DBRS: InPower on negative review

DBRS said it placed the rating of InPower BC General Partnership’s senior secured bonds under review with negative implications.

InPower BC General Partnership is a special purpose entity created to design, build, finance and maintain a replacement hydroelectric plant on the Campbell River of Vancouver Island under a 19.75-year project agreement with the British Columbia Hydro & Power Authority, DBRS said.

The negative review results from the decision of SNC-Lavalin Inc., the design-build contractor on the project, to replace the subcontractor responsible for the supply and installation of the turbines and for their maintenance of the units during the 15-year service phase under a joint venture, the agency said.

The subcontractor was unable to provide the performance security required under the supply contract within the prescribed time, DBRS said.

The details of the proposed arrangement remain confidential as negotiations between the parties are still underway, the agency added.

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