Greenergy ties up with Dutch partner for hydropower projects

Business World Online

Posted on September 17, 2012 10:00:11 PM

LISTED Greenergy Holdings, Inc. has partnered with a Dutch firm to develop hydropower resources in the Philippines, the former said in a disclosure to the Philippine Stock Exchange yesterday.

The company said the partnership involves the use of “hydroring,” a hydropower concept developed by HC based on proprietary turbine innovations.

Greenergy, formerly MUSX Corp., signed a preliminary agreement last Sept. 14 with Dutch-based Hydroring Capital BV (HC) for the development, operation and management of such projects.

“Greenergy entered into a preliminary agreement with Hydroring Capital BV for the development, operation and management of multiple hydropower projects, infrastructure and/or facilities in the Philippines using the ‘hydroring’ concept, with the aim of providing affordable access to environmentally friendly and sustainable sources of renewable energy,” the disclosure read.

Under the agreement, Greenergy and HC will form a joint venture company, with the former owning 60% and the latter with a 40% stake.

“The new company which will be under a 60-40 equity arrangement (60% for the company and 40% for HC) shall have an authorized capital stock of about €4 million, subject to conversion to Philippine Peso,” Greenergy said in its disclosure.

The company added that the project is still subject to the conduct of a financial and technical feasibility study and due diligence, as well as the execution of definitive agreements.

“The parties’ desired schedule -- subject to revision or earlier realization -- sets the signing of the joint-venture agreement within 121 days from the signing of the term sheet (preliminary agreement),” Greenergy said.

For the first half, Greenergy reported a net loss of P6.88 million, 48.6% more than the P4.63-million loss recorded in the same six months last year, citing its shift from semiconductor manufacturing to new businesses like renewable energy and waste recycling.

The firm noted that operating expenses in the first semester totaled P6.88 million, a 44.96% decrease from P12.5 million in the same six months in 2011.

Greenergy shares were unmoved at P0.016 apiece yesterday from their close on Friday last week. -- D. O. Rivera    source