The company has received written notice from the Commonwealth
Utilities Corporation (CUC) in Saipan that the Geothermal
Gradient Well project which KUTh successfully bid for has
been cancelled. The reason given being "specifications which
have been revised". It has also come to our attention that
cancellation notices have been issued to other renewable
energy projects that have passed through the request for
proposal stage.
As stated in our ASX release dated 29 August 2012 there is
considerable uncertainty in Saipan surrounding recent
procurement arrangements and processes for a "25-year sole
source power purchase agreement with a private company to
construct additional diesel generation in Saipan. The effect
of the diesel agreement will likely be to limit the
governments' ability to contract with renewable energy
producers as promised." The latest cancellation notices
confirm our concerns that renewable energy tenders with
"Intent to Award Contract" notices issued by the CUC have
been affected by recent events.
Despite multiple efforts by the company over the last three
months to seek clarification from the CUC and the Government
of Saipan, we have received no responses to our enquiries
until the receipt of the cancellation notice dated 21
September 2012, which in itself contained very little
information.
The company is currently being advised on its rights in this
matter.
End
For more information contact: David McDonald
Managing Director
KUTh Energy Ltd
+61 2 9238 6865
KUTh Energy Limited ABN 33 125 694 920
Level 57, MLC Centre, 19-29 Martin Place Sydney NSW 2000
P +61 2 9238 6865 F +61 2 9238 7633 E info@kuthenergy.com W www.kuthenergy.com
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