Asian Energy Impact transitional manager begins due diligence on RUMS project
Octopus said the net present value of the RUMS project is 'materially more negative' than the estimate, in the base case scenario, of £13m.
Effective from today (1 November), Octopus Energy Generation's immediate priorities will be to assist finalising the 31 December 2022 and 30 June 2023 valuations, 2022 audit and accounts and 2023 interim report to lift the trust's trading suspension as soon as possible.
The process will include undertaking detailed due diligence on the trust's assets, including the construction of the RUMS project, a solar power asset based in India, the board said in a stock exchange notice.
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This is to ensure the «completeness» and «accuracy» of all information required to finalise the outstanding valuations, audit and financial reports.
The trust said Octopus have conducted preliminary analysis of the RUMS project and «concurs with the board's view» that the net present value is «materially more negative» than the estimate, in the base case scenario, of £13m.
The base case scenario was based on the assumption that construction will be completed by 31 March 2024; that the yield, once operational, will not fall materially below expectations and that the project will be refinanced by December 2024 on «equivalent or better» terms than those assumed for the estimate.
Asian Energy Impact said both the board and Octopus believe «there is a reasonable likelihood of construction not being fully completed on time». A further update on Octopus' due diligence will be provided as soon as possible, the trust added.
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