SNC-LAVALIN INVESTS IN NEW YORK CITY NATURAL GAS POWER PLANT
SNC-Lavalin announced today that its wholly owned subsidiary, SNC-Lavalin Generation Inc., has signed an agreement to invest approximately US$70 million for a 20% interest in Astoria Energy II to develop, own and operate a new natural gas power plant in greater New York City. Financing for over US$1 billion has just been closed with 13 international financial institutions jointly led by Natixis, WestLB AG, Export Development Canada, Calyon, Societe Generale Americas Securities, Bank of Tokyo-Mitsubishi UFJ and Union Bank, NA.
In July last year, Astoria Energy II was awarded a 20-year tolling agreement by the New York Power Authority (“NYPA”), a New York State public authority, for the supply of energy and capacity of an approximately 550 MW combined cycle thermal power plant at the Astoria site in New York. Construction has begun and is expected to be completed by summer 2011. Once completed, the new facility will provide electrical power for NYPA customers.
SNC-Lavalin Constructors Inc., another SNC-Lavalin wholly-owned subsidiary, is the engineering, procurement and construction manager (EPCM) of the facility.
“We are pleased with this investment, and with the 20-year power purchase agreement with a client as prestigious as NYPA,” said Gilles Laramée, Executive Vice-President and Chief Financial Officer, SNC-Lavalin Group Inc. “This investment adds to the value of our portfolio of infrastructure concession investments.”
SNC-Lavalin Generation Inc’s equity partners in Astoria Energy II are: SUEZ Energy Astoria II, LLC, a subsidiary of GDF SUEZ; EIF Astoria IV, LLC; and JEMB Astoria II, LLC.
SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a major player in the ownership of infrastructure, and in operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 35 other countries around the world, and are currently working in some 100 countries. www.snclavalin.com
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