UPDATE 2-Ram Power's Nicaragua project faces construction delays

Mon Feb 7, 2011 3:05pm GMT
 

* Sees additional costs of $15-$20 mln for the project

* Target dates for Phase I, II expansion extended

* Co says it has signed a new contractor for the project

* Shares touch nearly 21-month low (Adds company comments, details, share movement)

By Bhaswati Mukhopadhyay

BANGALORE, Feb 7 (Reuters) - Canada's Ram Power Corp (RPG.TO: Quote) said its San Jacinto-Tizate project in Nicaragua encountered construction delays, and was also facing higher material and labor costs, sending shares of the company down to a nearly 21-month low.

The project has about $15-$20 million of additional construction costs, the renewable energy company said in a statement.

Steven Scott, director of investor relations, said the company is moving to a new contractor as labour and procurement issues had delayed the project.

"We just have not had the luck that we thought we would have with our current contractor," Scott told Reuters.   Continued...

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