Oracle Power PLC entered a joint development deal with the private office of Sheikh Ahmed Dalmook Juma Al Maktoum and a unit of China National Coal Group Corp. for the Block VI coal-to-power project in Pakistan's Sindh province.
The agreement proposes the creation of a special-purpose vehicle, which will be owned 73% by China National Coal unit China National Coal Development Co. Ltd., 15% by the private office and 12% by Oracle.
The company said Dec. 16 that it believes the agreement replaces a previous deal in March for the development of the project with Beijing Jingneng Power Co. Ltd. and PowerChina International Group Ltd.
Oracle and the sheikh's office will be responsible for securing all the required permits and approvals, and introducing China National Coal to the government stakeholders. The sheikh is a member of Dubai's ruling Al Maktoum family and founder of Africa Middle East Resource Investment Ltd., or Ameri Group.
Meanwhile, China National Coal will provide the required technical and commercial support and arrange the debt required for project development.
The Block VI project was included in a proposed new initiative between Pakistan and China with respect to gasification of coal into fertilizer.
The project is also part of the China-Pakistan Economic Corridor — part of the Asian giant's Belt and Road initiative — and will run in parallel with the company's long-term plan to construct and operate a mine-mouth power plant on Block VI.