Construction/Building — July 2, 2009

SNC-Lavalin invests in New York City natural gas power plant

    MONTREAL, July 2, 2009 /CNW Telbec/ - SNC-Lavalin announced today that
its wholly owned subsidiary, SNC-Lavalin Generation Inc., has signed an
agreement to invest approximately US$70 million for a 20% interest in Astoria
Energy II to develop, own and operate a new natural gas power plant in greater
New York City. Financing for over US$1 billion has just been closed with 13
international financial institutions jointly led by Natixis, WestLB AG, Export
Development Canada, Calyon, Societe Generale Americas Securities, Bank of
Tokyo-Mitsubishi UFJ and Union Bank, NA.
    In July last year, Astoria Energy II was awarded a 20-year tolling
agreement by the New York Power Authority ("NYPA"), a New York State public
authority, for the supply of energy and capacity of an approximately 550 MW
combined cycle thermal power plant at the Astoria site in New York.
Construction has begun and is expected to be completed by summer 2011. Once
completed, the new facility will provide electrical power for NYPA customers.
    SNC-Lavalin Constructors Inc., another SNC-Lavalin wholly-owned
subsidiary, is the engineering, procurement and construction manager (EPCM) of
the facility.
    "We are pleased with this investment, and with the 20-year power purchase
agreement with a client as prestigious as NYPA," said Gilles Laramée,
Executive Vice-President and Chief Financial Officer, SNC-Lavalin Group Inc.
"This investment adds to the value of our portfolio of infrastructure
concession investments."
    SNC-Lavalin Generation Inc's equity partners in Astoria Energy II are:
SUEZ Energy Astoria II, LLC, a subsidiary of GDF SUEZ; EIF Astoria IV, LLC;
and JEMB Astoria II, LLC.

    SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and
construction companies in the world, a major player in the ownership of
infrastructure, and in operations and maintenance services. The SNC-Lavalin
companies have offices across Canada and in 35 other countries around the
world, and are currently working in some 100 countries. www.snclavalin.com

For further information: Media: Gillian MacCormack, Vice-President,
Global Public Relations, (514) 393-8000, ext. 7354,
gillian.maccormack@snclavalin.com; Investors: Denis Jasmin, Vice-President,
Investor Relations, (514) 393-8000, ext. 7553, denis.jasmin@snclavalin.com

Print | Email