LONDON (Alliance News) - IPSA Group PLC Friday said that subsidiary Newcastle Cogeneration Pty Ltd has begun drawdown of a loan facility granted by the Industrial Development Corp of South Africa Ltd.
The total sum of the facility is ZAR15.4 million, the power plant developer said.
"The funds will be used to repay indebtedness at the NewCogen level and to pay the final costs of installing the two Jenbacher engines which add some 4 MW (megawatts) of new capacity on site," the company said.
According to IPSA, works to install the engines will begin later in June, with the commercial operation date planned for early September.
"Once the engines enter service, output will be sold under the newly extended MTPPP power purchase contract with Eskom," the company said.
"The company's working capital remains tight and is being carefully managed until the expected receipt of the remaining balances owed by Rurelec PLC from the sale of turbines," the company said.
Shares in IPSA were untraded on Friday afternoon in London. The stock last traded at 1.81 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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