Infrastructure Capital Group (ICG) is pleased to advise the Diversified Infrastructure Fund (DIT) has, in partnership with Veolia, invested in the Springvale Water Treatment Plant (Springvale WTP).
The Springvale WTP is being built under a 15 year Build Own Operate and Transfer contract to enhance the environmental outcome, and allow for the continued operation of the Mount Piper Power Station (MPPS). It has been commissioned by EnergyAustralia and the Springvale Joint Venture, who are the counterparties to the contract. The MPPS is a relatively new power station and provides approximately 15 per cent of NSW’s power.
The investment in Springvale WTP is DIT’s first investment in Australian water infrastructure, and we are pleased to further enhance the Fund’s sector and investment diversification. The investment was sourced through ICG’s relationship with Veolia.
ICG is particularly excited to be partnering with Veolia on this investment. Veolia is a global wastewater treatment management company and is a highly regarded builder and operator in the water sector. The partnership provides potential to open up further proprietary transactions.
The contract terms provide DIT investors with stable cashflows over the life of the project, and an attractive forecast Equity IRR.
Construction of the Springvale WTP is expected to be completed in 2019.