Rame Energy expands agreement with Santander and sells stake in project

Rame, the independent power producer (IPP), has increased the capacity of its Chilean wind projects that are to be developed as part of the US$69 million framework agreement with Santander, by a net 15 MW to 133 MW.

The combined total of approximately 54 MW for the expanded project is planned to enter construction in Q4 of this year. The framework agreement with Santander now totals 133MW and the target remains to have this capacity installed by the end of 2016 subject to finance. This follows the successful mechanical completion of the 15 MW Raki / Huajache project announced on 9 March 2015 which was co-financed with Santander separately to the framework agreement.

The 9 MW Punta Chome project will no longer be considered for investment under the agreement with Santander. As a result, Rame has executed binding terms with EREN Développement. The agreement covers the sale, pre-construction permit finalisation, on-site construction enabling works and other project services to assist EREN in the complete implementation of the project and is worth up to US$2 million between now and project completion, estimated to be in Q2 of 2016. Rame retains an option to participate in up to 20% of the project's equity.

Rame CEO Tim Adams said

"The introduction of a new project under the framework agreement with Santander increases the overall MW target and its consolidated returns. It is also testament to our ongoing relationship with Santander and the expanded 54MW project will be fast-tracked to construction by the end of 2016. The decision not to proceed with the Punta Chome project emphasises the ability of the partners to make effective changes to the strategy and to respond to emerging opportunities in this very dynamic market."

"Moreover, we are delighted to have agreed terms with EREN for the Punta Chome project which recognise the value of Rame's underlying project assets and project management skills and that will see the project progress quickly towards construction. I look forward to building on our relationship with EREN and demonstrating the opportunity to realise real value from our pipeline and capabilities with both our partners in addition to growing our presence as an IPP."