Since the world is currently gripped by the spread of the Coronavirus, the Island Power team would like to update on the situation for IPS and the projects in our portfolio.
Currently we are not seeing a larger impact, as no project have been cancelled or there are no indications that the overall situation will impact on medium to longer term. In the short term there will potentially be some delaying effects due to the conditionings and travel restrictions that have been imposed in several areas. Of course the team is keeping the travels to a minimum. Both China, Taiwan and Malaysia, there are quarantine rules imposed. This in general of course affects the speed in the process and communication, but some actions needs to be pushed forward.
Our assessment from our local offices, is that the situation is starting to seem controlled in China and most parts of Asia, although the fear that a second wave of infections can occur is growing. As known, Asia in general is concerned about Europe and US traveling, with most of the Region today imposing 14 day quarantine for travellers returning from Europe and US.
The time-window impact of the Coronavirus is hard to estimate, but the demand side for our projects and solutions remains unchanged. There might be an impact of supply, delays for construction activity (depending on length of the crisis), as well as funding may be effected, if institutions and investors become more restrictive due to current uncertainty. But a lot of engineering, planning and design work can proceed, and here ISP is still fully active and making good progress.
Island Power continues to monitor the situation and have been focusing on projects where we have a local presence. In those we can keep working depending on technological solutions, in order not to have a stalling effect on our projects. A longer update on the situation for IPS will be sent to the shareholders in the coming days.
There are still many lessons to be learned on how global society will really affect us all, and in many ways, this is also directly paralleled to many of our climate change threats as well.
Take care of yourself and each other and stay safe.