Amber Infrastructure Limited (Amber), the leading infrastructure group, is pleased to announce that Transmission Capital Partners, the consortium comprising Amber Infrastructure, Transmission Capital and International Public Partnerships (“INPP”), has achieved financial close on the Barrow offshore transmission project.
This is the third offshore transmission project that Amber has sourced, developed and closed with its consortium partners and forms part of Ofgem’s initial round of nine tenders for the long-term license and operation of offshore transmission assets in the United Kingdom. It is scheduled to reach financial close on a fourth scheme by the end of 2011.
Barrow is an offshore wind farm, located in the east Irish Sea approximately 7 km south west from Walney Island off the Cumbria coast, UK with a generation capacity of approximately 90MW. The asset, which has been operational since 2006, comprises the onshore and offshore substations and under-sea cables connecting the mainland electricity grid network to Barrow wind farm.
The consortium will manage and operate the project for 18.5 years, with the potential for extension after this initial period. The scheme has an availability based revenue stream structure which is fully linked to UK RPI, with revenues guaranteed by National Grid Electricity Transmission plc (NGET), a subsidiary of National Grid.
INPP, the FTSE 250 listed specialist global infrastructure investment company advised by Amber, is providing 100% of the equity and subordinated debt for approximately £8 million. Senior debt has been provided by Barclays, BNP Paribas and Lloyds.
The consortium is also shortlisted for another three projects under Ofgem’s second round of tenders, which are due to be awarded in 2012. New opportunities with a total development value of up to £14 billion are expected to be tendered to the private sector, during the next nine years.
The announcement follows shortly after the Amber-led, Amber Green consortium was appointed to manage the £100 million London Energy Efficiency Fund (LEEF) on behalf of the Mayor’s London Green Fund (LGF). Amber also manages the £55 million Regeneration Investment Fund for Wales, part of the EUs JESSICA programme.
Giles Frost, Director of Amber, said: “The consortium has again underlined its technical and operational strength and experience in the rapidly growing asset class.Amber’s unrivalled public sector partnerships play a vital role in sourcing, developing and managing these assets and we continue to build on our long-term commitment to the offshore transmission and renewable energy sectors.”
A copy of the Ofgem press release can be found at www.ofgem.gov.uk
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Hugh Jonathan/Nick Westlake +44 (0)20 7260 1263/1345
Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297
Notes to Editors:
About Amber Infrastructure Group:
Amber Infrastructure is a leading international infrastructure specialist, providing asset management and investment advisory services in respect of over £4.1 billion of assets in the UK, Europe, Australia and North America. Amber’s core business focuses on sourcing, developing, advising on, investing in and managing infrastructure assets within the utilities, PPP, transport, renewable energy and regeneration sectors.
Amber provides investment advisory services to International Public Partnerships Limited (a FTSE 250 listed specialist global infrastructure investment company) as well as private investment funds, specialising in urban regeneration. Amber is headquartered in London with offices in Munich, Sydney, Melbourne and San Francisco and employs approximately 60 people, making it one of the largest international infrastructure specialists.
About Transmission Capital
Transmission Capital was established in 2008 to procure, construct, own and operate transmission assets, initially those in the UK being tendered through the new offshore transmission regulatory regime being overseen by Ofgem. It also provides transmission development advisory services to electricity industry stakeholders, including many offshore wind developers. The senior management team has over 70 years experience in the UK electricity supply industry, the majority of which has been focussed on the development, procurement and construction of major offshore transmission and wind projects.