1 Aug 2005
Energy Developments announced today that the Company has now agreed the detailed commercial terms of financing arrangements for the West Kimberley Power Project ('the Project') and expects to execute final loan documentation on or around 5 August 2005. The financing for the project is to be provided by a consortium comprising ABN AMRO, ANZ Investment Bank and National Australia Bank.
As previously announced, the Project involves ENE constructing an LNG plant at Karratha, the transportation of LNG to Broome, Derby, Fitzroy Crossing and Halls Creek and the provision of gas fired power stations to provide clean, reliable and economical power at these towns. A diesel fired power station will also be constructed at Looma. The power stations are based on multi unit efficient
The Company also advises that it has now agreed certain variations to the West Kimberley Power Project Power Purchase Agreement dated 2 July 2004 ('the PPA') with Western Power Corporation (Western Power) which, subject to the execution of the financing documentation noted above, will allow the parties to declare the PPA unconditional.
With the resolution of these and other related matters, the Company will also today place orders with key suppliers
for the long lead items required for the Project including LNG plant and associated infrastructure and LNG storage tanks. Placing these orders in advance of final loan documentation is required to meet the delivery schedule of the project.
ENE's Managing Director, Mr. Chris Laurie said today that the agreement of the financing arrangements and today's agreement with Western Power represents the culmination of extensive efforts by all parties over the past year and now
puts the Company in a position to proceed with the delivery
of the Project.
A detailed summary of the Project, including financing and project delivery schedule, will be provided to the market at the time of execution of the financing documentation.
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