NEW YORK, Jan. 4, 2012 /PRNewswire/ --3Power Energy Group Inc. ("3Power" and "the Company") (OTCBB:PSPW) (Frankfurt:PSD) is pleased to announce that the company entered into a frame agreement with an Albania based investment group to acquire 75% of the concession rights to develop Hydroelectric power ProjectonShalaRiver, inAlbania,ofalicensedtotalinstalledpowerof127.6MW.
The BOT Concession Agreement with the Ministry of Economy, Trade & Energy of the Republic of Albania is approved with Council of Ministers Decision of Republic of Albania.
The agreement comes as a result of the company's one year of work allocating Hydroelectric power projects in Albania which is one of the world's richest water resource countries with very high demand for electricity in the domestic and export market. Preliminary due diligence demonstrates an evidence of project feasibility and substantial investment returns. Hydroelectric Power projects development is a verystrong sector in Albania and favored for long term financing by major financial institutions operating in the country.
Certain development work has been performed by the Albanian partners and project initiators. Upon successful closing of the definitive acquisition agreement 3Power will undertake the project detailed design, finance structuring and bankable study. The concession market value is about USD20M and project estimated investment cost is around USD 180M. The project will be planned for grid connection in 2015. Further Development cost and project equity will be provided by 3Putilizing proceeds from private placements planned soon by the company.
The company continues its efforts to secure and complete its pipeline of projects in Europe and Latin America aiming at creating a regionally diversified portfolio of projects in the Solar, Hydroelectric and wind energy sectors. The closing of this concession acquisition will crown the company efforts in penetrating the Balkan market and will pave the way to acquire more projects cementing the company market position in renewable energy sector.
Forward Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to 3Power, its business and prospective development plans. These forward-looking statements can be identified by the use of terminology such as "subject to," "believe," "expects," "plan," "project," "estimate," "intend," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy.Although all of the forward-looking statements set forth in this press release are believed to be reasonable, actual results may differ materially from those expressed in forward-looking statements as a result of factors outside of the control of 3Power. 3Power cannot provide assurances that any prospective matters described in the press release will successfully close or otherwise be completed or that 3Power will realize the anticipated benefits of any such transactions. Important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in 3Power's Securities and Exchange Commission filings.Readers are cautioned not to place undue reliance on forward-looking statements. 3Power does not undertake and specifically disclaims any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.All forward-looking statements should be regarded solely as 3Power's current plans, estimates and beliefs.
SOURCE 3Power Energy Group Inc.
