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Polaris Renewable Energy Inc T.PIF

Alternate Symbol(s):  RAMPF

Polaris Renewable Energy Inc. is engaged in the acquisition, development and operation of renewable energy projects in Latin America. It operates 82 megawatts (MW) geothermal facility in Nicaragua, three run-of-river hydroelectric facilities in Peru, with a combined capacity of approximately 33 MW, a 25 MW solar plant facility in Dominican Republic, a six MW run-of-river hydroelectric facility in Ecuador and a 10 MW solar plant in Panama. Through its subsidiary, Emerald Solar Energy SRL, it operates the Canoa I Solar Park located in the Barahona Province, Dominican Republic. Its San Jacinto-Tizate Geothermal plant is located in northwestern Nicaragua, in the sire of San Jacinto, municipality of Telica, 20 kilometers from the city of Leon. Its Vista Hermosa Solar Parks are located in the village of Vista Hermosa, Corregimiento de Pueblos Unidos, Aguadulce district, Cocle Province. Through its subsidiary Generacion Andina SAC, it owns 8 de Agosto, a Run of River hydroelectric operation.


TSX:PIF - Post by User

Comment by OneEyeon Jun 05, 2014 10:51am
184 Views
Post# 22633200

RE:How are we like Nevada Geothermal and how are we different?

RE:How are we like Nevada Geothermal and how are we different?RJ, Very good synopsis of NGPs path. Two comments (somewhat jaded I will admit); 1. RGP management has no expressed interest, intent or structure that will keep them in the geothermal business. 2. Private lenders are seldom so altruistic that their only concern is supporting development projects in developing countries. If the lender is faced with taking a substantial loss on the loan, but for the owner/operator, they will take the asset and sell it IMO. Not bad, that's just who they are. You are correct that they do not want to be the long term operator of a geothermal power plant. The lender in this case will certainly not take a loss on the project - that means the full loan has to be satisfied (paid or refinanced). For the right buyer, the banks might defer if there is a commitment for a new drilling program (once again ala' NGP) to increase production. But if it fails again, the banks are right back in the same position - why would they? EIG is still operating the Blue Mountain power plant because they do not want to take the loss they are still faced with. Asset buyers are not altruistic either by the way. Everyone looking at RGP assets, either SJT alone or the whole company, will place little or no value on any of the other geothermal prospects and try to buy for the lowest price possible. The risk of development is high, and the capital required to develop these projects is also high. Cos, I am sorry, but our company is leaving this business and will not develop any other projects in its current form. Management has two goals - get out of SJT (and the geothermal business) unscathed, and return as much of the corporate debt they possibly can. If there is anything left over for the shareholders - god bless them! In the land of the blind......... OE
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