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Western Wind takes delivery of US $12 million of solar panels and secures US cash grant | Northamerica

Western Wind takes delivery of US $12 million of solar panels and secures US cash grant

Western Wind Energy Corp.announced that it has signed a Module Supply Agreement ("MSA") with a leading international, multi-billion dollar photovoltaic panel manufacturer for 42 MW DC (30 MW AC) for its Yabucoa Project located in Puerto Rico.

The panels have been delivered and Western Wind Energy has taken ownership and possession of the panels, prior to the December 31st, 2011 year-end therefore, qualifying and exceeding the minimum 5% safe harbor provision of Section 1603 of the American Recovery Re-Investment Act. ("ARRA"). This transaction enables Western Wind Energy to be eligible for the 30% US Federal Tax Free Cash Grant which is estimated to be approximately US $45 million. In addition to the US $45 million tax-free cash grant, Western Wind also qualifies for an additional US $64 million of Puerto Rican investment tax credits, which are both marketable and monetize-able.

These two sums total US $109 million of additional benefit that is over and above the plus US $100 million Western Wind has received and will be receiving for the Kingman and Windstar Projects, respectively.

The Module Supply Agreement was secured by a US $12 million loan that will be repaid with the project finance proceeds led by Rabobank (New York office). There is a finder's fee of 5% payable to the finder of this transaction, payable in either cash or shares, in both cases, not exceeding $600,000.

Jeff Ciachurski, President of Western Wind Energy states, "this is a monumental accomplishment to secure the cash grant before the expiry date and together with the Puerto Rican ITC, add another $109 million of direct cash benefit to the Western Wind shareholders. Together with the previous $100 million received and/or about to be received from Kingman and Windstar respectively, this brings the aggregate amount of cash grants, tax credits, and tax shield benefits totaling over a half a billion dollars. It will only be a matter of time before Bay Street analysts realize the full value of Western Wind Energy. This is another gold medal performance by the Western Wind team, to close off 2011."
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Posted by Gisela Bühl | 2011-12-30