The new power plant at Tynagh in Co Galway, which is expected to start operating early next year, is backed by more than €132 million in borrowings, according to accounts lodged with the Companies' Office.

The balance sheet for Tynagh Energy Limited shows the company posted losses of €9.1 million in 2004, although this is likely to change significantly when the plant comes into operation.

The loans that the company is using all have long-term maturity dates. The vast majority of loans, according to the documents, are provided by Royal Bank of Scotland.

There is more than €15 million in shareholder loans. In excess of €12 million of this has come from Gama Construction (which holds an 80 per cent stake), with the rest from Mountside Properties, which has put in €3.1 million. It has a 20 per cent shareholding.

The Royal Bank of Scotland holds a range of securities over Tynagh Energy in exchange for advancing the funds. This includes a charge over shares in Tynagh Energy and over the Co Galway property.

The accounts show that Tynagh had considerable capital commitments to meet in 2004. The biggest of these was an engineering contract held by Gama itself worth €62.5 million.

Gama Construction is planning to sell some part of its 80 per cent stake in the station. While 40 per cent is the most likely amount to be sold, it has not ruled out selling its entire holding if the price is right.