The company acquired the land resources through the acquisition of 100% of the membership interest of the Bulgarian Consulting and Development Firm FOREIGN SUPPORT AND CONSULTING LLC (FSC), an advisory firm specializing in the support of foreign companies seeking assistance to enter the Bulgarian energy market. FSC initially acquired the land resources in October 2010 with the purpose to commercially develop the property by transforming the land resources into industrial status.
As part of the Company’s global business development strategy, FSC is being be re-named into EURO SOLAR PARKS BULGARIA, LLC, and will become the first local subsidiary of Euro Solar Parks, Inc. that will be responsible for the further development of the operational business in Eastern Europe.
Based on the current local feed-in tariffs of EUR 0.37 (approx. USD 0.49) per kW, Euro Solar Parks expects an annual revenue contribution of about EUR 256,900 (approx. USD 345,600) starting from the end of 2011.
Commercial Development of the Acquired Land Resources
The land resources are located in the Karlovo Municipality, Bulgaria, and the distance to the national electricity grid measures 21 meters from the first property and 57 meters from the second one. The relatively short distances to the national power grid and the current status of the land resources will facilitate and significantly simplify the process of development.
The management of EURO SOLAR PARKS BULGARIA, LLC (EUSB) expects to be ready to start with the construction of the PV-Plant after preparing the necessary documents of development, such as detailed structural plan, and signing a contract with the regional Electricity Distribution Company. It is furthermore expected to complete successfully the licensing application in 2011 and start building the PV-Plant by the end of 2011.
Due to the favorable economic situation on sight, the management currently reviews and assesses further investment opportunities including additional land resources of approximately 50,000m2, providing ground capacity for additional PV-Installations up to 2MW.
Management Commentary on the Recent Land Acquisition
Euro Solar Parks, Inc. President and CEO Dimitrios Argyros commented, "We are very excited that the Company is well positioned for a year of aggressive growth through the land acquisition in Bulgaria, which is an advantage for the development of commercial solar energy plants. We will also continue our strategy of growth through the evaluation of new projects for possible acquisition or joint venture; while remaining committed to the preservation of the Company’s capital structure and the avoidance of excessive shareholder dilution."
Business Outlook
The Company indicated today that its business goals and strategy remain unchanged. Euro Solar Parks, Inc. will continue focusing on emerging markets which guarantee, for a period of at least 25 years, growing demand for renewable energy, attractive input charges and, much more importantly, low maintenance cost.
Maintenance costs not only include the operational maintenance of the solar power plant itself, but also interest cost, insurance cost as well as administrative expenses. Strictly following this global strategy, Euro Solar Parks, Inc. will further concentrate on the South Eastern European and South American geographical markets.
Euro Solar Parks, Inc. is a world-wide operating project developer of commercial solar power plants. The Company develops, builds, operates and manages wholly-owned commercial solar power plants with focus on the European solar energy market.
