Eletrobolt

To follow up our conversations, I met with the Brett Wiggs, Ranabir Dutt and others today, and have made the following clear:

1. Brett Wiggs is to document and implement a process for completion of the project under the CAA that legitimizes that the project cannot be completed to the standard required by the required actions of the Construction Agency Agreement until the new year.

2. Ranabir Dutt is to ensure that it is made clear in any communications with the project lenders that completion to the standard required by the CAA is not going to be achieved this year.

3. Ranabir Dutt is to ensure that the financing from OPIC requires some completion risk or requires a standard of completion lower than what is required for the project lenders under the CAA with all other conditions to funding by OPIC to be otherwise satisfied before completion is a possibility under the CAA.

The objective is to ensure that completion and funding risk is "hedged" between the project lenders and OPIC, or, if OPIC flakes, to ensure that we can legitimately state to the project lenders that completion will not occur until the new year.

A couple of additional points:

1. I told them not to worry about getting to a start date under the off-take agreement to achieve upside from capacity payments this year as it risked the project lenders being able to legitimatize completion this year without OPIC being fully committed.

2. There is nothing preventing the project lenders from asserting that completion has occurred or declaring a default for non-payment this year. However, I told them that we need to do the right things so that the lenders will face risk of wrongfully attempting to seek repayment if they do so.

They all seem to get the message. I will follow up with them tomorrow.

Peter.