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First drawdown on Lincs imminent
20 June 2012
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[centrica]
[dong]
[siemens]
[lincolnshire]
[ofgem]
Centrica, Dong and Siemens are expected to start the first draw on the debt backing the construction of the 270MW Lincs offshore wind farm shortly. Earlier this month, the sponsors closed a £425 million ($540.1 million) project financing with a club of 10 banks for the final stage of construction. The deal is one of the first offshore projects where lenders have been willing to accept construction risk.
Centrica bought the project in 2004 from Renewable Energy Systems. In 2008, the UK-based utility obtained planning permission and sold each of Dong and Siemens a 25% stake in the project. Construction began in 2010, including the building of offshore and onshore substations and the connecting transmission cables.
But the project itself has been beset by delays to the installation of two transmission cables across a seawater marsh and mud flats, illustrating the newer types of construction risk present in...
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