New York City, October 13, 2010 – Prime Sun Power Inc. entered into an agreement with DFD Select Group Ltd. and EnWay SAS, a financial advisory company specializing in capital preservation and EnWay an operational coordinator in the renewable energy industry, to co-develop up to 100 MW of photovoltaic plants in France in 2011.
Under this agreement, PSP and DFD/EnWay will jointly develop the 100 MW power plants until grid connection. PSP plans to acquire and operate the grid-connected power plants as a long-term company asset.
Both parties agree that, where possible, some of the modules for the PV plants will be provided by strategic partners or suppliers pre-selected by PSP.
The 100 MW power plants will be allocated on land identified by DFD/EnWay in the region of Arles and Castres in the South of France. Engineering, procurement, construction and installation contracting and long term financing will be provided by major French institutions currently in discussions with PSP.
PSP is in the process of appointing a major European investment bank with successful global track record in clean energy sector for the equity and capital raising of up to $222.6 million required for the development, construction and installation of 225 MW of PV-Power Plants which PSP has in its pipeline in Italy, France and Greece.
PSP has exchanged communications with the bank, which has indicated keen interest to accept the mandate. PSP expects to disclose the details of the financing upon completion of the due diligence related to closing the final agreement.
The bank considers PSP projects pipeline interesting for its client base, which includes financial investors (such as infrastructure funds focused on renewable), institutional investors (e.g. insurance companies), and strategic investors looking to secure downstream pipeline (such as module manufacturers), utilities and IPPs as well as industrial companies interested in diversifying in the renewable space.
PSP has also received a term sheet for the financing of its solar power plant projects in Italy on a leasing basis providing 80 percent of the investment cost.