EMN Energy

Projects
Portfolio

HONDURAS

Santo Domingo, Dominican Republic

May 2021
EMN Energy Projects
Portfolio

Executive
Summary
Prepared to the Attention of:

GLOBAL PROCURE
GROUP, LC (GPG)800 MAINE AVE SW SUITE 200
WASHINGTON, D.C. 20024-2811
USA

We look forward to establishing a successful communication with

your team, and the opportunity to answer any of your inquiries
about the business opportunities presented herein.

Best regards,
Denny Núñez, BE
Electromecánica Núñez
Santo Domingo, DR
Confidentiality notice
Each recipient of this Project Executive Summary (PES) agrees that all of the information contained
herein is confidential, that the recipient will treat information confidentially, that the recipient will not
directly or indirectly duplicate or disclose this information without the prior written consent of
ELECTROMECÁNICA NÚÑEZ SRL, and that the recipient will notify ELECTROMECÁNICA NÚÑEZ SRL
immediately when it becomes aware that this information has been disclosed.

By retaining this PES, recipients acknowledge that they have read, understood and accepted the
terms of this notice. This notice shall be governed by and construed in accordance with the laws of
the Dominican Republic.
 Prepared by:
Electromecánica Núñez SRL, PEng
RNC: 131-18138-4
Calle Rafael Augusto Sanchez
#86.Piantini. Santo Domingo.
http://www.electromecanicanunez.com/
TEL: (809) 860-7581 (809) 792-5036
Honduras’s energy sector overview
Undoubtedly, renewable energies play a leading role in the recovery of the country's
economy, mainly in these times of the COVID-19 pandemic.

Industrial parks in the southern sector of the country provide permanent energy supply and
contribute to mitigating the emission of greenhouse gases in this sector.

This photovoltaic electricity authorization plan has come to mitigate the country’s energy
dependence on the national grid, with the use of renewable energy.

Aiming to attract foreign investment, the country’s government passed a law of Promotion to
the Generation through renewable methods, which gives special incentives for those who
generate energy in this way. Some of these special incentives are exemptions in import tariffs
and other legal incentive of 10% on the tariff basis, the first ten (10) years tax exemption,
and a sovereign guarantee on the debt issued by the Ministry of Finance to all PPAs signed.

Electromecánica Núñez SRL is currently holding an energy projects portfolio integrated by

three solar energy facilities, two of which are currently operating, and one additional hydro
power plant to be developed, for a total capacity of 194.5 MW to be installed and operated.

Image 1. Honduras map

Project’s location information
a. Marcovia Solar Power Plant (Operative)
It is located in the municipality of Marcovia, department of Choluteca. Its geographic
coordinates of reference, for the central point of the photovoltaic plant are:
Latitude: 13 ° 16 ’50.75” 14
Longitude: 87 ° 15 ’44.55” 0
The area that is used in the implementation of this plant is 158.30 HAS (110.37 mz) of
industrial roof.

b. Nacaome Solar Power Plant (Operative)

Nacaome Solar Plant is located in the municipality of Nacaome, department of Choluteca,
the geographic coordinates of reference are:
Latitude: 13 ° 30 ’05.47” N
Longitude: 87 ° 33 ’08.03” W
The UTM coordinates of the extreme points of the plot:
X: 441, 039.00m E
Y: 1,495,005.00m N
Zone: 16P
Ground Elevation: 30.0 m AMSL

c. San Lorenzo Solar Power Plant (to be developed)

San Lorenzo Solar Plant is located in Santa Barbara, Quimistan, Honduras, the geographic
coordinates of reference are:
Latitude: 15.361617°
Longitude: -88.205612°

d. San Francisco Hydro Power Plant (to be developed)

San Francisco Hydroelectric, a 1.8 MW plant (with a 5.1 MW limit) located near Tegucigalpa
in the Republic of Honduras, feed by San Francisco River, next to Danlí community, El
Paraíso. Dam coordinates - 1536408N 569916E.
Technical data
MARCOVIA SOLAR PV PLANT – 80 MW
The MARCOVIA SOLAR will be upgraded to hold an 80 MWp capacity replacing current panels
and installing modern 550 Wp units. Currently, the photovoltaic plant has an operating power
of 42.3832 Mwp distributed in 23 units of 1.5 Mw, with two Inverters of 750kw each and a
Plant of 500kw with a 500kw inverter unit. For the evacuation of the energy produced, 23
transformation centers were installed equipped with a 1,700kva machine equipped with a
630kva machine.

