Next Energy announced the cancellation of the solar plant signed with Governor Jaime Bonilla’s administration.

Company representative Héctor Martínez said in a letter sent Monday to the State of Baja California that the company intended to carry out the project in good faith and in accordance with market standards.

However, the plant was canceled due to the refusal to issue permits by municipal and federal authorities.

This led the company to collect through Banca Afirme Bank the funds that were going to be paid by the state regardless of whether the plant was built or not.

More than one hundred million pesos were withheld by the bank despite the fact that the state government won rulings before federal courts.

“The hiring conditions negotiated with the previous administration have caused differences and misunderstandings on both sides,” Martínez added in the letter.

Next Energy General Director Eugenio Maíz Domene and Baja California Secretary of the Treasury Marco Moreno Mexía held negotiations that were initially distant, but have managed to reach an agreement.

The company commits in its letter to carry out all actions to cancel the project, return the withheld federal funds and prevent any legal action.

In Tijuana, Baja California Governor Marina Avila announced the agreement with Next Energy was definitely cancelled. The state considered the photovoltaic plant project as technically and financially unfeasible.

With the decision, about 12 billion pesos or around $600 million in Baja Californians funds were saved.

The governor assured these funds will be used for the betterment of Baja Californians.

State Secretary of the Treasury Marco Antonio Moreno Mexía explained that since the project was unfeasible both in its execution and in its financial plan, work was carried out both through legal means and through direct dialogue with Next Energy representatives to achieve a cancellation agreement.

The official added that at the beginning of the administration it was determined that the photovoltaic plant was the most risky specific project for the public finances of the State, for which immediate actions were taken that will result in the return of 123 million pesos that had already been held in trust by the company.