2 weeks ago
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CAC 2000 Limited is teaming up with Kaya Energy Group, the Dominican Republic-based subsidiary of Tropical Battery Company Limited, for the design, installation and maintenance of grid tied solar photovoltaic systems energy efficient air-conditioning units and LED lighting in six public hospitals and 16 other public facilities across Jamaica.
The agreement further leverages the energy partnership between CAC and Tropical, and puts CAC further along the path of diversifying from being just an air conditioning company.
The combined project value is in excess of $500 million, according to head of ENRVATE and chairman of CAC 2000 Steven Marston. The execution period is April 2024 to August 2025, plus a one-year follow-up defects liability and maintenance period.
Marston says the CAC/Tropical joint venture company, called ENRVATE Limited, could not qualify by itself for the project, but is still part of the team.
“The formal joint venture partners had to have a certain amount of experience, and ENRVATE didn’t have that,” Marston told the Financial Gleaner.
Instead, CAC is partnering with Tropical subsidiary, Kaya Group, to execute the project.
“That’s who we’re working with and the reason why we’re working with them is they have a tremendous amount of solar experience. Whoever works on the project upfront must have solar experience,” Marston said.
He said while 15 months is a short period to execute on the project, the partners have the necessary competence and experience to finish the job on time and on budget.
“We have, the design work completed, and we have ordered the equipment and the solar panels and everything. They’re expected to come in January or so, and we will be installing throughout the period January to August next year,” Marston said.
The $500 million project should further boost CAC 2000’s income.
After a string of negative quarters over the past two years, the listed air quality company, is back in the black. For the third quarter ended July 2024, CAC 2000 realised a profit of $11.72 million, a 143.6 per cent reversal of the $26.87 million loss for the similar quarter in 2023. The turnaround came on the back of a 22.29 per cent increase in revenue, which climbed from $251.26 million to $307.27 million.
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