mquinones | 00:00
For all events of default with the corresponding contractual consequences, they just want us to revise everything. Is it really all the clauses tie in to the events of defaults and the consequences of the termination suspension rights? They just wanted to double-check that.
So that's one of us. They wanted to review the section 8.2 and related provisions to confirm how defaults associated with Exhibit J, which is a schedule.
Speaker 3 | 00:28
I mean, is this the which contract is this one that we have here?
mquinones | 00:38
No, this is the contract that... This is the latest version.
Fabian Velez | 00:40
That's. That's the new one.
mquinones | 00:42
Yes.
Fabian Velez | 00:42
Yeah.
Speaker 3 | 00:43
Okay, perfect.
mquinones | 00:46
Yes, this is the latest version. Let me stop sharing that contract and start sharing the agenda. Okay. Another issue that was raised is that when we discussed the performance bond, they were pretty clear on the 100% and the whole construction process.
But when it comes to the 20% of what was going to be... What was... What was the actual 20% on the operation at the operational point towards what number? So we went and saw the financial institution estimate of the 6000 and some hours.
I just wanted to confirm with you if it would be accurate to understand that based on... That would be the payment of the 20% of the payment and performance bond on the operation period.
Speaker 4 | 01:46
No, it can't be on an estimate of the maximum value of the contract.
Eddie | 01:51
When it means that you guys are going to give us the maximum time then too. Yeah, exactly.
Speaker 4 | 01:58
If you're going to go off with that, they're going to give us the 6570 hours.
Eddie | 02:03
Let's, you know, let's be clear here. We have no take or pay, we have no commitment, but they want me to insure 6000 hours, right? How does that make sense?
Fabian Velez | 02:15
Let me...
Eddie | 02:15
In what world like that doesn't even.
Fabian Velez | 02:15
As soon as the part...
Eddie | 02:18
What are we talking about here?
Speaker 4 | 02:21
Now the estimate is benefits.
Eddie | 02:22
Them runtime and I'll ensure that minimum runtime. I mean...
mquinones | 02:29
What do you and they... Didn't have a say, they just want to understand and make sure that... What is that 20%? What is your suggestion?
Speaker 4 | 02:38
What do you mean we broke it down? I don't understand what you guys are asking.
Fabian Velez | 02:41
I I'm. I'm projecting.
Speaker 4 | 02:42
We gave everything of every piece of information here I see it so what's the question here?
Fabian Velez | 02:46
I'm projecting the letter from you guys with the structure.
Speaker 4 | 02:53
We broke it down.
mquinones | 02:55
For the construction.
Speaker 3 | 02:59
Yes, what we have is a performance bump that is going to cover first construction and after that it would be related to a performance to the services to performance rendered.
Eddie | 03:16
Right? If they want us to... Yeah, they exactly... So you guys are wanting us to carry a coverage that's going to cover the maximum value of the contract when you're giving us nobody knows...
Speaker 3 | 03:35
It's not the maximum value. The maximum value is... I understand that it's in the bus. What Maria is saying is that we took as a basis for discussion purposes, those six or three hours that we're paying from GenAI.
Then it was the lab and because what they informed me is saying is what is the basis from where you're going to establish what's gonna be that about the performance one.
Eddie | 04:15
I don't know. They didn't want to give us a minimum run time, so we have nothing to go by, so we have to meet somewhere, right? I don't know. They can put me on a hundred hours and...
But as it is right now, in order for us to be able to do business with Puerto Rico, we pay a trade light insurance policy backed by Lloyd, right? Which costs us $12 million a year. If not, Puerto Rico has a terrible Moody's, right? Nobody would allow me to do business in Puerto Rico unless I carried that arm.
So I'm already paying $12 million a year on insurance. All right, to make sure that my lenders get paid. So what is the coverage, what is the minimum coverage that Puerto Rico would be happy with because we can't cover something that we're not guaranteeing? They don't want guarantees, but they want guarantees on... I don't understand it.
Speaker 3 | 05:14
Yes. It's not that they're asking for specific out... What they're asking for is a formula. So what's going to be the formula? During the discussions yesterday, they were talking about the six we talked about or discuss the 600 hours. Do you see any other formula that we can use, any other basis?
