25 July 2012
Watson, Farley & Williams LLP (“WFW”), a leading international law firm, is pleased to announce that it has advised Velocita Energy Developments on the project financing of the Maerdy onshore wind farm project, located in the Rhondda Valley in South Wales.
The project will use eight Siemens SWT 3.0-101 direct drive turbines and will have a total capacity of 24 MW. BTMU is providing a project finance term loan of £33.5 million, as well as VAT and working capital facilities. Power will be sold under a long-term contract to Statkraft, and CA Blackwell will provide civil and electrical works. Financial close occurred on 28 June 2012 and construction of the project began shortly afterwards.
WFW also advised Velocita Energy Developments on the acquisition of the project company, Maerdy Windfarm Limited, from Renewables Energy Partnerships in autumn 2011.
Velocita Energy Development is a new wind energy company, funded by private equity house Riverstone Holdings, to develop, construct and own wind projects across Europe.
The WFW team on the project financing was led by Finance partner, Evan Stergoulis, assisted by James Rennard (Finance), Joe Hesketh (Projects), Simon Folley (Real Estate), Iris Wong (Finance) and Natalie Georgiou (Finance).
Evan Stergoulis, partner in the Projects, Commodities and Export Finance group said: “We are very pleased to have assisted Velocita Energy Developments in achieving financial close on the project financing of its first UK deal. This is a further demonstration of our onshore wind and project finance capabilities.”
Andrew Lee, CEO of Velocita Energy Developments, said: “We are delighted to have reached financial close at Maerdy and put into construction our first UK project. The Maerdy project is well-conceived and developed and has received good support locally. We are delighted to be working with construction and banking partners of the highest quality as we deliver on our corporate objective
of constructing and operating windfarms of the highest technical, contractual and financial calibre. Well located wind energy projects that are sensitive to the local conditions and the environment such as Maerdy, have the potential to make a very positive contribution to the local and national economy and energy balance and can be proven to be a logical low-cost source of energy.”