With approximate capital costs of $4 billion, the joint investment will reportedly be the largest single private sector investment in hydroelectric generation in Canada.
Plutonic Power and GE Energy Financial Services (EFS) intend to jointly bid for the Upper Toba Valley and Bute Inlet projects into the 2008 BC Hydro Clean Power Call request for proposals in November 2008.
Based on current assumptions, if the two entities’ joint bid is accepted, GE-EFS intends to make an equity contribution of $70 million for a 50% interest in the Upper Toba Valley Project and either by itself, or with other partners, an equity contribution of $650 million for a 60% interest in the Bute Inlet Project.
The final economic terms will be determined based on project variables including final capital cost, awarded energy price and estimates of power output. GE-EFS will also have the right to arrange debt financing for the projects.
Prior to GE-EFS’s equity contribution, Plutonic Power would be responsible for all costs of permitting, public consultation and environmental assessment certification. Plutonic may elect to repurchase a further 10% interest in the Bute Project by making a $100 million equity contribution to capital costs.
