HICL Infrastructure Company Limited - Preferred Bidder Announcement
HICL Infrastructure Company Limited ("HICL" or "the Company"), the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce that Diamond Transmission Partners, a consortium comprising the Company and Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation), has been selected by Ofgem as the preferred bidder to own and operate the offshore transmission link to the Burbo Bank Extension windfarm ("Burbo Bank OFTO").
Under the offshore transmission owner ("OFTO") regime, the OFTO takes ownership of an operational transmission asset and receives contractual, availability-based revenues over a 20-year period. The OFTO does not have exposure to construction risk, electricity production or power price risk. HICL has also partnered with Diamond Transmission Corporation Limited to participate in phase one of Tender Round 5, which comprises three further bids for OFTO assets.
The consideration for HICL's 50% share of the interest in Burbo Bank OFTO is expected to be up to £13m. Completion of the acquisition is expected in early 2018.