The JV partners have just signed a Memorandum of Understanding (MoU) to develop a 25MW plant in the province of Veraguas, and hope construction can commence before the end of 2010.
To develop the scheme to a bankable feasibility study stage, the JV will also update a 1998 Environmental Impact Study which was previously approved by national authorities.
Following the initial development work on the first project the partners plan to investigate developing up to another 75MW of capacity in further projects in the central province of the country, taking their JV's total portfolio to about 100MW.
PCE is held within Petaquilla Minerals via another subsidiary, Petaquilla Infrastructure, which it is preparing to spin-out of the group within the coming months.
Last month, the national Public Services Authority said that 31 hydro plants with combined installed capacity of 1047MW will be operational in Panama by 2013.
