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Shares in Rurelec (LON:RUR) spiked 9% after it passed a significant milestone.
The South America-focussed power firm today revealed that its hydro-power associate has received its commercial operations certificate for a 5.3 megawatt hydroelectric plant in Peru.
Rurelec has a 93% indirect interest in the Empresa de Generacion Electrica Canchayllo subsidiary, which formally entered service under its power purchase agreement on 31 December 2014.
The company last week told investors it was working to finalise a partial sale of its interests in South America.
Partnering negotiations are expected to result in the sale of a share in one of Rurelec’s regional holding companies or project companies in Chile and Peru.
Outline terms have been agreed and binding agreements are anticipated in early 2015.
Rurelec, which earlier this year closed the book on a long running legal dispute with the Bolivian government, in September told investors that was exploring one or more major alliances that could accelerate the company’s growth without the need for additional investment from shareholders.
Canchayllo will be Rurelec’s first new project to go online since the nationalisation of its Bolivian operation back in 2010, and it is also Rurelec’s first foray into hydro power.
The company is also working to develop power projects in Chile, where it is pursuing Parinacota project, in the Arica province of northern part of the country.
Elsewhere, in Argentina, Rurelec says the Energia del Sur power plant had, at last measure, continued to trade at record levels.
“We believe that the opportunities offered to us and our current projects reflect our credibility in South America following many years of successful power development there,” chief executive Peter Earl said recently.