For the evacuation of the energy produced, it was located in the energy center on the plot
itself, from where the ONIT evacuation line will start to the designated position in the
corresponding substation, through which the connection with the network of the National
Electric Power Company (ENEE).

NACAOME SOLAR PV PLANT – 100 MW

Nacaome Solar PV Plant will be upgraded to hold a 100 MWp capacity replacing current
panels and installing modern 550 Wp units. Currently, the plant is a photovoltaic Solar Park,
farm type (Tracking Solar) of 55 MWp. In the first phase 4.7MW were installed and in the
second stage, 50.3 MW were installed, operating a total: 55.0. Power Plant: ENEE Sub-
Station, in Choluteca, temporary 230kv bus at 34.5 kV.

The solar plant consists of 11 sub-installations of 4.8 MVA (Type A) and another of 2.4 MVA
(Type B). There will be 204,700 of 330 Wp modules. The modules were installed in the frame
of a single axis solar tracker, 3 rows in landscape, 60 module configurations. The trackers
are 8.75 meters apart, with a turning action of ± 55º. The photovoltaic modules are grouped
in series of 30 modules, thus reaching 1500 Vdc. These groups link modules into harness
solutions and then to DC junction boxes (level 1 boxes), in groups of 18 to 32 inputs. From
these boxes, the aluminum lines go directly to the inverters.

The inverters transform the direct current generated by the solar modules into AC. Investors
are indoors. Within the same base, MV transformers were mounted to increase the voltage to
34.5 kV for subsequent transport. The photovoltaic plant is then connected to the main
transformer in the step-up substation, increasing the voltage from 34.5 kV to 230 kV. Each
sub-installation has a comprehensive management system for data recording, which allows
monitoring of the system's operation.

Contract Type Power Purchase Agreement (PPA) for twenty (20) years, with the government of
Honduras, through the National Electric Power Company. (ENEE), empowered to purchase
energy and power from the National Interconnected System to the Central American Regional
System and to Large Local Consumers.

The project has all the necessary Permits and licenses in Honduras, the permits authorized
by the Regional Electric Interconnection Commission (CRIE).

The term of this contract with ENEE is for the concession of 20 years, counted from the date
of commencement of commercial operation. For the purposes of payment of the energy and
host power, to the special and temporary benefit, the base price of energy has a value of $
154.45Mwh and the base price of power has a value of $ 8.92 Kwms, values that were
published in the Official Gazette. La Gaceta on January 15, 2014.

SAN LORENZO SOLAR PV PLANT – 12.5 MW

Desarrollos Energéticos Granja Solar, S.A. (DEGSA) has been developing the 10MWn-
12.96MWp San Lorenzo Project in the State of Santa Barbara, Honduras. The Solar PV
project will spread over an approximate area of 28 hectares or 70 acres. The solar resource
at the site is adequate for good energy generation and the site is found to be technically
feasible for energy generation by Solar PV technology.

The project is expected to use monocrystalline dual glass modules and decentralized
inverters. The electricity generated by the Solar project will be evacuated via a 34.5kV
overhead grid connection 8.3 Km to Naco Substation. The Naco Substation will evacuate
generated power onto the Honduras national grid. The power generated by project will be
metered as it feeds into the substation. Empresa Nacional de Energía Eléctrica (“ENEE”) will
be the sole purchaser of all the electricity generated by this project. Term of the PPA Contract
time is 20 Years from Commercial Operation Date, and 50 Years for the concession.

