ForceField Energy Inc., an international manufacturer and distributor of energy products and solutions, yesterday announced that it signed a Letter of Intent (LOI) with Empresa de Servicios Públicos de Heredia (ESPH), a utility company based in Heredia, Costa Rica, for the installation of 19,000 of its LED streetlights to replace existing lighting in ESPH's territory. The project is estimated to generate more than $21 million in revenue for ForceField over the ten-year term of the agreement based upon a shared savings model.
Under the terms of the agreement, ForceField will provide and install its Model SL3 streetlight series in various wattages and arrange for the removal and disposal of the utility's existing streetlights. ESPH will provide ForceField with a pre-determined percentage of the value of energy and maintenance savings generated by the LED retrofit project over a 10-year period. The commencement of the project is subject to the execution of a definitive agreement between the parties and financing to be secured by ForceField to purchase the 19,000 LED streetlights; both of which are expected to be completed on or before September 30, 2013. ForceField will receive support and collaboration for the financing from ESPH.
Richard St-Julien, ForceField Energy's Chairman, commented, "We are honored to be selected for this project by ESPH, which is the first of its kind in Costa Rica. This project will yield significant benefits for the residents and businesses throughout Heredia, as well as important energy savings and a reduction in the level of carbon dioxide emissions. The shared savings model is an innovative solution we have designed to meet our client needs and generate significant revenue for ForceField; and is indicative of our business model to deploy our cost efficient, environmentally friendly energy products and solutions around the world."
