Hydro Tasmania has signed an in-principle agreement with two subsidiaries of PowerChina regarding a joint venture aimed at creating growth opportunities for specialist power and water consulting business Entura.
The Heads of Agreement was signed in Beijing on Friday evening, as part of the Tasmanian Government’s trade mission to China.
Hydro Tasmania and its co-signatories, PowerChina Huadong and HydroChina, will now undertake further assessment and due diligence with the intent of reaching a formal agreement later in the year.
"The Heads of Agreement is a non-binding, in-principle agreement that reflects the desire of the three parties to reach a formal agreement in due course on a joint venture to take Entura forward," said Hydro Tasmania CEO, Steve Davy. "The parties’ vision for the joint venture is to be a leading specialist power and water consultant, delivering services across the project lifecycle to customers across Australia and the Pacific, South and South-east Asia and Africa."
The agreement describes the objectives and proposed nature of the joint venture, and some of the steps that will need to occur to finalise the proposed joint venture.
"The potential joint venture would accelerate Entura’s growth by providing access to project workload for the joint venture partners, and access to expanded markets through the broader international presence of the HydroChina/PowerChina group," added Davy. "This would create a more sustainable business model for Entura and opportunities for our people to work on a broader range of projects and enhance the depth of their technical skill."
A final decision to establish the joint venture will require approval by the Hydro Tasmania Board and the Tasmanian Government, and PowerChina Huadong and HydroChina will require approvals in China and Australia.
