Incinerator firm hopes to raise $400 million bond

Incinerator firm hopes to raise $400 million bond
Sunday, June 07, 2009 By John Burke and Ian Kehoe
The US firm leading the consortium to build an incinerator at Poolbeg in Dublin is attempting to raise $400 million from bond investors to part-finance the project.

Covanta, a US-quoted energy firm, is heading Dublin Waste to Energy Ltd, which has been awarded the contract to build and operate the incinerator. The consortium recently assured Dublin City Council that all funding was in place for the project.

However, Covanta has struggled to secure finance for phase one of the project, and is now seeking to raise $400 million through ‘‘cash-convertible senior notes’’. It is proposing to pay investors a return of 6.5 per cent a year on their capital.


In documents filed last week with the Securities and Exchange Commission in the US, Covanta said the net proceeds of the bond issue would be used for working capital, including ‘‘funding a portion of the construction cost for a 1,700 metric energy-from waste facility in Dublin’’.

It is understood that Covanta had tried to raise bank debt, but no institution was willing to act as the primary banker to the Poolbeg project, due to the lack of liquidity on the international credit markets.

However, a number of lenders have informed the consortium that they may consider part-financing latter aspects of the project. The planned incinerator is a central element of the country’s waste management strategy. If completed as planned, it will burn 600,000 tonnes of waste a year, creating electricity for 50, 000 homes and hot water heating for a further 60,000 households. However, there has been opposition both to the Poolbeg project, and to incineration in general in Ireland, with a number of projects beset by delays.

Last week, John Gormley, the Green Party Minister for the Environment, is sued a circular which stated that he would introduce a levy to be borne by companies incinerating waste and any body selling waste for incineration.

Gormley has also instructed the director general of the Environmental Protection Agency (EPA),Dr Mary Kelly, and all council managers nationwide, that they must in future ‘‘refrain from exercising their powers in such a way as to direct waste to landfill or incineration’’.

Gormley told the EPA and the council heads that he was initiating a Strategic Environmental Assessment (SEA), instructing them that government policy had taken decisive steps to encourage recycling and discourage incineration.

Covanta - List of Subsidiaries

SCHEDULE 4-A

List of Subsidiaries

8309 Tujunga Avenue Corp.

AC LINES LLC

American Commercial Lines Holdings LLC

Burney Mountain Power

Capital Compost & Waste Reduction Services, LLC

Central Valley Biomass Holdings, LLC

Central Valley Fuels Management Inc.

Covanta Alexandria / Arlington, Inc.

Covanta ARC Company

Covanta ARC Holdings, LLC

Covanta ARC LLC

Covanta B-3, LLC

Covanta Babylon, Inc.

Covanta Berkshire Holdings, Inc.

Covanta Berkshire Operations, Inc.

Covanta Bessemer, Inc.

Covanta Biofuels, Inc.

Covanta Bristol, Inc.

Covanta Capital District II LLC

Covanta Capital District LLC

Covanta Capital District, L.P

Covanta Company of SEMASS, L.P.

---

Covanta Connecticut (S.E.), LLC

Covanta Delano, Inc.

Covanta Delaware Valley II, LLC

Covanta Delaware Valley LLC

Covanta Delaware Valley, L.P.

Covanta Development Company LLC

Covanta Energy Americas, Inc.

Covanta Energy Asia, Inc.

Covanta Energy Corporation

Covanta Energy Europe, Inc

Covanta Energy Group, Inc.

Covanta Energy Resource Corp.

Covanta Energy Services, Inc.

Covanta Engineering Services, Inc.

Covanta Essex Company

Covanta Essex II, LLC

Covanta Essex LLC

Covanta Fairfax, Inc.

Covanta Frederick/Carroll, Inc.

Covanta Funds Administration, Inc.

Covanta Hampton Roads LLC

Covanta Harford, Inc.

Covanta Harrisburg, Inc.

Covanta Haverhill Associates

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Covanta Haverhill Properties, Inc.

Covanta Haverhill, Inc.

