(Alliance News) - ThomasLloyd Energy Impact Trust PLC on Wednesday said it has decided to proceed with the construction of the Rums project in India.
The investment company focused on sustainable energy infrastructure projects said that failing to construct the project, to be built via SolarArise India Projects Private Ltd, would incur immediate write off costs of USD8.9 million, encashment of USD1.2 million of performance bank guarantees and could expose SolarArise to abandonment penalties of up to USD32.3 million.
ThomasLloyd said it received agreements from shareholders representing about 69% who indicated their support for proposed changes to the investment policy. Changes would permit the company to exclude the amount of any funds invested in the Rums project up to completion of commissioning from the assessment of the single country limit.
"The revised investment policy will also contain a commitment that no further sustainable energy infrastructure assets shall be acquired, or projects committed to, with exposure to India until the company is in compliance with the single county limit. The company is also proposing clarificatory changes to its gearing policy," it added.
ThomasLloyd said: "Due to the extremely tight timeline for completing the RUMS project on time, the board believes that there is a reasonable likelihood of construction not being fully completed on time. It should also be noted that the RUMS project finance is subject to a guarantee from SolarArise."
ThomasLloyd shares were flat at 84.00 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News reporter
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