Phase 2 is effectively ready to go. I mean, it is permitted, design, engineering, construction, contracting is ready to go. We could hit the button tomorrow, quote unquote. We are in negotiations with half a dozen counterparties for long term commitments to Phase 2. Having those commitments in hand is something we of course want to have before we commit the capital. I really don’t think we’ll need to commit much capital. I think most of it will be funded with tax exempt debt borrowings and we have everything set up to be able to hit the market on that. Obviously, the financing will only look more attractive with long-term commitments in hand. But look I think the contract for phase one that we executed during the fourth quarter is great to have.
It’s something that will result in more consistency and stability in revenue and cash flow at Rapano, during the remainder of 2023. It doesn’t kick in until April 1st, so we won’t see much of that in the first quarter, but starting in the second quarter we’ll see the benefits of that contract.
Giuliano Bologna : That sounds good. And just going back to the point you just made about on the permitting side, just curious, is that the permitting for the underground cavern? It sounds like you were saying you guys are pretty much there and can start, you’re going to your shovel already this point to get moving.
Ken Nicholson : Yes. No, what is permitted is new dock above ground storage tank and additional rail construction. What is incremental to phase two is the below ground caverns, which is, which is massive, that is not yet permitted. The permitting’s underway. It’ll should be completed in, I don’t know, a few months. But it’s a process. I think in the deck we talk about phase two on our expectations for approximately $40 million of incremental EBITDA contribution. That EBITDA contribution is, does not include the impact of any caverns. The caverns are important and it’s a big, big area of focus for our team, but any revenue in EBITDA from the caverns would be incremental to the 40 million. The 40 million is just for the above ground storage facilities dock and what have you. So everything’s permitted except for the caverns we’re in the application process with the state’s, EEP and I think that’s got a few more months to go.
Giuliano Bologna : That’s great. I think, I touched on pretty much everything across the assets there, so I really appreciate the time there and I’m going to cut back in the queue.
Operator: Thank you. There are no further questions at this time. I’d like to turn the call back over to Alan for closing remarks.
Alan Andreini: Thank you all for participating in today’s call. We look forward to updating you again after Q1.
Operator: Ladies and gentlemen, this does conclude the program and you may now disconnect. Everyone, have a great day.
