LONDON (Alliance News) - Electric utility company Rurelec PLC said on Wednesday it has noted that Energia del Sur SA, which operates a 136 megawatts Southern Patagonian combined-cycle power plant in Argentina have accepted an insurance payment of USD2.5 million.
As a result, Energia del Sur has resumed its monthly debt repayment against its current debt of USD3.6 million owned to Rurelec Project Finance Ltd, although at a reduced level of USD300,000 per months for five month.
The plant has operated at a reduced output following its shutdown in September due to the failure of some blades of the steam turbine. Maintenance, which was planned for April, has been delayed further due to a shortage of liquidity from CAMMESA, which is providing the loan finance to allow maintenance to take place.
Energia del Sur is currently looking for alternative funding; however until the plant resumes full output, Rurelec's capital position remains severely constrained, it said.
Shares in Rurelec were untraded on Wednesday at 0.83 pence.