MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) has signed four shareholders’ agreements that would effectively implement its joint venture agreement with a Canada-based energy company for geothermal projects in Chile and Peru.
“Under the shareholders’ agreement for the Mariposa project in Chile, EDC will acquire 70-percent interest in CompañÃa De Energia (Enerco),†EDC said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
Enerco is a subsidiary of its partner of its partner Alterra Power Corp. in Chile that owns the Mariposa project. Alterra will continue to hold a 30-percent interest in Enerco through its wholly-owned subsidiary Magma Energy Chile Limitada, subject to the terms of the shareholders’ agreement for the Mariposa Project, EDC said.
For the project in Peru, the shareholders’ agreement states that a new project company will be incorporated in Peru, which would also be 70 percent owned by EDC. This will be responsible for developing the relevant Peruvian project.
“Each Peruvian project company will be 70 percent owned by EDC (through its wholly subsidiary in Peru) and 30 percent owned by Magma Energia Geotermica Peru S.A., a wholly-owned subsidiary of Alterra,†EDC said.
At the same time, EDC noted that its continued participation in the Peruvian projects and the Mariposa project is subject to EDC’s resource assessment of each of the projects in accordance with the terms of the project agreements.
The joint venture partnership with Alterra strengthens EDC’s overseas presence, EDC president Richard Tantoco earlier said.
Alterra is a leading global renewable energy company, which operates six power plants totaling 566 megawatts of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia’s largest run-of-river hydro facilities and the province’s largest wind farm.
Last month, EDC disclosed that it has partnered with Australian Hot Rock Ltd. for a joint venture development of the Quellaapacheta geothermal project in Peru.
EDC said the two companies established Geotermica Quellaapacheta Peru SAC for the project. Similar to the Mariposa project in Chile, EDC owns 70 percent of the joint venture, which would develop the Quellaapacheta project.
EDC, an integrated geothermal energy producer, has a portfolio of steam fields and power plants in the Philippines.
It remains the largest producer of geothermal energy in the country, accounting for 62 percent of total installed geothermal capacity.