Raising finances for 201 MW Quebec project

Toronto-based SkyPower Corp is hoping to raise between C$75 and C$100 million for the construction of the first phase of a 201 MW Quebec wind power project through an initial public offering of C$10 units in its SkyPower Wind Energy Fund LP. The proceeds will be invested in flow-through shares of Terrawinds Resources, a company created by SkyPower to construct, own and operate the facility. Terrawinds will use the money to finance the installation of 26 GE Energy 1.5 MW wind turbines in April. The 39 MW test phase, which receives special treatment under Canadian tax law, is expected to cost C$83.3 million. Following completion of a 120-day test period, the company will use construction debt financing to install the project's remaining 108 turbines. Construction of the so-called infill phase is expected to begin in March 2007. The output of the project, located on the south shore of the St. Lawrence River near Rivière-du-Loup, will be sold to Hydro-Quebec under a 21-year power purchase agreement signed late last year.