Hydro Tasmania has announced it is exploring the potential of a joint venture with PowerChina in a bid to expand the market access of its consulting engineering business Entura.
In a statement, Hydro Tasmania CEO Steve Davy said that discussions were at an early stage and were focussing on the strategic and cultural fit of the businesses, with no firm decisions being made yet by both parties.
"The potential joint venture would accelerate Entura's growth by providing access to a significant project work load for the JV partners, and access to new markets through the broader international presence of the HydroChina/PowerChina group," said Mr Davy. "This growth would also provide improved opportunities for Entura's people."
In November last year, Entura signed a Memorandum of Understanding (MOU) with PowerChina subsidiary HydroChina which focused on joint development of opportunities in the energy and water sectors, including hydropower. Earlier this month, the firms jointly won a bid to work on the Kidston Pumped Storage Hydropower Project in North Queensland, for Genex Power.
"The project was awarded based on the combined capability of the two businesses, and demonstrates how the two businesses can leverage their relationship for mutual benefit," said Hydro Tasmania CEO Steve Davy. "In particular, Entura brings its Australian experience to the project and will help identify opportunities for project optimisation, while HydroChina brings a wealth of experience in the development and construction of pumped storage projects."
Subject to Board approval to proceed to the next stage, Hydro Tasmania said it will now continue discussions, with a view to signing a high-level agreement in coming months about how the joint venture might be formed and operate.
Following further assessment, negotiations would continue, with the aim of reaching a formal agreement by the end of 2015.
