Boralex Inc. signed a binding letter of agreement to acquire a 22 MW run of the river hydroelectric power project owned by Sequoia Energy Inc. in British Columbia. The project will require investments of C$60 million ($58.8 million), and construction is scheduled to begin soon.
The deal is subject to the signing of a formal agreement to finalize the terms of the letter of agreement, and to standard closing conditions. Boralex expects the transaction to close in the fall of 2012 and that the financing for the project will be in place before the end of the year.
The project is expected to begin commercial commissioning in late 2013. BC Hydro signed a 40-year power purchase agreement and has a 20-year renewal option.
Boralex and Sequoia will work together throughout construction up to commercial operation.
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