Toronto-based Northland Power Income Fund and Northland Power Inc. (the Fund) have announced that financing for the C$268 million Jardin d'Eole wind farm has been arranged. The Fund has committed to provide a C$35 million loan to Saint-Ulric Saint-Leandre Wind L.P./Eoliennes Saint-Ulric Saint-Leandre S.E.C. (SUSL), the developer and owner of the Jardin d'Eole project. SUSL is owned by the Fund.
The Fund's C$35 million loan will be subordinated to the senior secured project debt, with recourse limited to the assets of SUSL. The senior secured debt financing of $153 million is being provided by a consortium of insurance companies, including the Manufacturers Life Insurance Co., Sun Life Assurance Co. of Canada and the Great-West Life Assurance Co. The Fund is the project sponsor and has provided the required equity.
The Jardin d'Eole project will be located on leased land, primarily agricultural, on the south shore of the St. Lawrence River close to the municipalities of Saint-Ulric and Saint-Leandre. SUSL signed a contract with Hydro-Quebec in February 2005 for the supply of up to 150 MW of electricity from the Jardin d'Eole wind farm. The contract expires 20 years after commencement of commercial operations.
SUSL also expects to receive payments under Canada's EcoEnergy program. SUSL has a contract with GE Wind Inc. and GE Canada for the delivery of 85 GE 1.5sle wind turbines, equivalent to 127.5 MW. The Jardin d'Eole wind farm may be expanded at a later date to the full 150 MW.
Construction will begin this summer by Borea, a joint venture of Pomerleau Inc. and D. H. Blattner and Sons, with completion scheduled for December 2009. The wind farm will be operated and maintained on behalf of SUSL by a subsidiary of the Fund.
SOURCE: Northland Power Income Fund Management Inc.