National Power has finalized funding arrangements for the Redbank power station project in New South Wales, Reuters reports. It has also announced the names of three equity partners in the coal fired project.
The project partners are AIDC Ltd., ABB and the US utility LG&E Power. LG&E will also act as the plant operator. No details were provided about the share each of the four partners will take in the power plant.
Debt financing for the project is being led by the Australian arm of Dresdner Bank. It will involve $210 million of construction debt and another $158 million long term debt facility.
The 128 MW power plant will be built in the Hunter Valley, in the heart of New South Wales coal country. The power station will have a single boiler burning primarily coal waste.
A $153 million contract for design and construction of the plant was awarded to ABB last November. UK-based National Power has already negotiated a 30 year power purchase agreement with energyAustralia, owned by the New South Wales government.
This contract was challenged recently by energyAustralia on the grounds that National Power did not find a joint venture partner by a particular date; the challenge was rejected in the state Supreme Court. Observers have suggested that the contract could become a liability if the state decides to privatize energyAustralia.
