SNC-Lavalin Generation, a subsidiary of Canadian engineering group SNC-Lavalin, has agreed to invest in a 20 percent stake in Astoria Energy II, a project to develop, own and operate a new natural gas power generation plant in New York City.
The company is to invest around $70 million for the interest in the project vehicle, which was granted the 20-year tolling agreement by the New York Power Authority last year.
Construction of the new plant is already underway and is expected to conclude in 2011.
The other equity partners in Astoria Energy II are SUEZ Energy Astoria II, a subsidiary of GDF SUEZ, EIF Astoria IV, and JEMB Astoria II.
SNC-Lavalin Constructors, another SNC-Lavalin subsidiary, will act as the engineering, procurement and construction manager of the new facility.
Astoria Energy II has just closed a financing package to cover its project costs. The financing was provided by 13 financial institutions, with Bank of Tokyo-Mitsubishi UFJ, Calyon, Export Development Canada, Natixis, Société Générale Americas Securities, Union Bank North America and WestLB acting as joint lead arrangers.
The investment in Astoria Energy II joins a number of other infrastructure concession investments in SNC-Lavalin’s portfolio. The group’s other infrastructure investments include a 100 percent equity interest in a concession to operate and maintain the William R. Bennet Bridge in Kelowna, British Columbia, for 27 years, and a 51.07 percent stake in the company that manages Vatry Airport in north eastern France.