Toronto's Clean Power Income Fund and Western Wind Energy Corp have formed a joint venture to develop and operate 20 MW of wind power in Grand Manan, New Brunswick. Clean Power will invest C$7 million to acquire a 50% stake in the C$31.2 million project, which is expected to be complete by the end of 2005 and produce revenues of C$90 million over the 20 year term of a power purchase agreement with New Brunswick Power. As part of its mandate under the agreement, Clean Power will negotiate a C$22.5 million, 20 year senior debt facility that will be used to fund the construction and operation of the plant. "This agreement offers us opportunities not only to increase and diversify our investment in Canada's renewable energy sector, but also to add substantially to our existing participation in wind power over the coming years," says Clean Power's Stephen Probyn. The Clean Power Income Fund holds 347 MW of renewable energy generation across North America, including 71.2 MW of wind power in three US projects. It recently signed a contract with the Ontario government for the construction of the 99 MW Erie Shores Wind Farm, a partnership with AIM PowerGen Corporation. The Grand Manan project was selected from five bidders in a request for proposals issued by the utility in December 2003.
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