Hydro Tasmania has signed an in-principle agreement with the potential partners in a joint venture aimed at creating growth opportunities for its 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 (both subsidiaries of PowerChina), 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.

Entura is already one of the world’s most experienced specialist power and water consulting firms with clients, and a strong reputation, in both the Australian and global markets. It offers services that are highly valued by clients.

“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,” said Mr 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.

Ends.

About Entura

Entura is one of the world’s most experienced specialist power and water consulting firms. As part of Hydro Tasmania, Australia’s largest renewable energy producer and water manager, we are backed by more than 100 years of creating energy and maintaining power and water assets.

Contributing to the development, operation and maintenance of water and renewable power schemes over their entire lifecycle has given us first-hand insights and a deep understanding of the real-life pressures of owning and operating assets, as has our experience in working closely with other asset owners to manage theirs.

Our strength comes from an ability to partner with clients to deliver practical and commercially sound solutions across the whole lifecycle of power and water assets, helping them to manage risks and achieve valuable outcomes.

From strategy, planning, design and construction through to operation, maintenance, risk management and training, our full range of consulting services covers every aspect of major power and water projects.

We support governments, funding agencies and corporate clients across the Asia-Pacific region and Africa from offices in Australia, India and South Africa.

For more information visit entura.com.au

About the potential joint venture partners

HydroChina and PowerChina Huadong are part of the PowerChina Group (http://en.powerchina.cn/).

HydroChina is a subsidiary of PowerChina. HydroChina provides comprehensive technical services with respect to hydropower and water conservation, and renewable energy development. It engages in site planning, investigation and design, construction and supervision and EPC general contracting. It also has a mandate for investment in hydropower and broader renewable energy projects internationally. In 2014, HydroChina was ranked No. 12 in the top 150 Global Design Firms by annual revenue.

PowerChina Huadong, also a subsidiary of PowerChina is based in Hangzhou. PowerChina Huadong is a large player in the water and power sector in China and internationally. Traditionally a consulting business within China it has expanded to deliver engineering, procurement and construction (EPC) services and invest directly in projects, in addition to expanding its markets internationally.

Key facts and figures on PowerChina Huadong:

·      Largest engineering design business in the PowerChina Group.

·      Approximately 4000 employees

·      Total assets $US1.3 billion, total revenue $US0.9 billion, EBITDA $US97 million (2014)

·      Key markets: Domestic (China); International (South East Asia, South Asia, East Africa, West Africa, Middle East, Latin America)

·      Three key segments: Hydropower and Renewables; Urban and Infrastructure; Dam Safety

·      Three key products: Design / consultancy; EPC; Investment