Prophecy Power Generation LLC, a wholly-owned subsidiary of Prophecy Coal (TSX:PCY,OTCQX:PRPCF,FWB:1P2) reported that it is conducting final evaluation of three tenders from Engineering, Procurement and Construction firms to build its proposed 600 MW (150 MW x 4) Chandgana power plant project in Mongolia.
As quoted in the press release:
After the Chinese National Holidays, the Prophecy Power team, led by John Lee and Mr. Sharma, last week visited the EPC short-list tenderers in Asia and had a full week of discussion regarding the tender submissions. Mr. Lee particularly focused on the EPC tenderers’ financing proposals, such as full project-level non-recourse financing, recourse loans, and EPC supplier credits. The objective is to have at least partial financing in place to begin construction in 2013.
Prophecy Power has spent two years and invested substantial capital to reach this mature project stage. The Chandgana construction license is secured, the Power Purchase Agreement (PPA) and tariff application have been submitted, the Coal Supply Terms are agreed, full EPC tenders are received, and Project Financing steps are initiated. Lastly, Prophecy Power has identified equity partners to jointly develop the Chandgana project, with further progress on a joint venture expected by year end.