EDC and Hot Rock set up joint venture for project in Peru

Survey work at the Quellaapacheta project, Peru (source: Hot Rock Peru via flickr/ Geothermal Resources Council, creative commons)
Alexander Richter 3 May 2013

Philippine EDC and Australian Hot Rock Ltd. set up Geotermica Quellaapacheta Peru joint venture for the Quellaapacheta geothermal project in Peru.

This morning, Philippine based geothermal company Energy Development Corp. (EDC) announced that one of the units of the company and its Australian partner Hot Rock Ltd. (HRL) have set up a joint-venture firm for a geothermal project in Peru.

In the stock exchange disclosure, EDC said EDC Geotermica SAC and Hot Rock Ltd.’s Hot Rock Peru SA formed Geotermica Quellaapacheta Peru SAC in which the former will own a 70-percent interest.

“A company named Geotermica Quellaapacheta Peru SAC was established in Peru for EDC and HRL to jointly own, and develop the Quellaapacheta Authorization,” said EDC.

EDC has already paid HRL an initial $400,000 for the transaction. The amount is refundable in the event that EDC withdraws from the Quellaapacheta project within six months.

A final payment of $600,000 will have to be made in 15 months if the Lopez firm decides to pursue the project.

EDC is the world’s largest integrated geothermal energy producer with its portfolio of steam fields and power plants in the Philippines, accounting for 62 percent of the total installed geothermal capacity.

EDC and HRL are engaged in geothermal projects in Chile.

In a separate disclosure, EDC will push through with the listing of P7 billion fixed-rate bonds on May 3. The bonds have a tenure of seven and 10 years due on 2020 and 2013, respectively.

Source: Business Mirror