Language
Amendment to payment terms for its first equipment acquisition
3rd March 2005
Rurelec today announces that it has successfully renegotiated the payment terms in respect of its acquisition of Energia para Sistemas Aislados SA ("ESA"), owner of two 3 MW reciprocating dual fuel engines, announced on 11th October 2004.
Instead of taking an assignment of US $1.2 million of long term obligations associated with the machines, Rurelec has made a one time cash payment of US $500,000 in full and final settlement. Furthermore, interest and principal due on 31st December 2004 have been waived. Rurelec has made a headline saving of US $700,000 on the cost of the machines. As a result Rurelec as at today's date has no debt, ownership of 12 MW of plant capacity and approximately £600,000 of cash or near cash.
For further information contact:
Elizabeth Shaw
Tel: +44 (0)20 7793 7676
Rurelec PLC is a British company established to develop rural electrification projects in Latin America. It is managed by a team with a strong track record in developing power projects worldwide and with considerable experience in the electricity sector in Latin America.
Rurelec has two principal businesses:
-Ownership of power generation facilities in isolated areas
-Management of rural electrification expansion projects funded by the World Bank or multi-lateral development agencies.
Rurelec recently floated on the AIM market of the London Stock Exchange in order to have access to European institutional capital for new power projects and to ensure transparency for its public sector-funded project management activities.
Arbuthnot Securities Limited which is authorised by the Financial Services Authority is acting as nominated adviser to Rurelec and for no one else in connection with the transactions described herein and will not be responsible to any person other than Rurelec for providing the protection afforded to its customers or for advising any other person in relation to the transactions described herein.