20 Dec 2012

APA Group (ASX:APA) and AGL Energy Limited (ASX:AGK) have today completed limited-recourse project financing of the 242 MW Diamantina Power Station (DPS) and 60 MW back-up generation capacity at Mount Isa.

APA and AGL are developing the DPS through a 50:50 jointly owned vehicle, Diamantina Power Station Pty Limited.

The total capital expenditure, including the back-up generation, is expected to cost approximately $570 million (before financing costs). APA’s equity contribution is expected to be about $100 million and will be funded from available cash and committed facilities.

The DPS is expected to become fully operational in the first half of calendar 2014.