Mexico Federal Electricity Commission Authorizes Additional $2.9MM in Cleanup Projects for ETI and UNAM
Monday October 23, 10:00 am ET
ETI and UNAM Get Two More Generating Plant Cleanup Projects
CARLSBAD, Calif.--(BUSINESS WIRE)--Sub-Surface Waste Management of Delaware, Inc. (OTCBB:SSWM - News) announced that the Federal Electricity Commission (C.F.E.) has authorized an additional $2.9MM USD budget for the cleanup of two additional electric generating plants located in Merida, Yucatan and Lerma located in the State of Campeche. SSWM Mexico subsidiary company, Environmental Tec International, S.A. de C.V. (ETI) will enter into a subcontract agreement with the National Autonomous University of Mexico (UNAM) to perform the work expected to start before the end of the year.
CFE has previously authorized ETI and UNAM $3.989MM USD in cleanup projects at generating plans in Nachi Cocom in the State of Yucatan and at Francisco Villa in the State of Chihuahua in order to meet compliance requirements from PROFEPA, the environmental policy enforcement regulatory agency of Mexico's Secretary of the Environment (SEMARNAT). CFE has five major electric generating plants using hydrocarbon fuel sources which have caused significant contamination at the sites.
Bruce Beattie, CEO of SSWM, stated, "Our working relationship with CFE and UNAM continues to thrive as we are pleased to have two more generating plant projects authorized for cleanup of hydrocarbon and metal contaminants bringing the total authorized work to $6.9MM USD. We expect to finalize the operating contract for the cleanup with CFE, ETI and UNAM and begin the project before the end of the year. As with our other CFE contracts, the ETI subcontract amount is subject to negotiation and project tasks, but ETI generally receives 70-75% of the authorized budget for the project and this amount is subject to increase due to engineering change orders after the project is commenced based upon final actual volumes of materials to be treated."
Beattie continued, "Many shareholders have asked us the significance of a government authorization. A written authorization from a government agency signifies that the funds have been allocated in their annual budget for the specific project and the authorization is the commitment to proceed with the work under the terms of a negotiated contract between the parties. Authorizations are typically signed by a government official of the department that has the budget for the project. In some cases ETI provides the contract proposal and the government entity authorizes all or a portion of the proposal and in other cases, the government entity already has a project and a budget which ETI reviews and accepts the authorization. The authorization is the first step prior to contract signing and signifies the availability of funds for a project as well as the government's proactive commitment to cleaning up the environment." |
