goldendale - nepco epc , ge 7 fa louise ,
just a heads up on an opportunity you might hear about :
- nepco has an epc contract with a small ipp for a 245 mw combined cycle project in goldendale , wa , adjacent to an aluminum smelter
- nepco brought an eecc turbine to the project as part of the epc contract
- the developer ' s financing fell through 3 weeks ago ( they attempted a highly structured muni - bond financing with tolls for marketers and the smelter )
- nepco has been paid several million $ for engineering services , but construction wont start until a big payment ( $ 30 mm + ) is made april 18
- when the financing fell through they called the big generators to see who would step up - reliant was the most agressive , but last week reliant changed their bid - instead of paying up - front they will pay at cod subject to high delay damages
- the developer appears to be in a bad box
- nepco called us last week - the developer would like enron to provide construction financing
- i sent in a swat team to check out the project
- in general , we like it , but i am not interested in lending $ to other people , so i am figuring out if we could just buy it . it is approx $ 200 mm to construct but its early time to market may make it economic
three things could happen here :
1 ) someone else buys it and nepco continues with their epc contract
2 ) enron buys the project from the developer , constructs and flips
3 ) project dies altogether - in this case we want to make sure ena gets the turbine - janet and i wanted it last year ; now duran , jacoby and i still want it .
i will keep you posted .
regards ,
chris
goldendale - nepco epc , ge 7 fa
louise ,
just a heads up on an opportunity you might hear about :
- nepco has an epc contract with a small ipp for a 245 mw combined cycle project in goldendale , wa , adjacent to an aluminum smelter
- nepco brought an eecc turbine to the project as part of the epc contract
- the developer ' s financing fell through 3 weeks ago ( they attempted a highly structured muni - bond financing with tolls for marketers and the smelter )
- nepco has been paid several million $ for engineering services , but construction wont start until a big payment ( $ 30 mm + ) is made april 18
- when the financing fell through they called the big generators to see who would step up - reliant was the most agressive , but last week reliant changed their bid - instead of paying up - front they will pay at cod subject to high delay damages
- the developer appears to be in a bad box
- nepco called us last week - the developer would like enron to provide construction financing
- i sent in a swat team to check out the project
- in general , we like it , but i am not interested in lending $ to other people , so i am figuring out if we could just buy it . it is approx $ 200 mm to construct but its early time to market may make it economic
three things could happen here :
1 ) someone else buys it and nepco continues with their epc contract
2 ) enron buys the project from the developer , constructs and flips
3 ) project dies altogether - in this case we want to make sure ena gets the turbine - janet and i wanted it last year ; now duran , jacoby and i still want it .
i will keep you posted .
regards ,
chris