The Northern Australia Infrastructure Facility (NAIF) congratulates Genex Power Limited on reaching financial close for the 250MW Kidston Pumped Storage Hydro Project.
The project is NAIF’s largest investment decision to date through a loan of up to $610 million to the project that is forecast to create more than 500 construction jobs and deliver affordable, reliable electricity for north Queensland.
Financial close means the satisfaction of all conditions precedent associated with the Project, including subscription of equity and full effectiveness of all Project Documents as well as the NAIF loan facility and a funding agreement from ARENA.
With construction activities underway at the Kidston site, it is anticipated that the company will shortly begin to draw on the loan facility provided by NAIF.
Construction activities carried out on site so far include the installation of accommodation units at the Oaks Rush accommodation village and at Kidston, upgrade of the access ramp to Eldridge Pit, and installation of a new communication system. Rock material sampling and testing for concrete production has been completed, and pumps are being mobilised to site to commence the initial dewatering of the Eldridge pit.
NAIF CEO Chris Wade said: “NAIF was an early supporter of the transformational Kidston Pumped Storage Hydro Project and we congratulate the project sponsors on achieving financial close. This is a transformational project for North Queensland and it is pleasing to see that construction activities have commenced on site. NAIF looks forward to continuing our partnership with the project parties as they work towards construction and delivering the significant economic and employment benefits to the region.”
Construction is expected to be completed by late 2024.
Across northern Australia as a whole, NAIF has to date supported 25 projects with committed investment worth $2.9 billion, which is forecast to generate around $9.4 billion in economic benefit and support around 9,000 jobs. In Queensland, NAIF has approved just over $1 Billion of loans to ten projects.
Genex Power Limited’s release can be found here.