Sidebar: AIDEA might finance roads and bridges
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On Aug. 5 the Alaska Industrial Development and Export Authority board of directors approved Resolution No. G20-24, a memorandum of understanding with Oil Search Alaska to investigate the potential of the authority financing surface infrastructure for the $6.5 billion Pikka project, including access roads, gravel pads and bridges.
Company Vice President Joe Balash said in a presentation to the board that Oil Search sees a financing deal being similar to AIDEA’s agreement for the DeLong Mountain Transportation System with the Red Dog mine in Northwest Alaska.
The Pikka development will ultimately include 26 miles of gravel roads, approximately 70 acres of gravel pads and 120 miles-plus of pipelines, excluding those involved in the seawater treatment plan project.
AIDEA would issue debt to purchase the roads and bridges from Pikka (some existing and others yet to be built), entering into a long-term use agreement with an associated fee.
Oil Search would agree to maintain and operate the roads and bridges per the proposed financing option Balash presented.
The roads and bridges would be operated as non-public, industrial use with access available to other commercial users and area residents for a fee (toll).
AIDEA and Oil Search also agreed to try to complete a financing plan for approval by first quarter 2021.
Up to $225,000 for contract services with the appropriate financial analysts and other professionals will be paid from AIDEA’s Revolving Fund with reimbursement expected to be paid by Oil Search.