Fabian Velez | 05:41
And let me say.
mquinones | 05:43
Miguel, is Miguel on the sound? Is Miguel on the score?
Fabian Velez | 05:48
No. Me? It's not here.
mquinones | 05:50
Okay.
Fabian Velez | 05:51
At him.
mquinones | 05:52
No. I just think that I'm going to verify our files. If we have something from... This patch that can help us because I think it was a low number because LLaMA is very conservative, so maybe that might be the number we can use.
Eddie | 06:11
There you go. We need a metric... I don't... Yeah, and we don't have enough information to be able to create... We don't have the data. We don't know. It's just...
mquinones | 06:23
Yeah because it was the one engaging with LLaMA, so I don't know if that's a document that is on the SharePoint at the fan.
Fabian Velez | 06:31
I'm checking.
Eddie | 06:32
Okay, we have the same problem with our GAs, right? You can't buy gas. How much are you taking? So we had to work around that and figure it out. But I don't have any metrics. I can't put something together. I just...
Speaker 3 | 06:48
Okay, so we'll check that number by number to see if we can use that as a waste.
mquinones | 06:55
I think that's our safest bet because in honesty, they're so conservative that it might be a number that is reasonable for you guys. But we'll take care of that, and we'll send you that number as soon as we get that document.
Okay?
Eddie | 07:16
And...
mquinones | 07:18
Okay, one of the things that... This was a very important point apparently for Braba. We need... Who's going to be the point of contact for all notices and communication? It has to be someone from the three companies that are going to be signing. It's going to be responsible for everything. What do you want that person to be?
Speaker 3 | 07:39
Basically what they're saying is that they don't want to talk to the three companies, they want to talk to one of the companies and to a single point of contact that they can send documents, they can send emails. It will be the point of contact for our expectations.
Eddie | 08:01
Okay, so the way our... There's... The reason which causes all this confusion is because all the companies that I own are under the holding companies, right? So they see my tiny operations and they don't understand my structure, okay? The way this is going to be structured, okay, is Power Inc. Is a management company, okay?
It's not a provider of services, but it's a management company that serves as a management company to other companies. I have in our portfolio, we have seven companies, okay? Some of them are out there and some of them are not, right? We own different technologies, nuclear waste, energy, blah.
All right? But our expectations will be the point of contact. Okay? It was clear in the S-SPV Enchanted Rock is they're coming in number one. I own the rights to anything that's sold or moved for Enchanted Rock under contract.
I have those contracts if you ever want to see them. They cannot move or breathe in the Caribbean and Latin America without me. Okay? That's clear. Reyes Contracting is our boots on the ground. The reason that we put them in is because they have an amazing track record.
I wanted to use a company from Puerto Rico so we can give a company from Puerto Rico the opportunity. I could have gone and got back to the... I could have gone and got somebody bigger for this job. But we wanted to make sure that we give the job... Okay, and keep the money within the economy of Puerto Rico. That was very important to us.
Okay, so the point of contact, we have an office going into... We're actually going to be on top of... Okay? So we'll have our knock. We'll be there. We'll have a crew of about a hundred technicians that are going to be on the ground that are all experts. Everything we've... Everything and anything that you can understand all and everything will be done through power and it will be managed through power in so yes power expectations.
Speaker 3 | 10:07
Who would be the point of contact there at power?
Eddie | 10:11
Mr. OT... Maria London Gallagher. Mark is our president of everything here stateside. He does all our government contracts.
Speaker 3 | 10:25
But give me a name because as Maria...
Eddie | 10:28
You can point... Second is landing. Landing has gotten a place in Puerto Rico already. I'm buying a house in Puerto Rico as well. So I would be back and forth.
mquinones | 10:41
So what I'm going to introduce is that they have to send all messages to you and copy London in every notification. Does that make sense?
Eddie | 10:50
Beautiful, that's that works okay.
mquinones | 10:53
Wonderful. Well, that's what I'm going to put. It was a very important topic to them, so let's make sure we address this correctly.
