CIB Lending $108.3M for New Wind Project in Gespe'gewa'gi
The Canada Infrastructure Bank (CIB) is investing $108.3 million, including its first Indigenous equity loan in Quebec, to support construction of the 102.2-megawatt Mesgi'g Ugju's'n 2 Wind Farm (MU2), located in Gespe'gewa'gi, also known as the Gaspésie–Îles-de-la-Madeleine region. The project is a partnership between Mi'gmawei Mawiomi Business Corporation (MMBC), representing the Gesgapegiag, Gespeg and Listuguj Mi'gmaq communities and Innergex Renewable Energy Inc. (TSX:INE).
The CIB's $15.8 million equity loan improves the economic viability of MMBC's participation in the project, and the remaining $92.5 million is dedicated to the project construction. The project was the only one from two provincial tenders for 780-megawatt blocks of renewable energy to include an Indigenous community partner as a sponsor.
Additional financing to the project includes a $163.9 million green loan, a $41 million construction bridge loan and a letter of credit facility from CIBC, Desjardins and National Bank of Canada.
The MU2 project is expected to generate approximately 150 direct construction jobs, with a commitment to hire at least 30% of the workforce from local Mi'gmaq communities. Revenues will be reinvested into community initiatives.
The wind farm will be located on the Mi'gmaq traditional territory of Gespe'gewa'gi, near Rivière-Nouvelle. It will be developed adjacent to the 150-megawatt Mesgi'g Ugju's'n Wind Farm (MU1), also a 50/50 partnership between the Mi'gmaq communities and Innergex.
MU2 will feature Nordex turbines, generating enough electricity to power 20,000 Quebec homes through a 30-year power purchase agreement with Hydro-Quebec. The project is expected to cut emissions by 153,053 tonnes annually and supports the public utility's Electricity Supply Plan, which forecasted a 12% rise in demand between 2019 and 2029.
Operations are expected to begin in late 2026.
Mi'gmawei Mawiomi Business Corporation | http://mmcorporation.ca/
Innergex Renewable Energy I innergex.com
