Establishment of construction financing for the expansion of Buksefjordværket in Nuuk
NunaGreen Construction A/S (NunaGreen) is inviting potential lenders to participate in providing the construction financing regarding the expansion of Buksefjordværket in Nuuk.
The expansion of Buksefjordværket is expected to have a capacity of 660 GWh and will utilize water from lake Kangerluarsunnguup Tasersua in Nuuk. The expansion will ensure that the citizens of Nuuk will have access to green renewable energy from the hydropower plant.
NunaGreen is currently preparing the procurement of a turnkey contract regarding planned construction works related to the expansion. Completion of construction and start of operations is expected in late 2029.
The construction cost and long-term ownership is expected to be financed with Construction Financing. The required committed amount of for the full Construction Financing for the expansion of Buksefjordværket is expected to exceed DKK 2.000 million with expected drawdown starting in January 2025.
The construction financing is expected to be backed by a stable and long-term revenue from a lease agreement with the government owned utility company “Nukissiorfiit” and guarantees from the Danish State and the Government of Greenland.
NunaGreen have prepared information material (“Request For Proposal”) to help potential lenders evaluate this opportunity. The information package will be shared with interested parties on or after 10 November 2023, after receipt of a signed NDA.
NunaGreen will host a joint online information meeting to give an introduction to the Project, procurement process, financials, selection criteria etc. All interested potential lenders are invited to participate in the information meeting Admission can be requested from Karen@nunagreen.gl no later than 17 November 2023 and will require execution of a confidentiality undertaking.
NunaGreen expects to shortlist 3-5 potential lenders in January 2024 pursuant to the following process.
| Joint online information meeting | 20 November 2023 at 12.00 noon (CET) |
| Deadline for potential lenders to submit an expression of interest | 24 November 2023 |
| Individual clarification meetings | 27 November – 8 December 2023 |
| Deadline for potential lenders to submit an indicative offer | 20 December 2023 at 12.00 noon (CET) |
| Shortlisting of 3 – 5 potential lenders | Early January 2024 |
Suitability criteria
Any potential lender that wants to provide an indicative offer must meet the suitability criteria below:
(A) Have a balance sheet total of more than
DKK million 250,000 (as calculated on 31 December 2022), or
(B) offer mortgage loans in Denmark or Greenland, or
(C) be locally represented as bank in Greenland.
All potential lenders who have an interest in this opportunity should contact Line Frederiksen, Chief Financial Officer by mail (lif@nunagreen.gl) no later than 17 November 2023 or Karen Anne Arleth, by mail (Karen@nunagreen.gl), to attend the online information meeting.
Published 6.11.2023