Eddie | 10:59
No, yeah, we have a full... We have a full infrastructure coming, okay? 24-hour hotline. We have a sophisticated lot. We've even designed our own software with Scatter Cybersecurity proprietary software that's going to be able to link to every single thing that has been done on this project.
mquinones | 11:19
Okay, I know.
Eddie | 11:21
You're very impressed.
mquinones | 11:23
I know we will. We look forward to being impressed. Really. Okay, this... Okay, I am going to tell you this once again, and I just want to see how we can work on this together so we don't have further issues.
So we can sign this week's contract. So we brought in exhibit eight. Let me res... Exhibit eight. Excuse me one second here. You can see my screen. You're very familiar with exhibit eight. Exhibit eight is the power expectation at the Enchanted Rock operational role.
So when we had our meeting, we explained what a consortium and the three companies signed the contract and how in Puerto Rico, and the three signed the contract, they're all liable and 100% liable, right?
So we explained that and they were very clear they wanted to understand what... But what specific role because the operating agreement said something but then the proposal said something else because they couldn't clearly...
So you sent us this document that established that this was a TED Rock participation. Right. So when the F&B read it, they're like, "Well, this is not what we discussed." When this particular issue came to be discussed, the meeting was already two hours and a half.
So they didn't really go into detail because they had to go to attempt other issues, but they did say, "Look into this because..."
Speaker 3 | 13:00
I you know, I saw it as a strategy. [Laughter] They were just... I saw it as a strategy on their part. They just wanted us to know and resolve that issue. Basically, this is that we have to go and resolve this issue.
That's why you're the only addresses.
Eddie | 13:18
So really quick, Mark. So when Enchanted Rock came in to do this project with us, right? They had some convertible notes that were coming due, okay? They were in a different situation, okay? They came to help me out in Puerto Rico,
and they were in a whole different situation when this thing took long. They wound up being able to save their position by signing a 2.5-gigawatt deal with Meta, and now they're going public on June 15. Okay, they're ringing the bell on Wall Street on June...
Totally different operation now, okay? They're going to keep all the commitments, okay? In Puerto Rico, and they want to open the Caribbean and Latin America with me. So they're behind me 100%.
But what they don't need and their shareholders and the people that are taking them IPO is they don't want to come in and do what they have to. Okay? They're putting in about 100MW on this project, so I'm filling in big. They don't want to be held for ten years for a contract that they're getting no benefit from.
Okay? So all the upside, they have no upside in this, right? They're selling us a product, they're giving us EPC, they're managing everything with us. But once their scope is done, they don't need to be there. They don't serve as turbines, their reciprocal engine manufacturer, installer, and service, right? They don't service...
And all our tech have been trained at the Texas facility. So every single one of our techs, we take over once they're done, that's the only role they want to play. They don't want to be in Puerto Rico for ten years. They don't want to be in the news in the sale. They don't want to be in Belotura. They don't need and they don't want that and they were very adamant about that.
mquinones | 15:28
Yeah. Okay. So maybe we have to put in some more descriptive language. Al and I refer to you, but maybe saying that during the period when the most investments are taking place, they will be there because they're going to be supplying the turbines and getting in here and doing the construction. Once the engineer certifies that this is ready for COD and the operations start,
well, basically you're releasing them for their liability.
Eddie | 15:57
That's exactly what it [Laughter] is.
Speaker 4 | 16:01
Yeah.
Eddie | 16:01
This is... But an independent engineer, Enchanted Rock shall have no further liability after an independent engineer. That's exactly what you just said is what's there? [Laughter].
mquinones | 16:16
No, I know. I took the wording from what it says. I'm just trying to see how we can push that message across. Whereas maybe adding the issue where the most... In that like they're taking... They're going to be there responding... Well, it's the biggest chunk of money being deployed and then after that it's really operations and up to pre-pa really.
Speaker 3 | 16:37
So, Eddie, this is about Enchanted Rock going public, is this something that is public?
Eddie | 16:47
No, yeah, you can invest in it. It's inside traded, but yes, you can invest in it. It's going public for fifteen. [Laughter].
