Upower, Inc. Provides Update on Its Planned Solar PV Power Plant Projects in Honduras
WEST PALM BEACH, FL--(Marketwired - Jun 2, 2014) - Upower, Inc. ("UPI", the "Company", "we" or "our"), which plans to be an independent power provider ("IPP"), announced today that, on May 18th, 2014 Empresa Nacional de Energia Electrica ("ENEE"), the national energy company of Honduras, published both of our previously announced solar power purchase agreements ("PPAs") for two 50 MW solar PV power plants with ENEE in La Gaceta, the country's national publication where all laws and national contracts are required to be published prior to effectuating such laws or contracts. ENEE also accepted both of the bond guarantees in favor of ENEE associated with such projects which were arranged with local Honduran banks by our Honduran partners who are equity owners in Upower Honduras, Inc., our majority-owned subsidiary which itself has two subsidiaries, Produccion de Energia Solar y Demas Renovables, S.A. ("PRODERSSA") and Pacific Solar Energy, Inc. ("PSE"). Such public notice now permits PRODERSSA and PSE to proceed, together with the Company's engineering and construction "partner" for such projects, U.S. based Wind Turbine and Energy Cables Corp. ("WTEC") with whom the Company entered into a master engineering, procurement and construction contract in February 2014, with the final engineering for the two planned 50 MW solar PV power plants, and then with the construction of such solar PV power plants, subject to our receipt of required funding for such purpose, of which no assurances are given. The projects' construction has been initially budgeted by WTEC to cost approximately U.S. $190 million. WTEC, together with its affiliates, is an internationally recognized engineering, procurement, construction and manufacturing company that is dedicated to the alternative energy market. WTEC has over twenty-five years' experience in the renewable energy industry and boasts one of the largest renewable energy portfolios in the world with over twelve gigawatts of wind and three gigawatts of solar power installation experience. Once these 2 projects may be completed and operational, they are anticipated to generate approximately 165 gigawatt-hours of electricity a year, enough to power approximately 23,000 Honduran households.
Enrique Pallares, UPI's Chief of Business Development, who was instrumental in the Company procuring these projects, was quoted as saying, "As a planned IPP, we are very pleased about the status and continued progress of these projects. Once completed and operational, these two 50 MW solar PV power plants will contribute to Honduras' economic growth and employment through the use of clean energy in the Nacaome, Honduras region where such solar power plants will be located, and together are anticipated to constitute one of the largest solar powered power plant facilities in Latin America."
Brian Dick, Vice President and General Counsel of WTEC stated, "We are excited to partner with UPI on the development and construction of these projects. The projects have reached a critical milestone, and WTEC has and will be undertaking significant engineering, procurement and construction activities to ensure these projects' timely completion so as to deliver renewable energy's benefits to the Republic of Honduras."
David Macias, Upower's Chief Executive Officer, said: "We are very excited about our continued progress with ENEE and the Government of Honduras to implement the steps necessary to further advance these projects so that we may bring new sources of safe, reliable electricity utilizing conventional and renewable sources to the Republic of Honduras. We look forward to being a steady and long term provider of energy to Honduras for many years to come."
We continue to be involved in meetings and discussions as to other possible Honduran power generation projects, as well as with other off-shore jurisdictions for purposes of securing electric power generation contracts, and plan to issue press releases as new opportunities may present themselves.
Forward Looking Statements
Certain statements made by Upower, its subsidiaries and members of its management team on its behalf in this release and other periodic oral and written statements, regarding Upower's operating performance, events or developments that Upower believes or expects to occur in the future, including those that discuss anticipated financial results, strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, growth of Upower or of the market for its products and services, or general belief in Upower's expectations of future operating results are forward-looking statements. All such forward-looking statements are subject to risks and uncertainties, including the need by Upower for substantial additional working capital to materially advance its business plan, including the projects discussed in this press release; no assurances that Upower will be able to secure such capital or the terms upon which such capital may be secured, if at all; technology and other challenges involved in the development and operation of Upower's planned products and services, including the performance of technology which may be utilized by Upower, compliance with local, regional and national power generation, environmental and related laws, and local, regional and national governmental cooperation; local, regional and national economic considerations, including residential and industrial energy demand; foreign currency effects; Upower's ability to protect its intellectual property; the ability to integrate acquisitions successfully and the risk that expected synergies may not be fully realized or may take longer to realize than expected; and competitors' product introductions, pricing and other competitive pressures, as well as other risk factors and uncertainties. Forward-looking statements included herein are made as of the date hereof, and Upower undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.
