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Pampa Energia S.A. - Joint Awarding of Ensenada de Barragan Thermal Power Plant

  • May 31, 2019
  • 491 views
Source: 
ENP Newswire

Buenos Aires - Pampa Energia S.A. ('Pampa' or the 'Company'; NYSE: PAM; ByMA: PAMP) informs that, after making a joint bid, yesterday we were notified by Integracion Energetica Argentina S.A. ('IEASA') that Pampa, through a controlled company named Pampa Cogeneracion S.A., and YPF S.A. ('YPF', and jointly referred as the 'Awardees'), were awarded in the National and International Public Tender No. CTEB 02/2019, launched by Resolution No 160/19 of the Government Secretariat of Energy (the 'Tender'), in relation to the sale and transfer of rights of the Ensenada de Barragan Thermal Power Plant ('CTEB').

The Awardees will jointly acquire CTEB through a company in which they will both participate ('SPV').

CTEB is located in the petrochemical zone of Ensenada city, Province of Buenos Aires, with an installed capacity of 560 MW as of today. According to the Tender, the Awardees shall complete the necessary works in a period less than 30 months to convert CTEB into a combined cycle, which will expand its installed capacity to 840 MW. This closing to combined cycle will imply a higher efficiency as CTEB will generate 50% more electricity with the same amount of fuel (gas). Once the combined cycle works are completed, it is estimated that CTEB will be one of the most efficient thermal power units among the country's power grid.

Both open and closed cycles are under energy supply contracts with the Argentine Wholesale Electricity Market Clearing Company (Compania Administradora del Mercado Electrico Mayorista - 'CAMMESA'), set forth by Resolution No. 220/07 issued by the former Secretariat of Energy ('PPAs'), being the first one as from March 26, 2009 and expiring on April 27, 2022, and the second one executed on March 26, 2013 and expiring in a 10-year period as from the commercial commissioning of the combined cycle.

The joint investment related to the acquisition of CTEB is estimated to amount US$290 million approximately, which includes the cash amount bid in the Tender and the purchase price of a certain amount of debt securities ('VRD') issued by the trust agreement Contrato suplementario del programa global de fideicomisos financieros y de administracion para la ejecucion de obras de infraestructura energetica -Serie 1- ENARSA (Barragan) (the 'Trust'). On top of that, it is estimated that the investment for the closing to combined cycle will reach approximately to US$180 million.

As per the terms and conditions of the Tender, the SPV will be trustor of the Trust and therefore will assume the debt that, excluding the amount of VRD purchased abovementioned, the outstanding amounts to US$230 million approximately, which is estimated to be repaid with the cash flow proceeds of CTEB.

This acquisition represents an opportunity to continue growing our Power Generation segment, again showing our investment commitment towards one of the Company's core businesses and keep contributing to the development of Argentina.

Contact:

Gustavo Mariani

Tel: +54 (11) 4344 6000

Email: ri.pampaenergia.com/en

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