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 with Reservoir, Torno will acquire a 20% equity interest in the projects and act as general contractor for the development, in return for which it will provide financial and technical support to Reservoir for the following:
• 1. Completion of feasibility work to define the best construction price.
• 2. Completion of a Power Purchase Agreement to sell the power into the market.
• 3. Completion of permitting for construction.
• 4. Project financing and execution.
Reservoir and Torno also plan to work together on the nearby Vrutci hydro power project and to jointly target the acquisition and development of several hundred megawatts of primarily hydroelectric projects in the region by 2015.
