MINE LATEST NEWS Minerco Resources, Inc. Submits Water Contract to Honduran Government for Its Chiligatoro Hydro-Electric Project
http://finance.yahoo.com/news/Minerco-Resources-Inc-Submits-iw-2194389143.html?x=0&.v=1
http://finance.yahoo.com/news/Minerco-Resources-Inc-Submits-iw-2194389143.html?x=0&.v=1
HOUSTON, TX -- a progressive developer, producer and provider of clean, renewable energy solutions in Latin America, announced today the company has submitted the Water Contract to Secretaria de Recursos Naturales y Ambiente ("SERNA"), Honduras's Natural Resources and Environmental Ministry, for its Chiligatoro Hydro-Electric Project.
The submittal of the Chiligatoro Project's Water Contract is an important and necessary step in the process for Congressional approval. The Water Contract assigns and verifies the volume of water used by the hydro-electric project design. The Water Contract ensures the water used by the hydro-electric project does not negatively impact the surrounding communities. As previously released, the Environmental Impact Study for the Chiligatoro Project has also been submitted to SERNA for approval.
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Minerco Resources, Inc. Receives Honduran National Commission of Energy ("NCE") Conformation of the Long-Term Rate Structure for the Company's 30 Year Operations Contract for the Chiligatoro Hydro-Electric Project
HOUSTON, TX -- Minerco Resources, Inc. a progressive developer, producer and provider of clean, renewable energy solutions in Latin America, announced today the company has received official verification and confirmation of the long-term rate structure from the Honduran National Commission of Energy ("NCE") for the company's Chiligatoro Hydro-Electric Project's 30 Year Operations Contract.
The Honduran NCE verified and confirmed the long-term rate structure for the 30 Year Operations Contract for the Chiligatoro Project which is identified as Document Number 2006-E37. The NCE previously approved all the terms of the Operations Contract with the exception of the energy sales rate structure, which it has now done.
The sales rate is published annually by Secretaria de Recursos Naturales y Ambiente ("SERNA"), Honduras's Natural Resources and Environmental Ministry. The average rate, based on Short-Term Marginal Cost, for year 2010 is US$97.96 per mega-watt hour (MW-h) as published by SERNA in La Gaceta on January 15, 2010, Section A: Agreements and Laws No.32, 114, page 8.
As previously released, the Operations Contract defines an initial capacity of 5.2 MW-h for a term of 30 years. Consideration for increased capacity can be obtained based on final plant design. Minerco expects to receive increased capacity approval after submission of the Final Design. The Contract also grants a "First Right of Refusal" for renewal and allowances for all generation, sales and transmission of energy from the Chiligatoro Project. Additionally, the "Transmission Clause" provides Minerco with the ability to charge transmission fees from other operators through the Minerco owned transmission lines.
For electricity generation projects utilizing renewable energy, Honduran Law has provided a 10% price incentive over the short-term marginal cost for a period of 15 years and a tax exemption for a period of 10 years. Therefore, the Operations Contract contains a sales rate of US$107.76 per MW-h (with incentive) for the first 15 years, or US$73.6 million. The following 15 years will utilize a rate of US$97.96 per MW-h, or US$66.9 million. Based on the quoted Short-Term Marginal Costs and legislative incentives, the 30 Year Chiligatoro Operations Contract is valued at US$140.5 million.
The submittal of the Chiligatoro Project's Water Contract is an important and necessary step in the process for Congressional approval. The Water Contract assigns and verifies the volume of water used by the hydro-electric project design. The Water Contract ensures the water used by the hydro-electric project does not negatively impact the surrounding communities. As previously released, the Environmental Impact Study for the Chiligatoro Project has also been submitted to SERNA for approval.
**************************
Minerco Resources, Inc. Receives Honduran National Commission of Energy ("NCE") Conformation of the Long-Term Rate Structure for the Company's 30 Year Operations Contract for the Chiligatoro Hydro-Electric Project
HOUSTON, TX -- Minerco Resources, Inc. a progressive developer, producer and provider of clean, renewable energy solutions in Latin America, announced today the company has received official verification and confirmation of the long-term rate structure from the Honduran National Commission of Energy ("NCE") for the company's Chiligatoro Hydro-Electric Project's 30 Year Operations Contract.
The Honduran NCE verified and confirmed the long-term rate structure for the 30 Year Operations Contract for the Chiligatoro Project which is identified as Document Number 2006-E37. The NCE previously approved all the terms of the Operations Contract with the exception of the energy sales rate structure, which it has now done.
The sales rate is published annually by Secretaria de Recursos Naturales y Ambiente ("SERNA"), Honduras's Natural Resources and Environmental Ministry. The average rate, based on Short-Term Marginal Cost, for year 2010 is US$97.96 per mega-watt hour (MW-h) as published by SERNA in La Gaceta on January 15, 2010, Section A: Agreements and Laws No.32, 114, page 8.
As previously released, the Operations Contract defines an initial capacity of 5.2 MW-h for a term of 30 years. Consideration for increased capacity can be obtained based on final plant design. Minerco expects to receive increased capacity approval after submission of the Final Design. The Contract also grants a "First Right of Refusal" for renewal and allowances for all generation, sales and transmission of energy from the Chiligatoro Project. Additionally, the "Transmission Clause" provides Minerco with the ability to charge transmission fees from other operators through the Minerco owned transmission lines.
For electricity generation projects utilizing renewable energy, Honduran Law has provided a 10% price incentive over the short-term marginal cost for a period of 15 years and a tax exemption for a period of 10 years. Therefore, the Operations Contract contains a sales rate of US$107.76 per MW-h (with incentive) for the first 15 years, or US$73.6 million. The following 15 years will utilize a rate of US$97.96 per MW-h, or US$66.9 million. Based on the quoted Short-Term Marginal Costs and legislative incentives, the 30 Year Chiligatoro Operations Contract is valued at US$140.5 million.
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