Reservoir Signs LOI With Torno To Develop Hydro Projects In Serbia

Published: 18-Mar-2010

Reservoir Capital (Reservoir) has signed a letter of intent (LOI) with Milan-based Torno Global Contracting to support the development of its Brodarevo 1 and 2 hydropower projects in Serbia and to jointly develop other energy and infrastructure business in the region.

Reservoir is nearing completion of pre-feasibility studies on the projects, defining technical feasibility, conceptual design and scope of work. Under the terms of the agreement, Torno will acquire a 20% equity interest in the projects and act as general contractor for the development.

In return, Torno will provide financial and technical support to Reservoir for completion of feasibility work, completion of a PPA to sell the power into the market, completion of permitting for construction, and project financing and execution.

Torno and Reservoir also plan to work together on Reservoir's nearby Vrutci hydropower project and to jointly target the acquisition and development of several primarily hydroelectric projects in the region by 2015.

Reservoir is engaged in development of a 55MW hydroelectric project at Brodarevo in southwest Serbia. The company has applied for a 32MW license at Vrutci, holds four geothermal exploration licenses and is studying various other hydroelectric and geothermal opportunities in the region.

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