Due to restrictions arising from Covid-19 Polaris was unable to commence the construction of the Project in 2020
Polaris Infrastructure, a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, announced today that it has extended the period of exclusivity to June 30, 2021 for the Memorandum of Understanding (“MOU”) signed in 2020 to acquire the owner of a Panama-based 10 MW run-of-river hydro project called Chuspa (the “Project”) from Navitas Holdings, Inc. of Panama.
Due to restrictions arising from Covid-19 Polaris was unable to commence the construction of the Project in 2020. We are optimistic that with this extension we can mobilize in the second quarter of this year.
While Covid-19 has pushed back the commencement of construction in Panama, Polaris is committed to continue with the strategic goal of continued growth and diversification. The recent announcement of the successful renegotiation and extension of our key contract at San Jacinto has positioned the Company to pursue its key goals:
Additional progress on corporate development and acquisition initiatives in the renewables sector;
Optimization of the balance sheet given the recent contract extension and the relatively low level of Net Corporate Debt;
Advancement of Carbon Credit certification process for 8 de Agosto and El Carmen hydro facilities in Peru to ensure all operating facilities are certified to sell credits.
In addition to the contract renegotiation, and despite a challenging environment, in 2020 Polaris:
Achieved a record level of total energy production on a consolidated basis as a result of the Peru plants becoming fully operational;
Sustained full availability at all our plants during Covid restrictions and experienced no cases amongst our staff;
Finished the year with a strong cash position of US$63 million;
Took the opportunity to augment our corporate development and project finance teams in both Toronto and Latin America;
Enhanced our leading ESG strategies, policies and disclosures and continued our excellent Health and Safety record.
“Given such activities and accomplishments, we are positioned well to execute on the plan to grow and diversify in the short and medium term” commented Marc Murnaghan. “I also want to take this opportunity to personally thank all of our employees, financial partners, local communities and government partners for their support and commitment to Polaris in 2020 and extend best wishes for a safe and prosperous 2021.”
Source: Company Press Release