TinCom deposits initial funds to joint venture
Environmental Clean Technologies Limited (ASX:ESI) is pleased to announce the deposit today of funds by Thang Long Joint Investment Stock Company (TinCom) to provide initial cash funding for the Joint Venture company Victoria Coldry Pty Ltd (VCPL).
This milestone was foreshadowed in the announcement of 4 April 2011 titled “Joint Venture Agreement & Parent Company Guarantee for Victoria Coldry Project Signed in Hanoi”.
In that announcement, one of the conditions precedent was the deposit of A$500,000 by 30 April followed by a further deposit of A$1 million by 30 May 2011.
ECT Chief Executive, Kos Galtos welcomed this important step highlighting the importance of the initial capitalisation of VCPL to enable commencement of external engineering work.
“This is another important step in the project with our aim to have the ‘design for tender’ completed by November” Mr Galtos said.
TinCom Chairman Mr. Thang Van Luong previously voiced his position stating “We are pleased to take this important step in the Victoria Coldry project with ECT as it represents a venture of national significance to Vietnam by helping balance energy security and environmental responsibility. The significant preparatory work we have completed since securing the Coldry technology license last June has allowed us to progress with our project.”
ECT expects that VCPL will receive the additional deposit of A$1 million from TinCom by 30 May. In addition, VCPL’s Managing Director, Linh Vu Dac, has advised Arup that VCPL have employed a project engineer to commence 15 May 2011. The project engineer’s first action will be to undertake a final review of the scope of works proposed by Arup, with the intention to enter into the formal agreement with Arup, by 30 May 2011. While the intention was to sign the contract with Arup by 30 April, VCPL have decided to increase its own engineering capability to ensure it maximizes the output from Arup’s services and achieves maximum project benefits.
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