Post by
mardytrader on Nov 14, 2008 6:26am
turbine supply agreement
The corporation entered into a turbine supply agreement (TSA) service agreement and warranty agreement, and other fixed balance-of-plant contractual commitments for the Dokie I project. The service agreement commitment is subject to increase annually by the percentage change in consumer price index (CPI). As part of the TSA requirements, a payment performance letter of credit was posted for $121.8-million. This letter of credit is supported by the turbine supply loan facility. Under the terms of the TSA, the corporation made interim payments of approximately $4.2-million prior to the end of September, 2008, which commensurately reduces the letter of credit, with an additional interim payment of $4.2-million expected prior to the end of December, 2008. The balance of payments under this contract is anticipated to occur in 2009