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- Release Date: 02/07/12 16:59
- Summary: GENERAL: TPW: Media Release Snowtown Stage 2
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TPW
02/07/2012 14:59
GENERAL
REL: 1459 HRS TrustPower Limited
GENERAL: TPW: Media Release Snowtown Stage 2
Media Release 2 July 2012
Snowtown Stage 2
As previously advised, TrustPower is progressing the development of Snowtown
Stage 2, being a 270MW extension of TrustPower's existing Snowtown windfarm
in South Australia. The intention is that Snowtown Stage 2 will consist of
two separately metered wind farms, Snowtown North (144MW) and Snowtown South
(126MW), sharing a single transmission line owned by TrustPower.
TrustPower has conditional contracts in place with Siemens for the turbine
supply and Origin Energy for the long term sale of electricity and renewable
energy credits. All other contractual arrangements and approvals necessary
to achieve financial close have been completed or are expected to be
completed by 31 July 2012. TrustPower believes that Snowtown Stage 2 will be
a low cost investment and project economics are very attractive based on the
conditional contracts secured but to ensure that the turbine price offered
under the Engineer Procure and Construct Contract is maintained, it is
necessary for financial close to occur by 31 July 2012. The total expected
cost for the project excluding capitalised interest is expected to be no
greater than A$465 million.
As has been advised, TrustPower has been running a targeted selection process
to identify a co-investor to acquire Snowtown South prior to construction
commencing. While there has been significant interest shown by potential
investors given the necessity to commit to the project by 31 July 2012,
TrustPower has determined to proceed to financial close by 31 July 2012 and
delay introducing a co-investor into the project until after financial close
has been achieved.
TrustPower remains committed to introducing a co-investor following financial
close and is comfortable to hold the entire Stage 2 development through the
construction phase.
TrustPower has received committed offers of financing that are on terms
capable of acceptance from its relationship banks to construct the whole of
Snowtown Stage 2. While the additional gearing required to complete
construction will move forecast Group gearing towards the higher end of the
Group's target gearing range by 2014, it is expected that the Group will
operate comfortably within bank financial covenants through this period.
Group gearing will be reduced by the eventual sale of Snowtown South.
Further information on the details of Snowtown Stage 2 will be provided once
financial close has been completed and all key approvals have been obtained.
Vince Hawksworth
Chief Executive
07 574 4866
End CA:00224537 For:TPW Type:GENERAL Time:2012-07-02 14:59:55
