Polaris to acquire 10 MW Chuspa hydro project

Polaris Infrastructure Inc. has signed a Memorandum of Understanding (MOU) to acquire 100% of the equity of a Panama-based 10 MW run-of-river hydro project called Chuspa from Navitas Holdings Inc.

Polaris has the option to acquire 100% of the equity for nominal upfront consideration and such option expires on December 31, 2020. To the extent Polaris elects to exercise its option, the company will invest the required equity capital to complete the project, estimated to be approximately US$15 to US$20 million.

The project has all the licenses and permits in hand that is required to both complete construction and operation. Minor construction works have already been completed such as road access, foundation preparation for turbine house. Navitas has already paid significant down payments on two turbines. The company has also secured contracts for approximately 40-50% of expected production are in hand at US$85 per MWh. Polaris Infrastructure plans to fund the construction with cash on hand.

The MOU is non-binding and there is no assurance that the transaction will be completed on the terms described above or at all.