positives of the latest announcement

Second try - first paste did not come out unbroken from WORD doc.

** Denotes my commentary.
-L


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.


** The initial deposit came on time and the second deposit remains on schedule!
To most speculators, Tincom keeping with their promise and remaining on schedule with this deposit was a very important test.
Design for tender is also still on schedule, which precedes construction as the final stage of diligence. The details in this announcement herald a sense of finality for all, given that all Financial Feasibility Studies have been viewed in a satisfactory light and construction will follow the design schedule the first Pad pour is the paramount focus now.
Basically, it's full speed ahead, as far as the question begs will it or won't it happen?
It is happening right now.


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.


** As I said above, this statement proves that
Tincoms mentality holds a sense of finality where they admit that the background work is done and now the architectural elements will be completed by all 3 parties (with full guidance coming from ARUP post May 30).
The structure of VCPL personnel has been designed in order for construction to stay on schedule post May 30 and its structure will keep schedules in tow with preceding diligence.
The view is clearly to not disappoint the VN Govt, ESI, VCPL and Tincom and Shareholders alike, now that we are at the pointy end of the Legal Diligence process. Tincom want to know that they have not inherited extra financial burdens, nor that there have been any changes made after having already comitted to all costs in writing - they are basically the mother company now.


ECT expects that VCPL will receive the additional deposit of A$1 million from TinCom by 30 May.

** All is on track, as expected in this regard - simple, no bars about it. This presents a very stable scenario for anyone pondering buying ESI now, whilst ever it sits under 5.2cents which many know is the value that Tincom have placed on their ESI shares and this project in its infancy.



In addition, VCPL's Managing Director, Linh Vu Dac, has advised Arup that VCPL have employed a project engineer to commence 15 May 2011.

** VCPL has its first employee at hand, indicating that the company is no longer a shell as such, but that it has a tangible aspect to it, at the expense of Tincom as stated in previous announcements. This is a very important step as it takes the company out of the realms of intention and into reality. This is VCPLs first employee as such. I greet that appointment as if it didn't come, we would all be in trouble!
The appointment date for this man is 15 May, the deposit date is 30May and that two wk period indicates to me that that it is not enough to introduce any spanners in the works or to make any major changes.
It simply tells me that he will have just enough time to tick final legal boxes and to communicate to Tincom and ESI exactly where everything is at - including translations and the communication of where the project is within board meetings in Vietnam.
Not everything is happening in Aust. when we do something here, it takes time to get back to VN and then the nod takes time to get back to Australia again hence the 2 wk window. Legals are still in play for all until then.
Thus far we have had our point of view, Tincom has had theirs and now VCPL will get theirs good above-board demonstration of diligence, again, underlining how serious this thing is.

The project engineers 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.

** Tincom have other things to do, they are ready to hand all diligence over to the Joint Venture now.
This frees both Tincom and ESI up post May 30, allowing them each to get on with their other projects, as ARUP will be on the case in depth. Why wouldn't VCPL need their own engineer?
How could VCPL function legitimately without one?

**IMO, the latest announcement and this extension for diligence cements a lot of things, all of which define how seriously this thing is moving along.
The market is obviously interested in parking their cash in other codes for the meantime, as ESI will be a sure thing to come back to. I expect a bit of a slump in the ASX and if that is the case, ESI will become a safe haven as we have seen happen from time to time, which a few divisive commentators have called a pump and dump IMO it has no sinister connotations about the integrity of the project, just a result of good trading by a few people who own a combined sum of approx 15million shares.
The Share Price has only slumped on relatively small volume and todays price is not indicative of the broader market, but a few who have something better to do for the next 3 or so wks - ample time for some to buy back in after making some pocket money on the side.

Cheers

L

PS: Remember that Tincom valued this company ESI at 5.2 cents a year ago - they go tin 12mths early. Getting in 6wks early now is not a studpid thing. We saw that the market inflated the value of ESI shares day by day as we got closer to the 30th April (initial deposit date) and this will happen again as we near the 30 May.