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Kleen Energy: LICAP's heir

01 May 2008

Read more: [kleen energy] [project finance]

Goldman Sachs has launched the $1.15 billion construction financing for the Kleen Energy power project to retail syndication. The financing is a rarity in the north-eastern US, since it benefits from a strong contract with a local utility. But several quirks in the deal, including its construction risk mitigation and syndication approach, also set it apart from previous practice in the power finance business.

Kleen Energy is a proposed 620MW combined-cycle gas-fired project that can run on both natural gas and low-sulphur fuel oil. It is located close to Middletown, in the central part of Connecticut. Its developer is William Corvo, an industry consultant, who continues to be represented as a sponsor through his stake in White Rock Holdings.

The principal sponsor of the project is now EIF Group, through three of its power funds – United States Power Fund II LP, USPF II Institutional Fund LP and United...


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