February 2018 \n\nOracle Power PLC\n12 February 2018\n \n \n \n \n \n \nORACLE POWER PLC\n(\"Oracle\" or the \"Company\" or the \"Group\")\n \n \nISSUE OF LETTER OF INTENT AND NOTICE TO PROCEED \n \n \nOracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in Block VI of the Thar desert in the south-east of the Sindh Province of Pakistan (the \"Project\"), announced on 15 November 2017 that, together with its consortium partners, the two Chinese State-owned Enterprises, Sichuan Provincial Investment Group Co. Limited (\"SCIG\") and PowerChina International Group Limited (\"PowerChina\")(together the \"Consortium\"), it had made a submission to the Private Power and Infrastructure Board (\"PPIB\") for a proposal for the power plant.\n \nThe Company advises that the PPIB has approved the issue of Notice to Proceed (\"NTP\") and Letter of Intent (\"LOI\") to the Company's subsidiary Thar Electricity (Private) Limited (\"TEPL\"). The issue of the NTP and LOI is for the development of a 700MW coal based power plant at Thar Block-VI, as the first phase of a 1,400MW power plant. The power plant size, originally submitted as first phase 660MW (of a total plant size of 1,320MW), has been increased to 700MW (of a total plant size of 1,400MW) to comply with new requirements in Pakistan which the Board understands is to apply more efficient super critical technology The PPIB's approval is subject to this change in size, any resultant change in shareholding and the implementation of the Project in two phases being approved within the China Pakistan Economic Corridor (\"CPEC\").\n \nThe issuance of the LOI is the major step required of Oracle in the first stage of the Memorandum of Understanding (\"MOU\") signed with SCIG and PowerChina, as announced on 21 November 2017. SCIG and PowerChina are currently undertaking their legal and financial due diligence as their part of the first stage of the MOU. This will then lead into the second stage (expected in the second quarter 2018) in which SCIG and PowerChina will make their final development decision, and EPC contracts and definitive agreements will be entere...