Ann: Supreme Court of Mexico upholds San Quintin project, page-2

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Supreme Court of Mexico upholds San Quintin project

- Supreme Court of Mexico unanimously upheld legislation approving the project
- Ruling clears final legal hurdle for commencement of construction

Melbourne, New York, August 23, 2018

Fluence Corporation Limited (ASX: FLC) is pleased to announce that legislation to approve the construction of the San Quintin desalination plant has been upheld in a ruling by the Supreme Court of Mexico. The project, which will provide 5.8 million gallons/day (approximately 22,000 m3/day) of potable water to the region of San Quintin, Baja California, will commence construction as scheduled by the end of Q3 2018.

The milestone project for the customer, Comisión Estatal del Agua De Baja California (CEA), the State Water Commission of Baja California, is the first non-recourse project funding arranged by Fluence. The project calls for Fluence to build, operate and maintain the seawater desalination plant. The Special Purpose Vehicle co-owned by Fluence and its local partners will deliver potable water to the area of San Quintin, creating a recurring revenue stream for the next 30 years, after which ownership of the plant will be transferred to the customer.

Like similar projects in Mexico, the San Quintin project faced legislative hurdles that delayed the start of construction following financial close in March 2018. Following the Supreme Court’s upholding of local legislation by the government of Baja California, Fluence will now proceed with the project and expects the plant to be fully operational within 20 months of construction commencement.

Commenting on this ruling, Fluence Managing Director & CEO Henry Charrabé said: “We’re pleased that the Supreme Court of Mexico upheld the legislation, removing the last potential legal obstacle to begin construction of the San Quintin desalination plant. We are looking forward to commencing construction and to begin delivering urgently needed fresh water to the region of San Quintin.”