GL Garrad Hassan has provided technical due diligence to Terra-Gen Power LLC's Alta Wind Energy Center (AWEC) in the Tehachapi region of Kern County, Calif. The company also plans to provide inspection and monitoring services throughout project construction, and technical support to underpin the leveraged lease – to be provided by Citibank NA – when commercial operations commence.
The independent technical due-diligence review conducted by GL Garrad Hassan included an assessment of the energy production at the site, a review of the site suitability, and a technical assessment of the plant, the equipment and all of the material procurement, construction and operation contracts.
In addition, staff analyzed project costs and carried out a full financial model review. GL Garrad Hassan's final independent engineering and wind resource assessment reports served as a foundation to inform the 10 financial institutions involved in the project financing.
AWEC is a 3,000 MW wind power development initiative. Construction commenced on the initial 150 MW Alta I project in March. Construction of the Alta II-V projects, which consist of 570 MW, reviewed by GL Garrad Hassan started in July, following financial closing.
Commercial operation of the four phases is scheduled to occur in the first half of 2011. The term financing of Alta II-V is supported by a 144a bond issuance and is structured as a leveraged lease whereby Citibank will become the lessor to Terra-Gen at the start of commercial operations. Terra-Gen will manage and operate the wind projects under long-term agreements.
SOURCE: GL Garrad Hassan