The Company also announced that it has achieved financial close on a comprehensive project financing package and plans to commence construction of the project immediately.
Facility construction is expected to take approximately three years, with commencement of operations targeted for late 2017.
The Dublin Waste-to-Energy Facility will provide the Dublin region with a long-term sustainable and environmentally superior waste management solution, enabling it to divert post-recycled waste from landfills and become locally self-sufficient in managing waste, consistent with regional, national and EU waste policies.
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When complete, the facility will generate clean renewable energy to supply 80,000 homes, reducing Ireland's reliance on imported fossil fuel, and has also been designed with technology and infrastructure to provide enough heat to meet the equivalent needs of over 50,000 homes if a district heating system is implemented in the future.
"We are extremely pleased to be partnering with the Dublin regional authorities to commence construction of this very important project, and I'm confident that this public private partnership will deliver long-lasting value for our client communities, as well as for our shareholders," said Covanta CEO and President Anthony J. Orlando. "The facility will be state-of-the-art in all respects, including energy efficiency and environmental performance, and will provide a meaningful boost for the local economy."
The total investment in the construction of the facility will be approximately €500m, funded by a combination of third party non-recourse project financing (€375m) and project equity invested by Covanta (approximately €125m). The third party project funding includes €300m of project debt, representing approximately 60% leverage, and a €75m convertible preferred investment by the energy infrastructure arm of First Reserve.
(CD/JP)
