Current
UK Projects
– Walters Power UK creatively
identified an opportunity to use the UK-based inventory it shares with
a hedge fund. The work over the last six months shows promising results
with each new development. Construction work has started on the first
of a series of $5M projects that will be commissioned in 2010. Walters
Power UK recently announced that it will develop an 8MW plant in
Yorkshire. The plant is the first of an expected series of small power
plants in the United Kingdom to be developed by Walters Power UK.
California
Projects
– The development of a 30 MW biomass project is the most
promising of several Walters Power California projects in California.
Walters Power California has obtained an exclusive development
agreement and is near approval of the term sheet with a municipal
utility group that will sign a 20-year agreement for a power plant. The
rate will be in excess of 10 cents and the fuel cost will be zero or
negative. These terms generate significant cash flow. WPC is negotiating a “pre-paid” PPA
with the utility that pays approximately 60 percent of the revenue 120
days after commissioning. This is an exciting project and will be
commissioned in 2011.
Pakistan Projects
– The Bhikhi power
plant is operating, two others are under construction and two more have
been awarded and are moving rapidly down the development path. WPI
and its affiliates have financed and spent more than $100 million
during the last three years and will spend at least $100 million in the
next 12 months. WPI is three years into the challenging work to build Pakistan’s largest power generation portfolio. Template EPC
and O&M contracts are currently in place, a local staff of 25 is
operating smoothly and the accrued value light is shining at the end of
the tunnel.