P2 Solar Inc. has signed an agreement to acquire a 9.5-megawatt hydroelectric project in northern India for US$21 million.
P2 Solar has arranged debt financing comprising approximately $11.9 million in term loans with an India-based lender. “We have signed an MOU with an investment fund to infuse the equity capital required for the balance of the purchase price, approximately $9.1 million,” said P2 Solar’s CEO Raj-Mohinder Gurm. “The fund is already undertaking due diligence on this project and all the parties are working together to complete the process quickly.”
P2 said it undertook more than six months of due diligence working with third party engineers, accountants and lawyers to assess the Project Barkote 1, and has a sister project located nearby
“This project is a great addition to our hydro development projects in India that we have previously announced, Rajgarh and Tibba,” said Gurm. “We are planning to initiate construction on these two projects soon. Barkote 1 came online in April 2014 and, has since then, been generating revenue and cash flow.”
Barkote 1 has a power-purchase agreement with the state electricity company.