After striking a deal to buy two Westinghouse Siemens gas turbines from South African independent power producer Ipsa for £16.1-million, Latin America-focused Rurulec has made an interim payment to Ipsa’s primary creditor, Ethos Energy, bringing the amount still owed to Ipsa under the deal to £2.91-million.
This followed Rurulec’s disposal of its stake in the 5.3 MW Canchayllo hydroelectric plant, in Peru, for $6.8-million.
Ipsa said on Monday that it remained in discussions with Rurulec regarding the timing of the receipt of the balance of the payment due, although there was “no clarity yet” around when it could expect full settlement.
It added that it remained reliant on the receipt of the remaining balance of funds owed by Rurulec to satisfy the amount of €2.85-million now due to Ethos Energy and a loan of £500 000.
A further €2.6-million was due to Ethos Energy by September 30.
“The company also intends to sell its remaining balance of plant in relation to the previously sold turbines held on its balance sheet at a value of £4-million and the proceeds from any sale of a minority interest in subsidiary Newcastle Cogeneration (NewCogen) to satisfy its remaining creditors and provide additional working capital for the company,” stated Ipsa.
Meanwhile, the company outlined in a statement that, following its recent drawdown of a R15.4-million loan facility granted by the Industrial Development Corporation for the expansion of power capacity at the NewCogen power plant, in KwaZulu-Natal, it had progressed its search to bring in a black economic-empowerment (BEE) partner.
The group said it was now in negotiations with “suitable” BEE partners willing to acquire a holding in NewCogen for cash, although it cautioned that there could be no certainty a successful sale would be completed.
“Having a BEE partner would assist the board’s plans to add additional capacity at Newcastle under the new gas-to-power programme of the South African government,” it held.
Ipsa added that it was “satisfied” with the trading conditions and operating performance of NewCogen, following the extension of a medium-term power purchase programme contract with energy utility Eskom.