TORONTO, Jan. 7, 2020 /CNW/ - Polaris Infrastructure Inc.
(TSX: PIF) ("Polaris Infrastructure" or the "Company"), a
Toronto-based company engaged in
the acquisition, development and operation of renewable energy
projects in Latin America, is
pleased to announce that its two run-of-river hydro projects in
Peru, 8 de Agosto and El Carmen,
have achieved their respective Commercial Operation Dates ("COD")
and have received official extensions of the Power Purchase
Agreements ("PPA").
Following the Company's acquisition of these and other assets on
October 30th, 2018, the Company set
about completing construction of the projects within the terms of
the applicable PPAs. El Carmen (~ 8 MW expected capacity) and 8 de
Agosto (~ 20 MW expected capacity) are in the Huanuco region of
Peru. Successful management of the
Company's construction and engineering partners, coupled with
effective cooperation from the various Peruvian government
administrative bodies allowed Polaris Infrastructure to deliver on
this significant achievement.
Both projects are now delivering electricity and are connected
to the national grid through a 60 km transmission line owned by
Polaris Infrastructure.
El Carmen's commercial operation was achieved on November 30th, 2019 and 8 de Agosto achieved
commercial operation on December 25th,
2019. As the PPAs for both projects stipulate required CODs
of October 28th, 2019, formal
extensions were required from the Peruvian Ministry of Energy and
Mines ("MINEM") for such PPAs to remain valid. Polaris
Infrastructure has now received the formal extensions from MINEM
with extension dates in the first quarter of 2020 for both 8 de
Agosto and El Carmen. Accordingly, any electricity that is
delivered after such commercial operations dates are recognized
under the corresponding PPA pricing terms.
"The completion of the construction of the hydro projects in
Peru is another important
milestone for the Company. The combination of strong cash flow
generation at San Jacinto with additional revenue and cash flow
from our hydro projects in Peru
sets the Company up very well for 2020. The additional
diversification of revenue and cash flow will enable the Company to
continue to grow and diversify as well as return capital to
shareholders", noted Marc Murnaghan,
Chief Executive Officer of Polaris Infrastructure.
Cautionary Statements
This news release contains certain "forward-looking information"
which may include, but is not limited to, statements with respect
to future events or future performance, management's expectations
regarding the Company's revenue and cash flow from the Company's
hydro projects and the Company's ability to grow and diversify and
return capital to shareholders. Such forward-looking information
reflects management's current beliefs and is based on information
currently available to management. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "predicts", "intends", "targets", "aims",
"anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could",
"should", "would", "might" or "will" be taken, occur or be
achieved. A number of known and unknown risks, uncertainties
and other factors may cause the actual results or performance to
materially differ from any future results or performance expressed
or implied by the forward-looking information. Such factors
include, among others, general business, economic, competitive,
political and social uncertainties; the actual results of current
geothermal energy production, development and/or exploration
activities and the accuracy of probability simulations prepared to
predict prospective geothermal resources; changes in project
parameters as plans continue to be refined; possible variations of
production rates; failure of plant, equipment or processes to
operate as anticipated; accidents, labor disputes and other risks
of the geothermal industry; political instability or insurrection
or war; labor force availability and turnover; delays in obtaining
governmental approvals or in the completion of development or
construction activities, or in the commencement of operations; the
ability of the Company to continue as a going concern and general
economic conditions, as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form. These factors should be considered carefully and readers
of this news release should not place undue reliance on
forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. The information in this news
release, including such forward-looking information, is made as of
the date of this news release and, other than as required by
applicable securities laws, Polaris Infrastructure assumes no
obligation to update or revise such information to reflect new
events or circumstances.
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the
operation, acquisition and development of renewable energy projects
in Latin America. Currently, the Company operates a 72MW
geothermal project located in Nicaragua and a 5MW as well as another 28 MW
of run-of-river projects located in Peru.
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SOURCE Polaris Infrastructure Inc.