Beijing Jingneng Power Co. Ltd. replaced Sichuan Provincial Investment Group Co. Ltd. as one of Oracle Power PLC's consortium partners in the coal mine and minemouth power plant project in Block VI in Pakistan's Thar desert.

Oracle Power shares were up nearly 60% in late-morning London trades following the announcement.

The company had joined a consortium with Sichuan Provincial Investment Group Co. Ltd. and PowerChina International Group Ltd. to develop the Block VI project.

Shanghai-listed coal power producer Beijing Jingneng will take up a 78% equity interest in Block VI and may invite other investment partners while retaining majority ownership.

Oracle will retain a 12.1% equity interest in the project, and PowerChina will take up a 9.9% stake, according to a Dec. 20 release.

Oracle, Beijing Jingneng and PowerChina formalized the amendment and signed a new consortium agreement, which has been formally submitted to authorities in Pakistan.

PowerChina will be the engineering, procurement and construction contractor for the project, and Beijing Jingneng will be the operations and maintenance contractor.

Beijing Jingneng and PowerChina will arrange all debt financing for the project through Chinese banks.

Oracle's historical spending on the project will be capitalized as a contribution toward its equity interest.

Oracle will be responsible for arranging the necessary permissions and approvals in Pakistan, while PowerChina will handle political and financial matters with the Chinese government and the China-Pakistan Economic Corridor.

The project's estimated development cost of about US$1.6 billion will be firmed up during discussions with the parties in the consortium.

The project will be developed in two phases, with due diligence in the first phase and definitive agreements and financial close in the second phase.