$700 million

2012 Rank: 43

2011 Rank: 37

Sector: Natural Gas

Location: North Battleford, Saskatchewan

Owner: Northland Power

Key players:

Engineer: Kiewit Power Partners (engineering, procurement, construction)

Supplier: Alstom (steam turbine, generator, heat recovery steam generator, six turbine control system); General Electric (gas turbines)

Funding: Private

Financing: Financing was provided by an international syndicate of 15 banks led by the Canadian Imperial Bank of Commerce, the Bank of Montreal, and Union Bank. The financing consists of a $542-million non-recourse construction loan that will convert to a seven-year amortizing term loan after the start of commercial operations and letter of credit facilities for an additional $38 million to support the project’s other obligations. Northland has also negotiated a swap to fix the term loan rate over the entire 20-year duration of the project’s PPA with SaskPower. In addition to the three lead banks, the remaining syndicate members were: Allied Irish Banks p.l.c., National Bank of Canada, The Bank of Nova Scotia, Mizuho Corporate Bank Ltd., Siemens Financial Ltd., Société Générale, Sumitomo Mitsui Bank Corporation of Canada, The Toronto-Dominion Bank, Bayerische Landesbank, Canada Western Bank, Landesbank Hessen-Thüringen Girozentrale, and Natixis.

Under the PPA the project will receive monthly payments that are designed to cover all fixed costs and investment returns. The PPA also provides protection against changes in the market price of natural gas, as fuel costs are passed through to SaskPower. Northland Power will be responsible for operating the plant to achieve specified efficiency and reliability levels. The contractual structure of the project is designed to ensure predictable, stable and sustainable cash flows over the entire 20-year term of the PPA. The fund intends to finance the project largely using non-recourse project debt, its line of credit and cash on hand.

Status: Under construction, with expected completion in 2013.

Description:

All power produced by this 261 MW natural-gas-fired combined cycle plant will be sold under the Power Purchase Agreement to SaskPower.