EnerDynamic Provides Update on Puerto Rico - First Major Housing Contract Signed
NIAGARA FALLS, ONTARIO / ACCESSWIRE / October 8, 2020 / EnerDynamic Hybrid Technologies Corp. (TSXV:EHT) ("EHT") is pleased to provide an update on initiatives with its Puerto Rican JV partner, Brieke Family Assets Ltd ("BFA"), and their jointly-owned subsidiary, Cat5 Solar and Microgrids LLC (the "JV").
Yesterday the JV signed a definitive agreement with WG Pitts Caribbean LLC ("Pitts") for the supply of the JV's building products initially for 100 homes. Pitts is an authorized government contractor in Puerto Rico for the Government of Puerto Rico and the United States Government and is currently working on projects that fall under the CDBG-DR-PR R3 program ("R3 Program") where payment is made by a US Government body to the Government of Puerto Rico. Pitts will work with the JV to build a greater volume of homes than it is currently is able to build by utilizing the JV's innovative and unique building systems and part of the $100m line of credit that the JV has with Brevet Capital.
The JV's building systems will enable Pitts to build a safe, sustainable and resilient R3 Program home in less than 60 days effectively halving the time typically taken by contractors using normal construction methods and therefore putting people back into their homes at twice the normal speed of rehousing the families.
Pitts has agreed to utilize the JV's operating line provided by Brevet Capital as necessary to provide sufficient cash flow to initially build the first 100 R3 Program homes (units) utilizing the JV's products and recommended construction methods. The estimated average building order cost for a new home, ground up, construction is $150,000 (based on estimates performed by Pitts), inclusive of all materials, soft costs, permits, insurance, labor etc.; approximately $85,000 of cost per unit is for materials, of which $50,000 per unit is estimated for the JV's products.
The R3 Program is for residential units in Puerto Rico's 78 municipalities that had damage caused by hurricanes Irma and/or Maria. Priorities during the first 90 days of the R3 Program include:
Applicants with significant property damage (including blue roof)
Elderly applicants (65 years or older)
Disabled applicants
Low-to moderate-income eligible housing
Single-family housing units occupied by owners that were affected by hurricanes Irma and/or Maria.
Malcolm Wright, Director of Brieke, stated, "The R3 Program is the first major effort by the U.S. territory of Puerto Rico to carry out major repairs and rebuilding of damaged and destroyed housing. Nearly 27,000 homeowners applied under this program after its start date with an estimated new construction cost of $150,000 per home, equating to $4bn of new construction or a potential of $1.35bn for our JV Cat5 product lines. That is a huge potential target for our JV to obtain a very substantial share of the Puerto Rican market".
John Gamble, CEO of EHT, commented, "With our new arrangements with Pitts we can now open manufacturing plants in Puerto Rico for the JV's product lines. We intend to work hand in hand with both Pitts and other contractors and help the government housing department to accelerate its rebuilding program to re-house displaced families as quickly as possible and to employ local labor in our manufacturing facilities".