January 15 (Renewables Now) - Schwager Energy SA (SCL:SCHWAGER), through its unit Los Pinos SpA, has unilaterally terminated a contract it awarded to China’s Shenyang Yuanda Commercial & Investment Co Ltda for the construction of a 3-MW mini-hydro plant in Chile’s Los Lagos region.
The Chilean industrial and energy services company announced on Monday in a regulatory filing that it had failed to obtain financing for the project. A loan from a bank in China was supposed to cover 85% of the financing.
In late December 2017, Los Pinos SpA awarded Shenyang Yuanda a USD-14.2-million (EUR 12.4m) engineering, procurement and construction (EPC) contract for the hydropower plant (HPP) project. However, the job depended on certain conditions being met within an established timeframe.
Los Pinos SpA's management has now decided to terminate the contract.
The now-scrapped Los Pinos mini-plant would have had an annual output of 16.6 GWh.
(USD 1.0 = EUR 0.87)