Transfield Services Limited has announced it has achieved financial close for the construction, ownership and operation of a peak-load power station in Western Australia.
This achievement is the culmination of a tender process in which Transfield Services successfully competed against a number of domestic and international power industry participants. Electricity output of 260MW from the station will be sold to Western Power Corporation as part of a 25-year power purchase contract.
Under the contract, the power station is not exposed to any electricity market risk.
To be located at Kemerton, the station will be built by Siemens under a fixed price turn-key contract at an estimated cost of $250 million.
Funding will be provided by non-recourse project finance with ABN AMRO acting as advisor.
Project banks include ABN AMRO, Credit Agricole Indosuez, Commonwealth Bank and Royal Bank of Scotland.
Transfield Services Managing Director, Peter Watson, says the planned power station is a peaking power station, similar to one Transfield owns, operates and maintains in Townsville.
Watson says the latest opportunity will enable Transfield to expand its ownership of power generating assets, and secure a 25 –year operations and maintenance contract valued at more than $110 million.
Construction work is expected to start early next year.
The completion and operation date is October, 2005, in time for the summer peak demand period in Western Australia. Watson says the project continues a commitment to the State of Western Australia, where Transfield already has relationships with a number of public and private sector organisations.
“We look forward to a successful long-term relationship with Western Power.”
