Rame Energy, an independent power producer and power project developer, has signed a number of commercial agreements and a contract to sell two existing wind projects under development to InterEnergy Holding, a leading Cayman based owner of power generation and distribution assets in Latin America and the Caribbean. InterEnergy recently bought the Raki and Huajache projects in Chile, as announced on 6 January 2016.
The commercial agreements comprise service contracts to provide ongoing commercial and administrative services to the Raki and Huajache projects and to provide technical services to assist in the development of generation opportunities with InterEnergy's Chilean LNG distribution business.
The contract for the sale of Rame's combined 15 MW Punta Chome and Raki Sur development projects to InterEnergy, in return for certain milestone payments, has also been executed. Punta Chome is a 9MW on-grid wind project located in the south of Chile.
On 23 March 2015, the company announced that it had entered into an agreement with EREN Développement (EREN) which would allow EREN to acquire the project following the completion of additional development work. EREN and the company have agreed to terminate this agreement so that Rame may continue to develop the project in partnership with InterEnergy.
Raki Sur is a 6MW on-grid wind project located in the south of Chile, adjacent to the Raki project which was sold to InterEnergy in January this year.
Under the terms of the contract, InterEnergy will make a series of payments to Rame including milestone payments of at least US$2.025 million contingent upon the Company meeting various development objectives. When Punta Chome and Raki Sur reach "ready to build" status, the development phase of the project will be complete and the construction phase can commence, triggering the final milestone payments to Rame.
CEO Tim Adams said
"We are delighted to be working more closely with InterEnergy on these projects. Our expanded relationship with them in Chile underpins our pipeline of development projects and reinforces our view on the attractiveness of the Chilean power production market. Having designed, built and sold the Raki and Huajache projects, we are ideally placed to operate and maintain them on behalf of InterEnergy. Their on-going interest in our high quality pipeline in terms of Punta Chome and the Raki Sur extension allows us to progressively monetise these projects as part of the further development of our overall pipeline of more than 300MW's in Chile."