Lincoln Gap developer says project is back on track after funding deal with construction partner

The developer of the $480 million Lincoln Gap wind farm near Port Augusta says the project is back on track after reaching a payment deal with its embattled construction partner.

Construction on Lincoln Gap Wind Farm will continue, following an agreement with subcontractors.

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The developer of the $480 million Lincoln Gap wind farm near Port Augusta says the project is back on track after reaching a payment deal with its embattled construction partner.

Up to 100 subcontractors stood down from the project earlier this month after German contractor Senvion called in administrators.

However in order to ensure construction continues, developer Nexif Energy says it has reached an agreement to pay subcontractors directly for outstanding debts owed.

“These arrangements will be implemented over the coming days and include the provision of funding for Senvion’s on-site subcontractors through direct payment of amounts owing to continue work on the project, which is quickly taking shape,” the company said in a statement.

“Nexif Energy has been working hard on the positive pathway forward for the project and its workers over the past two weeks since becoming aware of Senvion’s difficulties.”

Nexif says payments will be arranged this week, with subcontractors expected to return to site this week.

Senvion, which remains the principal contractor on the project, last week signed a 100 million euro funding deal with its lenders as it works through a global transformation plan.

On Friday the company’s chief executive Yves Rannou said it was seeking investors to buy into the company, with large wind turbine companies and private equity firms circling.

Meanwhile the Lincoln Gap project exported its first electricity to the state’s grid last week, with three turbines currently operational.

A second crane is due on-site early next month to support the commissioning of other turbines over the coming months.

By 2021, the Lincoln Gap wind farm is expected to accommodate 59 turbines, generating 212MW of electricity — enough to power 155,000 households.

Nexif has previously said its Lincoln Gap plans include 10MW of grid-scale battery storage and potentially solar generation to create a “hybrid energy hub”.