Nov 13, 2019

Genex wins breathing space on $610m NAIF loan offer

Genex wins breathing space on $610m NAIF loan offer

The Northern Australia Infrastructure Facility (NAIF) Board has extended its $610 million loan offer for the Kidston Stage 2 pumped storage hydro project.

Concerns were raised over the status of the loan offer last week after electricity retailer EnergyAustralia dashed proponent Genex Power’s hopes of reaching financial close on the project this quarter when it failed to commit to a long-term energy agreement.

Genex said today that the NAIF Board had confirmed it had extended the date of its offer of long-term concessional loan funding from November 30 out to June 30 next year.

Proponent ‘maintaining the momentum’

“Genex welcomes the continuing support of NAIF in its development of the Kidston Pumped Storage Hydro Project, which reflects the significance of the project to Northern Australia,” Genex chief executive officer James Harding said.

“Notwithstanding the setback earlier this month, we are continuing to maintain the momentum built up this year for the project and, with the support of NAIF and our other stakeholders, we are progressing the
restructuring of the transaction with a view to achieving financial close on this iconic project as soon as possible.

“We will continue to keep the market informed as these activities progress.”

The Kidston Stage 2 Pumped Storage Hydro Project (K2-Hydro), is part of a proposed $1 billion renewable energy hub based at the former Kidston gold mine south-west of Cairns.

Other elements include the operating 50MW Stage 1 Solar Project (KS1), a multi-staged integrated solar project of up to 270MW (K2-Solar), and the Kidston Stage 3 wind project of up to 150MW.

The NAIF offer remains subject to a number of conditions precedent including the finalisation of the Queensland Government’s consideration of the project and its agreement for the approved funds to
be advanced.

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