Maple Energy, through one of its subsidiaries, has executed an agreement with Netafim Peru, S.A.C. (Netafim), for the engineering, procurement and construction of a drip irrigation system relating to the Company’s Ethanol Project. Netafim is the Peruvian subsidiary of Netafim Ltd, a global leader in the provision of drip irrigation systems and other water solutions for agriculture.

Under the terms of the agreement, Maple will pay Netafim approximately US$ 22 million for the engineering, procurement and construction of a drip irrigation system, which includes pumps, filters, and piping. The system will transport irrigation water from the project’s main water delivery system to the sugar cane in the field, and includes some of the latest designs in drip irrigation technology. Furthermore, this system should allow Maple to minimise the amount of water necessary to irrigate its planned 8,000 hectare sugar cane estate. The Company has a 90 day notification period in which it can instruct Netafim to begin work under the agreement.

Rex Canon, CEO of Maple Energy, said, "We continue to make excellent progress with our Ethanol Project and are delighted with this latest development. We anticipate that the work under the agreement will commence within the next 90 days and will be substantially completed during 2010. This further step forward is in line with our expectations, and we remain confident that the commercial operation of the Ethanol Project, and the production of fuel-grade ethanol, will commence by October 2010.”

Tags: Maple Energy plc