SAN FRANCISCO HYDRO POWER PLANT – 1.8 – 5.1 MW

The San Francisco Hydroelectric, a 1.8 MW plant (with a 5.1 MW limit) located near
Tegucigalpa in the Republic of Honduras, will be owned by Electromecanica Nunez, SRL (EN)
(“the Company”). The Dominican Republic-based corporation will sell 10,052.37 MWh/year
electricity into the power grid from the power produced by the hydropower plant via a
congressionally approved Power Purchase agreement at a rate of $114.14MWh with an
annual increase of 1.5% and a 20-year concession with purchase guarantees. To date the
project has obtained all required permits to operate under the Honduras legal energy
production framework, also completed the necessary studies for the different government
technical divisions as, geotechnical and hydrological studies, as well as a Power Purchase
Agreement (PPA) with the National Energy off-taker Empresa Nacional de Energía Eléctrica
(ENEE), which secures operations for a 20 years term.
Current legal documents
 Operation Permission
 Environment permit
 ICMA, approved
 Taxes paid to the state and municipality
 PPA contract of $0.15 /KWh, generated, 20 years term

Investment profile
Electromecánica Núñez is willing to receive an investor to partner with, define and reach an
equity/debt agreement in order to acquire and operate the energy facilities, that will take an
expected investment of US$ 200,000,000.00

Combined Projects Summary - Portfolio of 194.3 MW (total capacity)

Capacity:
194.30 MW
Projects location - Honduras
Project Highlights
Tariff – USD 114.00/MWh + 10% Benefits+ IPC Index
No Income Tax 10 years, no duty Tax Plant Equipment
PPA Term – 20 Years
Expected Total cost – USD 200,000,000.00
Investment
Total Equity – USD 140,000,000.0
Offering
Total Debt – USD 60,000,000.0
Financing in USD
Local Debt
Rate of interest – 6.5%-7.5%
Financing
Loan tenor – 10 years
Star of Construction - August 2021
Project Milestones
Commercial operation - October 2021
Annual Calculations
Annual Energy and Economic Production

Capacity Hours/y
Source Energy (MWh)
MW ear
Combined 194.30 1985 385,685.50
Total 385,685.50

PPA rate - $114.14 /MWh

O&M Costs - $350,000.00 /year
Loan $200,000,000.00 year - 0

Loan payment - $27,000,000.00 /year

Yearly production $44,022,142.97 /year

Initial Investment $200,000,000.00

Year 0 $200,000,000.00
Year 1 $183,327,857.03
Year 2 $166,655,714.06
Year 3 $149,983,571.09
Year 4 $133,311,428.12
Year 5 $116,639,285.15
Year 6 $99,967,142.18
Year 7 $83,294,999.21
Year 8 $66,622,856.24
Year 9 $49,950,713.27
Year 10 $33,278,570.30
Year 11 $10,393,572.67
Year 12 $54,065,715.64
Year 13 $97,737,858.61
Year 14 $141,410,001.58
Year 15 $185,082,144.55
Year 16 $228,754,287.52
Year 17 $272,426,430.49
Year 18 $316,098,573.46
Year 19 $359,770,716.43
Year 20 $403,442,859.40
Cash flow forecast
Project Financial Profile
$500,000,000.00

$400,000,000.00

$300,000,000.00

$200,000,000.00

$100,000,000.00

$0.00

$100,000,000.00

$200,000,000.00

$300,000,000.00
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
NACAOME 55 / 110 MW

200 Modulo PV de 550watt a UD$ 250 = 50 mm

Cambio total del cableado y canalizaciones = 9 mm
Cambio total de inversores = 26mm
Ampiacion sub-estacion = 15mm

MMARCOVIA 42 / 90 MW

164,000 Modulo PV de 550watt a UD$ 250 = 41 mm

Cambio total del cableado y canalizaciones = 6 mm
Cambio total de inversores por 30 de 3MW = 20 mm
Ampiacion sub-estacio 90MW = 11 mm
Cambio de motores y partes electric traver 12 mm
End of document