Ben Lomond wind project "not affected" by woes of developer

Glen Innes Examiner
Thursday 6/3/2008 Page: 6

THE company behind a $300 million windfarm development at Ben Lomond insists plans for the project will proceed, despite troubles which has seen its share price plummet and the resignation on Monday of its founder as chairman and two other directors.

Allco Finance Group, which manages infrastructure including rail, aircraft and power, is intending to lodge a development application for the windfarm, which will have up to 100 towers standing 124m high, to State Planning Minister Frank Sartor by the end of next week "at the latest", according to Allco Wind Energy technical director Bernhard Voll.

However investor nervousness about its ability to manager debt - estimated to be more than Million - has forced Allco founder David Coe to seek a `white knight' to save the company. "For us it is business as usual," Mr Voll said. "Allco has announced that it may be divesting its infrastructure division.

If there is a change of ownership in the project we will advise at the time, but this will not affect the project," he said. Mr Voll said two community consultation days - at Ben Lomond in December and Glencoe in February - showed there was "overwhelming support" for the project, though he acknowledged concerns were expressed at the Glencoe meeting about the visual and noise impact of the turbines. "These concerns have been reflected in the development application, along with the strong support from the Ben Lomond community," he said.

The Ben Lomond project covers an area around 15sqkm and involves 12 landholders. The turbines will run along several ridges from Ben Lomond, as far north as Grahams Valley and east of the New England Highway. If it proceeds it will be the second largest cluster of wind turbines in the state. Mr Voll said he assumed it would take three to six months for Minister Sartor to approve the project. "We hope it will be quicker, and will push for it to be approved as soon as possible," he said.

According to an analysis of Allco's accounts by the Sydney Morning Herald and published at the weekend, the company's listed funds hold more than $7.8billion in debts, including $1.5billion that must be refinanced this year. Much of this current debt must be refinanced by June 30.

It has also been reported that a deal by Allco and superannuation fund Industry Funds Manager to buy 29 power stations in the United States is also threatened by the state of Allco's finances. The company's share price has down another 13c to 52c yesterday, after tumbling from a high of more than $10.00 less than a year ago.