Covanta Hawaii Energy LLC

Covanta Hempstead Company

Covanta Hempstead II, LLC

Covanta Hempstead LLC

Covanta Hennepin Energy Resource Co., Limited Partnership

Covanta Hillsborough, Inc.

Covanta Holding Corporation

Covanta Honolulu Resource Recovery Venture

Covanta Huntington Limited Partnershiip

Covanta Huntington Resource Recovery One Corp.

Covanta Huntington Resource Recovery Seven Corp.

Covanta Huntsville, Inc.

Covanta Hydro Operations West, Inc.

Covanta Indianapolis, Inc.

Covanta Insurance Holdings Corporation

Covanta Kent, Inc.

Covanta Lake Holding Corp.

Covanta Lake II, Inc.

Covanta Lancaster, Inc.

Covanta Lee, Inc.

Covanta Long Island, Inc.

Covanta Maine, LLC

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Covanta Marion Land Corp.

Covanta Marion, Inc.

Covanta Mendota Holdings, Inc.

Covanta Mendota, L.P.

Covanta Mid-Conn, Inc.

Covanta Montgomery, Inc.

Covanta Niagara II, LLC

Covanta Niagara LLC

Covanta Niagara, L.P.

Covanta Oahu Waste Energy Recovery, Inc.

Covanta Omega Lease, Inc.

Covanta Onondaga Five Corp.

Covanta Onondaga Four Corp.

Covanta Onondaga Limited Partnership

Covanta Onondaga Operations, Inc.

Covanta Onondaga Three Corp.

Covanta Onondaga Two Corp.

Covanta Onondaga, Inc.

Covanta Operations of SEMASS II, LLC

Covanta Operations of SEMASS LLC

Covanta Operations of Union LLC

Covanta OPW Associates, Inc.

Covanta OPWH, Inc.

Covanta Otay 3 Company

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Covanta Pasco, Inc.

Covanta Pinellas, Inc.

Covanta Pittsfield, LLC

Covanta Power Development of Mauritius, Inc.

Covanta Power Development, Inc.

Covanta Power International Holdings, Inc.

Covanta Power Pacific, Inc.

Covanta Power Plant Operations

Covanta Projects of Hawaii, Inc.

Covanta Projects of Wallingford, L.P.

Covanta Projects, Inc.

Covanta Ref-Fuel Finance LLC

Covanta Ref-Fuel Holdings LLC

Covanta Ref-Fuel II LLC

Covanta Ref-Fuel LLC

Covanta Ref-Fuel Management II, LLC

Covanta Ref-Fuel Management LLC

Covanta Renewable Fuels LLC

Covanta Research & Technology, LLC

Covanta RRS Holdings, Inc.

Covanta SBR Associates

Covanta SECONN LLC

Covanta Secure Services, LLC

Covanta SEMASS II, LLC

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Covanta SEMASS LLC

Covanta SEMASS, L.P.

Covanta Southeastern Connecticut Company

Covanta Southeastern Connecticut, L.P.

Covanta Springfield, LLC

Covanta Stanislaus, Inc.

Covanta Systems, LLC

Covanta Union, Inc.

Covanta Wallingford Associates, Inc.

Covanta Warren Energy Resource Co., Limited Partnership

Covanta Warren Holdings I, Inc.

Covanta Warren Holdings II, Inc.

Covanta Waste to Energy of Italy, Inc.

Covanta Waste to Energy, LLC

Covanta Water Holdings, Inc.

Covanta Water Systems, Inc.

Covanta WBH, LLC

Danielson Indemnity Company

Danielson Insurance Company

Danielson National Insurance Company

Danielson Reinsurance Corporation

DSS Environmental, Inc.

Generating Resource Recovery Partners L.P.

Haverhill Power, LLC

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Koma Kulshan Associates L.P.

Kramer Capital Consultants, Inc.

LMI, Inc.

Michigan Waste Energy, Inc.

Mount Kisco Transfer Station, Inc.

MSW Energy Erie LLC

MSW Energy Finance Co. II, Inc.

