Oracle Power PLC Formal Approval to Proceed Confirmed by SCIG
March 09 2018 - 1:01AM
RNS Non-Regulatory
TIDMORCP
Oracle Power PLC
09 March 2018
RNS Number :
Oracle Power PLC
9 March 2018
ORACLE POWER PLC
("Oracle" or the "Company" or the "Group")
Formal Approval to Proceed Confirmed by SCIG
Oracle 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") is delighted to announce it has been
advised that Sichuan Provincial Investment Group ("SCIG") has
formally approved to proceed with the Project, subject to obtaining
all necessary approvals and licences required by the Chinese and
Pakistan Governments and satisfactory due diligence. This follows
the signing of the Memorandum of Understanding ("MOU"), the details
of which were announced on 21 November 2017.
SCIG and PowerChina International Group Limited ("PowerChina"),
Oracle's Project development partners as outlined in the MOU, have
conducted their preparatory work on the Project and have now agreed
to proceed towards completion of due diligence, which the Company
believes will be completed in early Q2 2018.
Key details of the Project:
-- MOU signed by the Company with SCIG and PowerChina, together the "Parties";
-- Gross project cost estimated at $1.6 billion;
-- Proposed debt : equity ratio 75 : 25;
-- Oracle to hold a minimum 12.1% equity.
-- Oracle's historic development costs to be recognised as part
of the Company's equity holding and contribution in the
project;
-- The Chinese partners to be exclusively responsible for arranging project financing.
As previously advised, the Parties have entered into a two-stage
approach to develop the Project and this approval by the Board of
SCIG is a key step forward as part of the first stage. On
completion of the first stage, the next step will be to seek
approval from the Chinese Government, after which a final
development decision will be made to take the Project through to
financial close. Given that the Project has priority status in the
China Pakistan Economic Corridor, the Oracle board expects the
approval by the Chinese Government to be in a timely fashion.
Shahrukh Khan, CEO of Oracle, said:
"I am delighted to announce the approval of the SCIG Board to
proceed with the Project. Since signing the MOU in November 2017,
all parties have worked hard to advance the Project. We now enter
into an exciting new stage in Oracle's evolution.
"Oracle looks forward to updating shareholders in due
course."
For further information please contact:
Oracle Power PLC +44 (0) 203
Shahrukh Khan 580 4314
Brandon Hill Capital Limited +44 (0)203
Oliver Stansfield 463 5000
Peterhouse Corporate Finance +44 (0) 207
Charles Goodfellow 220 9791
Grant Thornton UK LLP +44 (0) 207
Salmaan Khawaja, Richard Tonthat 383 5100
Blytheweigh
Tim Blythe, Camilla Horsfall, +44 (0) 207
Megan Ray 138 3204
Fortbridge Consulting +44 (0)7966
Matt Beale, Bill Kemmery 389196
Notes for Editors:
About PowerChina:
PowerChina is a state-owned enterprise and is the owner of
Sinohydro as well as the Hydrochina Corporation, China Renewable
Energy Engineering Institute, Shandong Electric Power Company and
numerous electric power design institutes and power construction
companies. PowerChina provides planning, survey, design and
engineering, finance, construction, installation, and operation and
maintenance for power and infrastructure projects. In 2016,
PowerChina had revenues of GBP36.8 billion, net assets of GBP62.2
billion and employed 187,000 staff. PowerChina has already
successfully secured financial close on several CPEC
(China-Pakistan Economic Corridor) listed projects and are
proceeding with these power plant project constructions in
Pakistan.
About SCIG:
SCIG is a Chinese state-owned investment company which invests
in and manages projects in a range of sectors, including energy
resources, transportation, communications, raw materials,
electromechanical, agriculture and forestry. SCIG is China's fourth
largest and Sichuan Province's largest local electrical power
investment company, having a total install capacity of 36.04GW. In
2016, SCIG had revenues of GBP0.9 billion and net assets of GBP3.3
billion; it employs approximately 7,000 staff.
This information is provided by RNS
The company news service from the London Stock Exchange
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