The ESB has awarded a mandate to the Royal Bank of Scotland to arrange and underwrite non-recourse financing facilities totaling almost €700 million to finance the development of a power plant at Amorebieta near Bilbao in northern Spain, writes Conor Lally
Construction of the 800 megawatts (mw) combined cycle (CCGT) gas-fired power plant is expected to begin in the next six months and be operational in late 2005. It will be the first international independent power plant in Spain.
The Royal Bank of Scotland deal to arrange and underwrite the monies comes after an extensive tendering process.
The new plant will use natural gas to produce 800mw of electricity. This type of power generation uses a combination of natural gas and modern technology, resulting in the cleanest form of commercial power production, according to the ESB. The region where the plant will be situated currently imports more than 80 per cent of its electricity.
Plans to build the plant were first mooted in 1997. In March 2001, the Spanish government cleared the way for the project when it awarded the firm a positive Declaration of Environmental Impact in relation to the project.
The ESB anticipates selling a minority stake to a joint venture or strategic partner once the plant goes live. The most likely potential partners are oil or gas firms. The company is already linked to Statoil, with which it built a similar plant at Ringsend which has capacity to produce 400mw.
The Spanish plant will be twice the size of this operation. Moneypoint can produce 900mw. The ESB has been involved in international projects for 25 years and has worked in more than 100 countries. Its consultancy and engineering business, ESB International, employs 850 staff in Ireland and abroad, with turnover exceeding €127 million annually.
