Genex Power Limited has announced it is targeting financial close for the 250MW Kidston pumped storage project in the next three months, with Northern Australia Infrastructure Facility (NAIF) extending the validity of its offer for a long-term concessional debt facility for the Project of up to $610 million to 30 September 2020.
Genex said it has finalised terms with all the construction contractors for the various elements of the project, and revalidated the Powerlink offer to connect and the NAIF Investment Decision until September. This will allow Genex to complete the project equity process, which is well underway, and finalise negotiations with the Queensland Government around the co-funding of the Kidston to Mt Fox transmission line. An agreement with the Government on the ongoing operations and maintenance of the transmission line is the only item that is outstanding at this point.
Kidston has been described as a critical project for Queensland and Australia and will be the first pumped storage hydro project in the NEM in almost 40 years, delivering over 500 direct construction jobs over the next four years.
The NAIF concessional debt facility is intended to provide 100% of the debt financing for the Project. The offer remains subject to a number of conditions precedent including the finalisation of negotiation and execution of various documentation.
Genex also announced that it has finalised terms with core contractors on the project who include:
- Engineering, Procurement and Construction (EPC) contractor – Joint Venture of McConnell Dowell Constructors (Aust) Pty Ltd and John Holland Pty Ltd;
- Electromechanical Equipment subcontractor to EPC – Andritz Hydro GmbH;
- Connection Assets Infrastructure – Beon Energy Solutions Pty Ltd;
- Construction Camp Operator – ISS Facility Services Australia Ltd;
- Owner’s Engineer – Hydro Tasmania (trading as Entura).
In addition to the above construction contractors, Genex has concluded terms with Andritz Hydro GmbH to act as the Operations and Maintenance provider to the Project under a long-term Operations and Maintenance Agreement. It also signed a binding Energy Storage Services Agreement with EnergyAustralia in March 2020.
The construction program for the Kidston project is scheduled over 3.75 years and has a total capital cost (including all site costs and contingency allowances) of approximately $600 million, excluding transmission costs, financing costs and Genex’s development costs to date. This pricing has been supplied with validity to 30 September 2020, to align with the extension of the NAIF offer for funding.