Netherlands-based Greenergy Holdings Inc. has entered into a preliminary agreement with Filipino company Hydroring Capital BV for the development, operation and management of "multiple hydropower projects" in the Philippines, HydroWorld.com has learned.
According to a term sheet submitted to the Philippine Stock Exchange earlier this week, the joint venture will be a 60-40 equity arrangement in which the majority is controlled by Greenenergy.
Greenenergy says the new company will operate under the laws of the Philippines and that it will have an authorized capital stock of about US$5.2 million.
Should everything go as arranged, the parties will sign the joint venture agreement within 121 days of the signing of the term sheet.
The joint venture will work to develop hydroelectric plants, infrastructure and other facilities.
HydroWorld.com reported in August that the Philippines' Department of Energy has announced plans to auction at least 40 prospective mini-hydro sites for exploration and development in the fourth quarter.
The country's 31.45-MW Binga hydropower plant also recently received a Certificate of Compliance from the Energy Regulatory Commission.