Aug 6 2015
Sunergy, Inc. ("Sunergy" or "the Company") has yesterday submitted our official Expression of Interest to build, finance, operate and own solar Power projects in Liberia over the next 1 1/2 years. The funding required for the project is approximately $100 million US dollars. A more detailed cost will be confirmed during preparation of the project feasibility study.
Our Consortium is prepared to offer development and financing for the project through a Power Purchase Agreement ("PPA") and sovereign guarantee or implementation agreement, contingent on the project location and requirements, the competency of design and construction contract documents as well as mutually agreeable terms and conditions. The financing has the added benefit that it is fast to procure and is done without any dilutive effect on Sunergy's shares.
Our partner has offices in Northern California, (USA) and Washington, DC (USA), and is an Independent Power Producer ("IPP") with the mission to develop, finance, own, and manage (operations and maintenance) World-class solar energy facilities. They are actively developing responsible energy projects across the USA, Mexico, Japan and Africa with the flexibility to apply best-of-breed solar energy solutions to specific locations and requirements. They contribute the essential development expertise with regional market knowledge to apply proven solar technologies, EPC management with optimal project financing, and on-going asset management for each location and customer, while mindfully developing projects for environmental responsibility, with optimal local community benefits.
The finance offer is a total development solution encompassing development of existing feasibility studies, finance, and project development through the engineering, procurement and construction model. The offer also includes operation and maintenance. Our partner is an active supporter of the White House Power Africa Initiative. US President Barack Obama announced the initiative whose goal is to double access to electricity in sub-Saharan Africa. The United States government has made an initial commitment of more than $7 billion to finance projects, which has been matched by more than $9 billion of US private industry investment. Our Consortium is actively engaged with the Power Africa leadership and will utilize these funds for any project financing strategy pursued in Liberia.
The infrastructure development will be undertaken through a Liberia special purpose vehicle (SPV) with both foreign and local shareholding. This latter vehicle will be responsible for financing the projects and debt repayment. LEC will be responsible for debt repayment through power purchase arrangements. We also propose building a solar training institute ("Solar Academy") as a stand-alone institution or in conjunction with an existing education facility. This Academy will be built by GBG, our building partner discussed below.
Our building partner, Global Builders Group, Inc. ("GBG"): Recent visits to Ghana, Cameroon, Togo and Cote d'Ivoire have resulted in GBG establishing its West Africa Headquarters at an 86,000 sq. ft. industrial complex about 30 miles from the Tema Port facility adjacent to Accra, Ghana. This facility is under renovation and will contain a housing manufacturing factory, a cabinet and window manufacturing facility and a full machine shop for the manufacturing of fittings and items for sale to the construction industry locally and in neighboring Togo, Benin, Cote d'Ivoire and Liberia. GBG is currently in Joint venture development with partners in Ghana, Togo, Cote d'Ivoire, Cameroon, Nigeria and Liberia. Both trucking and shipping by sea of our manufactured products is efficiently enabled by this great location.
In addition to its building and housing construction business, GBG has become a registered Reseller of mobile oil refinery equipment with Refinery Equipment of Texas of Houston,Texas. www.reftexas.com. Ref Texas is a multi-million dollar global supplier of patented mobile oil refinery and modular power equipment that is capable of taking a feed of crude oil direct from wells in the field and producing either gas or diesel directly for immediate field use to run vehicles, power plants and even aircraft. Modules are capable of volumes ranging from 100 to 12,000 barrels per day. GBG has the ability to Re-sell this equipment globally. Currently, opportunities are being pursued by their on ground representatives in Ghana, Nigeria, DRC and Equatorial Guinea. Sunergy is a founding shareholder of GBG. More info on GBG can be found at www.globalbuildersgroupinc.com