The agreement is between Hidroelectrica La Higuera S.A. (HLH), the joint venture company owned by Pacific Hydro and Statkraft Norfund Power Invest AS (SN Power) that was formed to own and operate La Higuera project, and Sociedad Generadora Austral S.A. (SGA).
SGA is a subsidiary of Sociedad Austral de Electricidad S.A. (SAESA), a member of the SAESA Group, a major Chilean power company that operates several distribution companies in the south of Chile.
Sales are expected to commence in January 2008 and will continue for 12 years with HLH supplying SGA with approximately 55 MW and 480 GWh per year of electricity. The energy will be delivered at Alto Jahuel Substation, located close to Santiago.
Pacific Hydro executive director and HLH general manager Philip van der Riet said that the signing of the agreement represented a major step forward towards realization of La Higuera Hydro Power Project, which the company has been developing for more than 2 years.
