Canada

Canada

Northland Power agrees financing for 100MW Quebec project

CANADA: The Toronto-based Northland Power Income Fund has completed financing for its 100.5MW Mont-Louis wind project in Quebec with a C$106 million loan from two Canadian life insurance companies.

Construction financing, supplied by The Manufacturers Life Insurance Company and The Canada Life Assurance Company, will convert to a 20-year amortizing term loan after the start of commercial operations.

It is a milestone for Mont-Louis, which is expected to start commercial operations in the third quarter of 2011, nearly a year behind its original schedule.

The project ran into turbine supply issues that were complicated by Quebec’s local content requirements after GE pulled out of a deal in 2007. The project’s contract with Hydro-Quebec that requires that 60% of the costs must be incurred in Quebec's Gaspésie region.

The global financial crisis also complicated the search for capital. Northland CEO John Brace said a commitment earlier this year from Invesstissment Quebec, a provincial government investment agency, to provide the project with C$15 million of debt financing was "instrumental in allowing this project to proceed".

The financing also comes at a time when Canadian renewable energy developers are facing a debt financing shortfall as demand for capital outstrips the ability of traditional lenders to the sector, like insurance companies, to invest.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events


Latest Jobs