VANCOUVER, July 15, 2011 /CNW/ - The Homalco First Nation and Alterra Power Corporation (TSX: AXY) are pleased to announce that they will be signing an Impact Benefit Agreement (IBA) that establishes a framework under which the Homalco First Nation and Alterra have agreed to work together to advance possible hydroelectric opportunities within the traditional territory of the Homalco First Nation.

The Homalco First Nation and Alterra have agreed in the IBA to the terms by which the permitting and ultimate build out of hydroelectric facilities can proceed within the traditional territory. The agreement also covers the transmission infrastructure that would be required to bring the hydro facilities into commercial operations within the traditional territory of the Homalco Nation. The specific terms of the IBA remain confidential, however the agreement includes revenue sharing provisions; employment, training and contracting opportunities; environmental considerations and the protection of cultural and heritage resources.

Homalco Chief Richard Harry said "This agreement between the Homalco First Nation and Alterra Power represents a significant milestone for the Homalco First Nation. Quality green energy developments, on our traditional lands, achieved with a partner that is respectful of our land, our culture and our people. This represents a real economic opportunity for a better tomorrow for all."

Donald McInnes, Executive Vice Chairman of Alterra Power, said "We are very grateful to the Homalco First Nation for their support of hydroelectric projects in their traditional territory. We look forward to working together on developing environmentally-responsible projects that will benefit the Homalco First Nation and all British Columbians".

About Alterra Power Corp.

Alterra Power is a global renewable power producer and developer. Alterra operates six geothermal, run of river hydro and wind plants in Iceland, Nevada and British Columbia with combined capacity of 571 MW. The company has an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators and strong financial capacity to support its aggressive growth plans. Alterra's five-year plan is to increase its renewable generation base to more than 1,000 MW.