Polaris Infrastructure, a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, has acquired Panama-based 10 MW run-of-river hydro project called Chuspa, from Navitas Holdings.
The hydro project has all the required licenses and permits in hand that are required for complete construction and operation. The minor construction works such as road access, foundation preparation for turbine house have already been completed. Also, significant down payments have already been made on two turbines. The contract for over 40 to 50 per cent of expected production has been signed at USD 85 per MWh. The anticipated timeline for the completion of the hydro project is 12-15 months after the mobilization commences.
The key terms of the MoU are:
- Polaris has the option to acquire 100 per cent equity for nominal up front consideration. This option expires on December 31, 2020.
- Polaris will invest the required equity capital to complete the project, estimated to cost approximately USD 15 million to USD 20 million. Polaris is expected to invest in the project using its own resources.