LONDON, UK: BBGI Global Infrastructure S.A. (LSE: BBGI) has completed an investment in InPower BC General Partnership, the entity responsible for delivering the John Hart Generating Station Replacement Project (, an investment made through the existing strategic partnership between the Company and SNC-Lavalin Group Inc. (TSX ticker: SNC).
The public-private partnership project consisted of the design, construction, financing, maintenance and rehabilitation of a new three-turbine, 132-MW hydroelectric power generation station on the Campbell River, British Columbia, including a 3 generating unit underground powerhouse, 2.1 kilometers of water passage tunnels and a water bypass system to protect downstream fish habitat.
The new infrastructure replaces the outdated aboveground facilities which were built in 1947 with a more reliable, seismically robust and environmentally friendly facility. The project is Canada’s first public-private partnership project in the hydropower sector.
Service commencement was achieved in 2019 and the concession runs until 2033. The asset is classified as availability-based under the investment policy of the Company. The investment is not subject to demand or power price risk.
Availability payments are received from the British Columbia Hydro & Power Authority (rated AA / Aaa by DBRS Morningstar and Moody’s respectively) a crown corporation wholly owned by the Government of British Columbia.
John Hart Generating Station generates clean and reliable energy for over 80,000 homes. The station is located on the Campbell River on Vancouver Island. Water intake comes from the John Hart Reservoir, directed to an underground powerhouse through tunnels and three turbines. The water is subsequently released into the Campbell River.
The John Hart Generating Station project is recognised throughout the hydro industry as a case study for technical and innovative solutions, including winning two awards: The Tunnel Association Canada project excellence and the Canadian Hydropower Association outstanding project of the year award. Other past awards include the Canadian Council for Public-Private Partnerships National Gold Award for Project Financing, P3 Bulletin “Best Water/Energy Project” and the “Projects Grand Prix”.
BBGI’s investment is approximately CAD 41 million and is being funded from the Company’s existing cash resources and drawing upon the Company’s GBP 230 million corporate revolving credit facility.
Following this acquisition, BBGI now owns a globally diversified portfolio of 55 infrastructure investments in the schools, healthcare, blue light (i.e. fire and police stations), affordable housing, justice facilities and transport sectors, which are geographically located in Australia, Canada, Continental Europe, the UK and the US.
The Company seeks to limit and reduce investment risk where possible, with the current portfolio benefitting from 100% availability-based assets of which over 99% are operational. The Company also maintains a diversified supply chain in regard to facilities management and operational and maintenance (“O&M”) contractors.
Commenting, Co-CEOs Duncan Ball and Frank Schramm said: “We are delighted to complete this high-quality availability-based infrastructure investment with strong ESG credentials. Our strategy is to remain disciplined and selective in our approach to acquisition opportunities by only investing in availability-based assets that also align with our ESG principles, and not in higher risk infrastructure asset classes.”
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