To build its portfolio, Pan American Hydro pursues the following strategy for project acquisition and development:

Acquisition:

• Grassroots Projects: Here, Pan American Hydro explores targeted areas that meet our core criteria and starts to research potential properties, working towards securing land rights and water concessions.
• Early Stage Acquisition: Pan American Hydro acquires the rights to greenfield projects that have already been identified, but whose owners do not have the skills or financial capabilities to move forward towards construction and operation.

Development

• Independent Developer: Pan American Hydro identifies, acquires and pursues development of a small hydro power project on its own, which includes managing all phases of the development process (i.e. engineering, securing Power Purchase Agreements (PPA), arranging appropriate financing, and construction).
• Development in Partnership with local partners: Pan American Hydro identifies and develops small hydro power projects on the land holdings of local partner companies (communities, municipalities, and industrial companies) and sells the power to the partner and to the grid accessed by local communities.

Depending on a variety of factors, Pan American Hydro may be open to the sale of projects to potential purchasers that may include larger developers, utilities, or financial institutions. This would typically be at the earlier stages of the development process after the necessary permits have been secured and the appropriate engineering studies have been completed and have confirmed the project's potential.