Ann: Fluence to build US$8.4m Build-Own-Operate Plant in Peru, page-22

Hi EB,

You have just encapsulated the attractiveness of BOOT. But sadly, the market fails to understand the challenges FLC has surmounted to get to this point of their life cycle.

To even convince a US financial institution to set up a US$50m non recourse facility must entail guarantees on the background we don't know of. The financial institution who lends to FLC must contend with country risk, governance and contractual risk, credit risk of the end customer who is often the municipality, off take risks etc. With all these risks, the FI must have a lot of confidence on FLC that this US$100m BOOT will work out. Any lesser player will not get the non recourse loans that the FI has extended to FLC. It's an endorsement as I see it.

But yet, is it any wonder there is no other institutional interest in the stock other than US Cleantech designated funds who are familiar with the investment landscape of water companies. Aussie instos must be waiting for FLC's profitability to take place before they are prepared to venture in. Sadly, my take is the stock will go sideways till May next year.

This wait will separate the boys from the men. In the meantime, wishing you happy holidays.