Boston, MA - February 2, 2001
InterGen today announced the financial close of credit facilities for the Cottonwood Energy project, a 1200 MW natural gas-fired, combined cycle power facility. The facility, located south of Deweyville, in Newton County, Texas, will celebrate its official groundbreaking today.InterGen has successfully arranged non-recourse commercial bank senior debt financing for the construction and operation of the Cottonwood Project. Deutsche Bank and BNP Paribas are the joint lead arrangers under the project's Credit Agreement executed in late December. Completion of the Cottonwood Project's primary syndication is scheduled for mid-February, following which a general syndication will be launched. The finance plan has been very well received by the market and is based on an innovative borrowing base approach that will be replicated and applied to finance other development projects InterGen plans in North America.
Intergen Completes Debt Financing And Breaks Ground On 1200 Mw Cottonwood Energy Project In Texas
"As InterGen's first major project in the United States, Cottonwood represents an important step forward in our strategic plan to apply our international development expertise to the important U.S market," said Carlos Riva, President and CEO of InterGen.
"We are very pleased to be moving forward with Cottonwood. We now have the foundation for rapid expansion in the North American market. Our significant turbine commitments, proven global track record, newly acquired Coral Energy assets and InterGen's equity holdings in Coral Marketing and Trading combine with our power asset development / deployment expertise, positioning us well for U.S. gas and power merchant markets," said Steve Weyel, President of InterGen North America.
Bechtel Power will build the facility under a turnkey contract. The Cottonwood facility is expected to begin commercial operations by mid 2003. Natural gas will be supplied to Cottonwood by two natural gas transportation pipelines, the Texas Eastern and Channel Industries pipelines, both of which pass through the project site. Coral Energy will supply energy management services to the project.
The project will have a significant positive economic impact on the area, creating approximately 25 permanent, full-time operations period jobs, as well as 500 to 750 peak construction period jobs. In addition, the construction and first year of operation of the project will result in increases of over 60% to the Newton County property tax base and over 300% to the local school district tax base.
InterGen is an international power generation firm. The Company has in operation or construction 16 power stations representing 12,215 megawatts (MW). It also has projects in advanced development representing an additional 5,360 MW. The Company has projects operating and under construction and/or in advanced development in the United States, the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia, and the Netherlands, and is actively developing new projects across the globe. InterGen's North America operations center, based in Houston, is actively pursuing power projects in several U.S. states. InterGen is a Shell-Bechtel venture.