The development of the Thar Project requires the simultaneous creation of the open pit mine and the construction of the mine-mouth power plant to utilise the output of the mine. To coordinate these elements Oracle Power has created a network of legal contracts, permits and licences through which the project will be coordinated. Two Pakistani companies have been created to implement the project, Sindh Carbon Energy Ltd. for the mine and Thar Electricity (Private) Ltd (TEPL) for the power plant. The way in which the elements of the Project are related is outlined in the structural diagram attached.
The two operating companies are owned by Oracle Power plc, the AIM registered UK company. They have been set up in a form suitable to incorporate other investors in the future from inside and outside Pakistan. They will be linked by the Coal Supply Agreement under which coal will be supplied from the coal mine to the power plant.
Power generated from the power plant will be sold to the to the National Transmission and Despatch Company, the Government owned National Grid. This will be organised through a Power Purchase Agreement with TEPL as an independent private power producer. Both the coal price and the power price are regulated prices which will require a close cooperation in the future at the level of both the Government of Sindh and the Federal Government.
The project has been structured in a manner to facilitate a considerable expansion of coal and power production in the future.