EPI 4 Investor plc - European Property Investments

Government SupportIn August 2004, the Germangovernment passed a law toencourage providers to switch torenewable forms of energy. This lawis known as the Renewable EnergyLaw ( Erneuerbare - Energien -Gesetz / EEG ).Essentially, the main thrust of theselaws is as follows:The purchaser of electricity – in ourcase most probably the multi - nationalconcern E - ON – must purchase powergenerated by solar technologies.Not only this, the German governmenthas also laid down the price which thepurchaser must pay and the purchaseris also obliged to accept this power fora minimum period of 20 years.Detailed discussions have taken placewith the local planners and officialswho wholeheartedly support theplanned development and solar park.Interestingly, the project will mostprobably qualify for low - interestfinancing from the German KfW Bank( Bank for Reconstruction ) on twofronts. First, it is a renewable energyproject and secondly, it makes useof a former military base. Both ofthese factors qualify the applicant forlow - interest loans. Negotiations withthe German KfW Bank are on - going.This bank is owned by the FederalGovernment ( 80 % ) and theLänder ( 20 % ) and is one of the tenbiggest banks in Germany with abalance - sheet total of € 360 billion.DetailsPurchase and Development Costs ( 50 % ): € 40,000,000Projected Yield: 12 %15