Plans to build the 3-MW Los Pinos small hydro project in southern Chile have come to a halt after certain conditions to advance the EPC contract were not met, BNamericas reports.
Schwager Energy’s subsidiary Los Pinos and Shenyang Yuanda Commercial & Investment signed the US$14.2 million contract for the run-of-river plant in Ensenada, Los Lagos region, in 2017.
In a filing sent to securities regulator CMF, Schwager said the conditions that were not verified were related to signing of a financing contract on the part of Schwager and the issue of an insurance policy for the financing by Sinosure.
The Chilean company, which has notified Shenyang of the EPC contract’s termination, highlighted that the latest developments have taken place “in the framework of a national power market with decreasing tariffs.”
In November 2016, HydroWorld reported that construction on the project was to begin in June 2017 and it was anticipated to begin operating in 2018.
Schwager’s energy project portfolio also includes the 5.6-MW Condor and 4.5-MW Espuela hydroelectric plants.