Canadian-based independent power producer Innergex reports it has closed a C$61.7 million non-recourse construction and term project financing for the Viger-Denonville wind energy project located in Quebec.
The 24.6 MW wind farm is a 50/50 joint venture between Innergex and the Riviere-du-Loup Regional County municipality and is located entirely on private lands in the Quebec municipalities of Saint-Paul-de-la-Croix and Saint-Epiphane. Construction began in the spring, and commercial operation is expected to begin in the fourth quarter.
According to Innergex, the construction loan will carry a fixed interest rate of 6.0% (through the use of swaps) starting on Dec. 31. Following the start of the project's commercial operation, the rate will convert into an 18-year term loan. Additionally, the company says a short-term loan of C$5.5 million carrying a floating interest rate will finance the construction of the substation and collector system, for which it is entitled to be reimbursed by Hydro-Quebec in 2014.
All of the electricity it will produce will be covered by a 20-year fixed-price power purchase agreement with Hydro-Quebec, which was obtained under that province's 2009 request for proposals and which provides for an annual adjustment to the selling price based on a portion of the Consumer Price Index.