Viking and SIC agree £40m financial bond
A £40 million bond has been agreed between the SIC and Viking Energy for the decommissioning of the 103-turbine windfarm.
The bond – originally due to be in place before construction on the windfarm began – was signed last week between the two parties and Santander, according to redacted documents seen by The Shetland Times.
It is a safeguard in case of any potential complications during the windfarm’s 25-year lifespan, to ensure cash is in place to properly decommission the site.
SIC development manager John Holden confirmed today in a letter to SSE that the planning conditions had been met.
The Shetland Times reported last week that an announcement was “imminent”.
Council chief executive Maggie Sandison said she was pleased that the bond was now in place.
She said the fee was “at a much higher value than was originally proposed at the outset of the project.”
Anti-windfarm campaigners have continually criticised both the SIC and Viking for not having the letter of credit in place before work started on the windfarm.
Save Shetland’s Ernie Ramaker blasted both last week, accusing them of having a “blatant disregard for the community”.
He said councillors had “a duty to represent the community” and that the people of Shetland “have been badly let down in this matter”.
The SIC and Viking have been approached for comment.
Ali Inkster
£40 million?
Considering the claim they are going to dismantle and remove all trace, £40 million is about 5-10% of what it will cost.
This is an insult to every Shetlander whether they were for or against this project.
Whoever agreed this paltry sum should resign or be sacked.
Martin Lee
I don’t think that reinstatement without any trace is a sensible option given that there have been commitments to improve the pre wind farm damaged areas of peat on which the wind farm is being constructed.
Removing the towers and sub stations and leaving the access roads, would leave the area in a better condition than it was before construction started.
Clearly £40 million will easily cover that, and I suspect it will also cover the cost of covering over of foundations and roads with suitable material to allow natural vegetation to cover the whole area as well.
It’s much more likely though that the wind farm will last much longer than originally planned for and the bond would be re-negotiated for a further period of time.
Ali Inkster
how much will “not more than £40 million” be worth in real terms in 25 years assuming say 3% average inflation over this time?
Robert Wishart
Peanuts.