TIDMINPP
RNS Number : 0221P
International Public Partnership Ld
27 September 2011
27 September 2011
Barrow Offshore Transmission Project Reaches Financial Close
- Transmission Capital Partners Closes Third OFTOs Scheme -
International Public Partnerships Limited (INPP) is pleased to
announce that Transmission Capital Partners, the consortium
comprising INPP, Amber Infrastructure and Transmission Capital, has
achieved financial close on the Barrow offshore transmission
project.
This is the third offshore transmission project that
Transmission Capital Partners has closed under Ofgem's initial
round of nine tenders for the long-term licence and operation of
offshore transmission assets in the United Kingdom.
Barrow is an offshore wind farm, located in the east Irish Sea
approximately 7km south west from Walney Island off the Cumbria
coast, UK with a generation capacity of approximately 90MW. The
asset comprises the onshore and offshore substations and under-sea
cables connecting the mainland electricity grid network to Barrow
wind farm. The project has been operational since 2006, which will
allow for an immediate yield to INPP investors.
Key features of the project are:
-- 18.5 year revenue term, with the potential for extension
after this initial period
-- Availability based revenue stream, with protected downside
(potential deductions capped at 10% of base fee 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 with conservative gearing and debt
in place for the duration of the concession, ensuring no
refinancing risk
-- No construction risk, given the operational status of the
project
INPP is investing 100% of the equity and subordinated debt
totalling approximately GBP8 million. Senior debt has been provided
by Barclays, BNP Paribas and Lloyds.
The Transmission Capital Partners consortium has successfully
bid for four of the nine offshore transmission projects awarded by
Ofgem under its initial round of tenders, underlining its technical
and operational strength and experience of the rapidly growing
asset class. It is scheduled to reach financial close on the
remaining scheme by the end of 2011.
The consortium is also shortlisted for another three projects
under Ofgem's second round of tenders, which are due to be awarded
in 2012. New opportunities with a total development value of up to
GBP14bn are expected to be tendered to the private sector, during
the next nine years.
Commenting on the acquisition Keith Dorrian, Chairman of INPP
said: "The scale and market opportunity within this specialist area
of the renewable sector provides our shareholders with exposure to
an asset class with significant growth potential and the Company
remains well positioned for further success within this burgeoning
market."
Giles Frost, Director of Amber, Investment Advisor to INPP,
said: "The Transmission Capital consortium has reached another
landmark in closing its third offshore transmission project. The
stable, long-term revenue generation from these assets fits well
with our ongoing investment strategy."
A copy of the Ofgem press release can be found at
www.ofgem.gov.uk
For further information:
Erica Sibree +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 FTI
Consulting
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 109 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport and renewable energy
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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