The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

FOCOL Holdings yesterday unveiled a $379.2m financing package for its LNG-to-Power project, with executives revealing that the first major equipment shipment is due to arrive in The Bahamas next week as construction activity ramps up at Clifton Pier.

Dexter Adderley, the BISX-listed company's president and chief executive, said the financing platform officially closed on Labour Day and will fund critical infrastructure designed to support the country's transition to liquefied natural gas (LNG).

"On Friday, June 5, Labour Day in The Bahamas, at approximately 4:24pm, FOCOL's financing platform for its LNG-to-Power project officially closed for a total of $379.2m," said Mr Adderley.

"This represents confidence in the project, confidence in the structure behind it, confidence in the people responsible for delivering it and confidence in the future of energy infrastructure in The Bahamas."

The financing package includes a $335m Bahamian dollar syndicated loan led by CIBC Caribbean and supported by RBC Royal Bank, Scotiabank and Bank of The Bahamas, together with a $42.2m US dollar component from the US Export-Import Bank and its funding partner, the Private Export Funding Corporation (PEFCO).

Mr Adderley said FOCOL has already invested more than $165m in the LNG terminal project and is now moving from planning to execution.

"Since then, with the support of our partners, we have committed more than $165m to the LNG terminal project, allowing us to complete early civil works at Clifton Pier and secure all critical-path equipment and services necessary for timely delivery of the facility," he said.

He added that construction activity is expected to become increasingly visible over the coming weeks.

"Turner Construction has now fully mobilised, with its team arriving at the site today, and the first delivery of equipment is currently en route to The Bahamas and scheduled to arrive at Clifton Pier on or about June 15," Mr Adderley said.

"Within the next 30 days, the progress we have been preparing for will become increasingly visible at the project site."

The project is intended to introduce LNG into The Bahamas' energy mix and support construction of a combined-cycle power plant designed to improve efficiency and reliability for New Providence electricity consumers.

"The LNG-to-Power project is intended to support greater fuel flexibility, improve reliability and contribute to a more efficient energy platform for New Providence," said Mr Adderley.

Speaking at the financing signing ceremony, Adam Carter, CIBC Caribbean's managing director and head of investment banking, said the transaction represented a milestone not only for FOCOL but also for the Bahamian banking sector.

"This financing is, to our knowledge, the single largest local financing on record," said Mr Carter.

He added: "This transaction demonstrates that domestic financial institutions have the strength, talent and confidence to support an all-Bahamian company with a financing of this magnitude."

Mr Carter described the financing as "a platform for growth", arguing that it provides FOCOL with the flexibility to continue pursuing expansion opportunities while advancing its energy investments.

Energy minister Jobeth Coleby-Davis said the LNG initiative remains a central pillar of the Government's energy reform strategy.

"This LNG transformation is one of the key aspects of energy reform because once we advance to cleaner, more affordable fuel, there is no stopping our energy sector," she said.

"There is no stopping the possibilities of the technologies we can adopt and the opportunities available to BPL and the wider energy sector."

Mrs Coleby-Davis said Government officials continue to meet regularly with project stakeholders to keep implementation on schedule.

"We meet at 8am every Monday morning to ensure our plans remain on track and that we continue advancing reliable, affordable and sustainable energy reform for the Bahamian people," she said.