Canadian renewable energy firm Reservoir Capital Corp. announced it has signed a memorandum of understanding to acquire a 75 percent interest in six small hydroelectric projects in Turkey.
Construction of the small hydro projects is scheduled to begin in the second half of 2010, with the first hydropower plant coming on-line in early 2011 and the remainder in stages before the end of 2012, reports indicate. The projects have a planned combined capacity of about 30 megawatts, according to a press release.
Under the terms of the agreement, Reservoir will acquire a 25 percent interest in the portfolio by providing equity contributions of US$1.5 million payable by the end of March 2010, US$2.5 million payable by the end of May 2010 and US$2 million payable by the end of January 2011.
Debt financing for the projects is anticipated to be arranged through Turkish banks, with the current shareholders of the portfolio providing the remaining equity funding.
Reservoir will acquire an additional 50 percent interest in the portfolio (for a total of 75 percent) for US$17 million, which will be paid in stages as the projects are completed and fully operational.
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