It’s with fits of laughter I write on the latest ‘hocus pocus’ now coming out of the beleaguered corporate shysters that are Andalas Energy & Power (LON: ADL). In response to my article this morning they’ve hastily clobbered together an RNS. You can read the bullshit HERE
In that RNS released at 1:32pm this afternoon Andalas confess that ‘Jambi 1 IPP’ is now a ‘Paper Project’. What that means is that it is an ‘idea’ or as I term it a ‘CONcept’. As proven today ‘Jambi 1 IPP’ does not exist in any way shape or form in any Indonesian government department or state run/controlled company! Of course the RNS Clarification is any thing but a ‘Clarification’ where are the costings and the funding?
This from the RNS is very telling:
* Jambi-1 is the name used by Andalas for the project. This is an admission that ‘Jambi 1 IPP’ doesn’t exist other than on paper. Take a bow Neville Chamberlain..
* The “key contractual, technical and financial project milestones to be
achieved prior to the consortium making its final investment decision”
referred to in the Announcement include: None of the ‘Milestones’ can be achieved as there is NO MONEY
+ completion of the front end engineering and design study: Can’t be paid for without a Placing
+ execution of gas sales and power purchase agreements: Can’t be progressed unless they have $12,500,000-$15,000,000 in the bank
+ execution of an engineering, procurement and construction contract: Can’t be executed as they have to have the funds in-situ
+ contracts for the purchase of the power packs and other equipment: Again can’t be executed as they do not have the funds
+ execution of debt finance agreements: No one is going to give this lot $12M-$15M. So it’s a massive diluted #Placing to keep the lights on
+ execution of operating and maintenance contracts: More pieces of ‘Paper’.. Can’t be executed as all of the above have to be paid
+ licences relating to the facility and transmission lines: Again licenses will not be granted as there is no cash.
* The consortium expects the project to be included in Indonesia’s
electricity supply business plan (‘RUPTL’) prior to execution of the power
purchase agreement.PLN nominates projects to the RUPTL annually.However,
the Minister of Energy and Mineral Resources may direct PLN to include
projects on the RUPTL at any time: The ‘CONsortium’ can’t expect the ‘Paper Project’ to be incorporated into the RUPTL as the conditions precedent can’t be foreseen 3-4 years hence. Not forgetting that little bug bear of zippo cash! Hocus Pocus! And none of the above can get onto the RUPTL before 2020 and that’s only if they’ve spent at least $15,000,000. Money they simply do not and never will have.
What todays RNS tells us is that Andalas are about as far away from an IPP as I am from going to the moon in my car and that Cantor Fitzgerald has got them to spell it out in ‘Corporate Speak’ terminology to try to get them off the hook and limit todays damaging expose by Yours Truly.
Make no mistake both AIM and The FCA as well as their Nomad will now be doing there own ‘Due Diligence’ on exactly how this ‘Paper Project’ can advance without financing. That will or should entail making direct contact with all the relevant Indonesian Authorities. Which will be most enlightening.
As for Andalas and their hoards of BB poltroons they’ll be screaming just how super dooper this RNS is and how a CONpany with less that $100k & circa $1,000,000 in liabilities is the best thing since sliced bread. Hey but hang on a ‘Nuttals Momento’ Except the one big fat question that none of them can and wont answer but needs answering.
Just where the fook is $15,000,000 coming from?