Speaker 3 | 16:59
What I mean is, if it is something that we can discuss with the F1B...
Eddie | 17:06
They're 100% go IPO, they landed a huge deal. I mean. And so they. They changed everything for them. They just hired another 500 people. They opened another 300,000 square feet of manufacturing space.
And then there they wanted to open up manufacturing in Puerto Rico, but they got scared. They said, no. Which is a shame because it would have brought at least 400 jobs to the island.
mquinones | 17:37
Okay, Pablo, we have to put on our creative thinking caps and see how we can insert some type of wording in there that can help them ease into the endeavor. Okay, so...
Speaker 3 | 17:53
Well, my argument is going to be that maybe a year ago they were willing to do this, but not now, because they're going to follow it.
Eddie | 18:02
Okay, that's actually... Yeah, that's actually what was happening. Apollo was converting some notes, and that would have taken Thomas out of running the company. So we partnered up because we thought this was going to be a fast thing.
Things changed very quickly, right? They toughened it up, but they're willing to do everything with me. They're willing to sign the contract, but it's important that they don't have any of the liability, which I get it. They're not needed for the financing for my insurance, for my payment and performance bonds. Nothing.
Speaker 3 | 18:44
They're not going to have a benefit other than that.
Eddie | 18:47
They're not going to have any benefits on... They're only their equipment. That's the deal that I have with them. They're going to come in, install their equipment, and we're buying a ton of equipment from them.
Speaker 3 | 19:00
Yeah. Edie, how are you going to run your maintenance we have?
Eddie | 19:05
Okay, so part of what we're doing is that we have a maintenance company in Texas that's coming in. Actually, the guys that are selling us the turbines. They have a full maintenance company.
I have a... I'm buying them as we speak. I have an acquisition deal with them, and they're coming down. I'm sorry. They're coming down to do all the maintenance for us. So it'll be a company that we own.
But it's a separate entity that has over twenty years of experience on turbines. I can give you that information if you need it.
Speaker 3 | 19:47
Okay, there will be...
Eddie | 19:48
It'll be... There will be under power expectations, but yes, so we... I don't know. We're using a team of guys that worked on your power plants as well. I've hired a bunch of guys that understand those power plants and have worked on all the... TN 20500.
So it's a mixture of guys that we're bringing from the states of a company that we're acquiring right now and guys that are on the island that have experience on turbines.
Speaker 3 | 20:18
Okay. So you can provide us with that information. It would be nice to have it.
mquinones | 20:25
Right, okay, we're almost there. We're done. Okay, we now have to work on the things that we have. I'm going to follow up with Hanneta for what's been being done and the different things that we have discussed. We're going to be able to incorporate into the contract. We will share with you the agenda, and we need you to just work on exhibit day, which would be very helpful.
Eddie | 20:54
The most important things are the Enchanted Rock, right? And the time. Okay, if you can fix those two things. I'm. I'm we're flexible, all right? But we but we've got to get this done.
Speaker 3 | 21:06
Okay.
mquinones | 21:07
You're going to be working on that today, Eddie, all day.
Speaker 3 | 21:10
Okay. We're going to be sending you the final version of the... Well, the final draft of the contract. So you can review it and tell us whether you agree with the changes that we make. Then we'll submit it to FMB preparer from me.
Eddie | 21:31
To prepa and then to f for be. So we're looking at...
Speaker 3 | 21:35
I don't know, probably we'll have a discussion with B's, not like a... Because it's only three agents that we had to discuss with them.
Eddie | 21:46
Okay.
Speaker 3 | 21:47
So I told them yesterday. I told them from me yesterday that we're planning to try to have that rate by tomorrow.
Eddie | 21:56
Okay. I appreciate you guys, thank you so much, Osvaldo. So you guys have a B so...
Fabian Velez | 22:02
I'll take care of everybody.
Speaker 3 | 22:04
So we'll go to launch, but you get here to Puerto Rico and...
Eddie | 22:07
And I want to say that different yeah, absolutely. Okay. Thank you, guys.
mquinones | 22:13
Thank you.
Fabian Velez | 22:13
Okay? Thank you.
mquinones | 22:14
Everyone.