3rd Rns1 Nov 2019 18:22
Update on EU Project of Common Interest status and EU grants
InfraStrata plc (AIM: INFA), the UK quoted company focused on strategic infrastructure projects, confirms that further to its announcement on 17 January 2019, the Islandmagee Gas Storage Project has not been included on the fourth list of 'Projects of Common Interest' ("PCI") published today by the European Union ("EU"). This scenario had already been anticipated in the project budgets and the Board confirms that the economic viability of the Islandmagee Gas Storage Project remains strong.
In respect to the final grant reclaim for EUR1.6 million that is due to be paid to InfraStrata from the EU, the Board remains confident this will be paid in Q4 this year. All documents have been independently verified by auditors and the Company awaits the final repayment.
Additionally, while PCI status was meant to provide the Islandmagee project with fast-tracked permit and license processing times, this has not been universally recognised in the UK in the Company's experience. Therefore, the Board does not see a disadvantage to the Islandmagee project for not being included in the new PCI list.
Having made opportunistic applications to the EU for a further grant for studies earlier this year, in conjunction with Mutual Energy, the Company will withdraw this application for additional FEED studies in light of today's news.
John Wood, CEO of InfraStrata, said:
"The Board took the view earlier this year that it was highly unlikely that the Company would receive any additional financial support from the EU due to the UK voting to leave the economic and political bloc. We have already confirmed that the Islandmagee Gas Storage Project is viable without EU intervention and, on being appointed CEO, one of my main concerns was the amount of time and funds that were being spent on chasing EU funding with no certainty. We are pleased to have this confirmation, which is in line with our predictions, and look forward to commencing the tender process more rapidly in the coming months."
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