Robin Rigg OFTO Project Reaches Financial Close (2186C)
March 02 2011 - 10:56AM
UK Regulatory
TIDMINPP
RNS Number : 2186C
International Public Partnership Ld
02 March 2011
2 March 2011
INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED
Robin Rigg Offshore Transmission Project Reaches Financial
Close
-Transmission Capital Partners Shortlisted for Three Additional
Ofgem Schemes -
International Public Partnerships Limited (INPP), the listed
infrastructure investment company, is pleased to announce that
Transmission Capital Partners, the consortium comprising Amber
Infrastructure, Transmission Capital and INPP has achieved
financial close for the Robin Rigg offshore transmission project.
This is the first offshore transmission project to reach financial
close under Ofgem's first round of tenders for the long-term
licence and operation of offshore transmission assets in the United
Kingdom.
The project relates to the transmission cable connection to the
offshore wind farm at Robin Rigg, located 12km off the coast of
Cumbria. The asset comprises the onshore substation and under-sea
cables connecting the mainland electricity grid network to the
offshore wind-farm, which has a generation capacity of
approximately 180MW. The project has been operational since early
2010.
Key features of the project include:
-- 20 year concession term
-- Revenues linked to the availability of the asset, with
potential deductions capped at 10% in any year, and fully linked to
UK RPI
-- No demand based risk with no exposure (either revenue or
penalties) to wind farm performance or credit
-- Revenues guaranteed by National Grid Electricity Transmission
plc (NGET), a subsidiary of National Grid, in their statutory
ring-fenced role as national electricity systems operator (NGET
rated 'A-' S&P; 'A' Fitch).
-- Robust financial structure in place with conservative gearing
(84%) and debt in place for the life of the concession ensuring no
refinancing risk
-- No construction risk with immediate yield for INPP investors
given the operational status of the project.
The consortium bid a revenue stream of GBP6.5million per annum
(indexed to RPI) to successfully acquire the project. INPP is
investing 100% of the equity and subordinated debt totalling
GBP12.4million. Senior debt has been provided by Barclays, BNP
Paribas and Lloyds.
The consortium is scheduled to reach financial close on three
further offshore transmission projects by mid-2011 and remains
shortlisted for a fifth project which is expected to be awarded
this month under Ofgem's first round of tenders.
The announcement follows shortly after the consortium was
shortlisted for three projects under Ofgem's second round of
tenders which are due to be awarded later in the year. New
opportunities with a total development value of up to GBP14bn are
expected over the next nine years.
Giles Frost, Director of Amber, said: "We are delighted to have
reached financial close for the very first offshore transmission
project under Ofgem's inaugural round of tenders. We expect
renewable energy projects such as these will be a key focus of the
Government going forward and these projects will be the foundation
of a long-term commitment by Amber and INPP to the offshore
transmission and renewable energy sectors."
A copy of the Ofgem press release can be found at
www.ofgem.gov.uk
For further information:
Bianca Francis +44 (0)20 7939 0558 Amber Fund Management
Limited
Hugh Jonathan/Nick Westlake +44 (0)20 7260 1263/1345 Numis
Securities
Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297 Financial
Dynamics
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 54 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters and transport projects in the U.K.,
Europe, Australia and Canada. INPP seeks to provide its
shareholders with both a long-term government-backed yield and
capital growth through investment across both construction and
operational phases of 25-40 year concessions.
Amber Infrastructure Group (Amber) is the Investment Advisor to
INPP and consists of more than 50 dedicated infrastructure
specialists which originate and source a strong pipeline of
projects for INPP.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
About Transmission Capital:
Transmission Capital was established in 2008 to procure,
construct, own and operate transmission assets, initially those in
the UK being tendered through the new offshore transmission
regulatory regime being overseen by Ofgem. It also provides
transmission development advisory services to electricity industry
stakeholders, including many offshore wind developers. The senior
management team has over 70 years experience in the UK electricity
supply industry, the majority of which has been focussed on the
development, procurement and construction of major offshore
transmission and wind projects.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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