Innergex: Financial Closing of the Innavik Hydro Project in Inukjuak, Quebec
Longueuil, Canada - Innergex Renewable Energy Inc. and the Pituvik Landholding Corporation announce the closing of a $92.8 million project financing with The Manufacturers Life Insurance Company for the construction of Innavik, a 7.5 MW run-of-river hydroelectric facility on the Inukjuak River near Inukjuak, Nunavik, in northern Quebec.
The total construction costs are estimated at $127.8 million and will be mainly financed through the $92.8 million construction loan. The construction loan will convert into a 40-year term loan carrying a fixed interest rate of 3.95% once the facility reaches commercial operation scheduled in December 2022. The 40-year term loan is set to match the duration of the 40-year power purchase agreement signed with Hydro-Québec Distribution. The remaining $35.0 million will be financed by Innergex and Pituvik.
The Innavik Project is the first partnership (50:50) between an Inuit corporation and an independent power producer. This innovative project will provide customers of Inukjuak’s off-grid system with clean and renewable energy, replacing diesel for their basic electricity and heating needs.
The Innavik Project is expected to be able to produce a gross estimated long-term average of 54.7 GWh and a $8.6 million projected adjusted EBITDA per year on average for the first five years of operation.
Source: IWR Online, 06 Nov 2020