Sep 24 2010
Ellomay Capital Ltd, an Israeli Company, declared that it has signed two more Engineering Procurement and Construction type of contracts with an Italian contracting company for planning, designing, building, assembling and putting into service of PV plants each producing 1,000 kW power. The plant to be developed on an average cost of € 6.9 million is to be situated in Floggia Province, Trovia Municipality in Italy.
The EPC project adds up with other four solar developments of the company located in the Marche region of Italy. The EPC project involves the contracting company to secure legal delivery of two fully functional PV plants including its grid connectivity to the national grid of Italy for selling the produced power to the grid. The company has given an assurance to complete and link the EPC project to the grid before the end of 2010.
The company has also made it known that it has signed an accord with another contractor from Italy who has shown interest in the purchase of PV plants up to 12,500 KW production capability to be located in the Puglia region of Italy. As per the clauses of agreement the company has to enter into a contract with two Italian companies for construction of the Puglia plants and transfer an amount equivalent to € 910,000 as deposit for the construction of the plants. The plant will be purchased and the deal will be closed by the company on the successful outcome of the construction, fulfilling the legal, technical and tax processes or the deal will be cancelled. On successful completion of the formalities the Puglia Plants will be linked to the national grid of Italy at the prevailing rates of 2010. If the Puglia Plants are not connected to the grid at the prevailing rates of 2010, the company can opt for the non purchase of the plants or opt to purchase the plants at a reduced rate. In the event of the company deciding not to purchase either or both the plants a computed portion of the deposit is to be returned to the company. The company is not in a position to guess the outcome of the process or the likelihood of connecting the Puglia Plants to the grid at 2010 rates.
On completion and establishing grid connectivity for the EPC project and Puglia Plants, the company has decided to leave the operation and maintenance of the project to the contractors for an annual rental with a clause for extra bonus for increased output or penalty for reduction in output. The company plans to finance the projects by taking loans from the financial institutions.