Allens has advised on the provision of a US$18 million senior debt facility from the Australian Infrastructure Financing Facility for the Pacific (AIFFP) to Solar Pacific Pristine Power for the development of a 15.279MWdc solar photovoltaic facility and 10.2MWac/12.9MWh battery energy storage system in Palau.
The project is to be located in Babeldaob, the largest island in the Republic of Palau. The project will operate under a long-term offtake arrangement with the Palau Public Utilities Corporation. On completion it will deliver up to 23,000MWh per year into Palau's energy grid, meeting up to 20% of Palau's annual energy requirements.
In addition to the senior debt facility, the project will also benefit from additional funding of up to US$4 million from the Commonwealth of Australia through the AIFFP.
'We are pleased to have assisted to achieve financial close on this complex transaction which has required engagement across multiple jurisdictions including in Australia and the Pacific. When complete, the project will deliver up to 20% of Palau's annual energy requirements,' said lead Rob Watt.
This project will deliver Palau's first renewable energy infrastructure, and will increase the country's self-sufficiency in power generation by reducing its dependence on imported fossil fuels.
Allens legal team
Banking and Finance
Rob Watt (Partner), Jamie Guthrie (Senior Associate), Darwin Ni (Associate), Chathurika Ravindra (Associate), James Hodgson (Graduate)