Canada developer Innergex Renewable Energy Inc. announced its affiliate has closed C$168.5 million (US$166.28 million) in financing for the 49.9-MW Kwoiek Creek hydroelectric project on Kwoiek Creek in British Columbia.
Kwoiek Creek Resources L.P., a joint venture of Innergex II Power Trust and the Kanaka Bar Indian Band, is developing the run-of-river project on the tributary to the Fraser River. Construction began in late 2011 after 18 years of planning and preparation. The developer obtained more than 50 approvals, permits, and licenses from 14 government regulatory bodies.
The non-recourse and term project financing carries a fixed interest rate of 5.075 percent. It is to convert to a 39-year term loan upon start of the project's commercial operation and will amortize over 36 years starting three years from then.
Financing was arranged with a group of life insurance companies: Manufacturers Life Insurance Co., agent and lead lender; Canada Life Assurance Co.; and Great-West Life Assurance Co.
Electricity will be sold to BC Hydro under a 40-year contract resulting from the utility's 2006 call for tenders for clean energy. An 80-kilometer transmission line is being built between the project and the Highland Valley substation near Ashcroft.