MSW Energy Finance Co., Inc.

MSW Energy Holdings II LLC

MSW Energy Holdings LLC

MSW Energy Hudson LLC

MSW I Sub, LLC

Mt. Lassen Power

NAICC Insurance Services

National American Insurance Company of California

New Covanta Lake Holding LLC

OPI Quezon, LLC

Pacific Energy Operating Group, L.P.

Pacific Energy Resources Incorporated

Pacific Hydropower Company

Pacific Oroville Power, Inc.

Pacific Recovery Corporation

Pacific Wood Fuels Company

Pacific-Ultrapower Chinese Station

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Peabody Monofill Associates, Inc.

Penstock Power Company

Recycling Industries Transfer Station, LLC

SEMASS Partnership

South Fork II Associates Limited Partnership

Thermendota, Inc.

TransRiver II, LLC

TransRiver LLC

TransRiver Canada Incorporated

TransRiver Marketing Company, L.P.

TransRiver Philadelphia LLC

TransRiver Portsmouth LLC

TransRiver Transfer Systems LLC

TransRiver Waste LLC

UAH Groveville Hydro Associates

UAH Management Corp

Valor Insurance Company, Incorporated

Ambiente 2000 S.R.L.

Bal-Sam India Holdings Limited

Chengdu Jiuniang Environmental Energy Co. Ltd.

Chongqing Sanfeng Covanta Environmental Industry Co., Ltd.

Covanta Bangladesh Operating Limited

Covanta Cayman (Rojana) Limited

Covanta Cayman (Sahacogen) Limited

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Covanta Energy (Ireland) Limited

Covanta Energy (Thailand) Limited

Covanta Energy (UK) Limited

Covanta Energy Asia Holdings Limited

Covanta Energy Asia Pacific Limited

Covanta Energy China (Delta) Limited

Covanta Energy China (Gamma) Limited

Covanta Energy India (Balaji) Limited

Covanta Energy India (CBM) Limited

Covanta Energy India (Samalpatti) Limited

Covanta Energy India Private Limited

Covanta Energy International Investments Limited

Covanta Energy Limited

Covanta Energy Philippine Holdings, Inc.

Covanta Europe Engineering Limited

Covanta Europe Holdings S.a.r.l.

Covanta Europe Operations Limited

Covanta Five Limited

Covanta Four Limited

Covanta Holding Limited

Covanta India Operating Private Limited

Covanta Italy Holding, S.r.l.

Covanta Italy I S.r.l.

Covanta Italy II S.r.l.

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Covanta Madurai Operating Private Limited

Covanta Mauritius O&M Ltd.

Covanta One Limited

Covanta Philippines Operating, Inc.

Covanta Samalpatti Operating Private Limited

Covanta Three Limited

Covanta Two Limited

Covanta Waste to Energy Asia Investments

Covanta Waste to Energy Asia Limited

Covanta Waste to Energy Asia Ltd

Dublin Waste to Energy (Holdings) Limited

Dublin Waste to Energy Limited

Edison (Bataan) Cogeneration Corporation

Enereruope Holdings III, B.V.

GOA Holdings Limited

Guangzhou Development Covanta Environmental Industry Co., Ltd.

Hidro Operaciones Don Pedro S.A.

Madurai Power Corporation Pvt. Ltd.

NEPC Consortium Power Ltd.

Ogden Energy (Gulf) Limited

Ogden Energy India (Bakreshwar) Limited

Ogden Power Development — Cayman, Inc.

Ogden Taiwan Investments Limited

OLMEC Insurance Ltd.

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P.H. Don Pedro

P.H. Rio Volcan

Power Operations and Maintenance Limited

Prima S.r.l.

Quezon Power (Philippines) Limited

Quezon Power, Inc.

Samalpatti Power Company Private Limited

Taixing Covanta Yanjiang Cogeneration Company Limited

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SCHEDULE 4-B

List of Significant Subsidiaries

Covanta ARC Holdings, LLC

Covanta ARC LLC

Covanta Energy Corporation

Covanta Essex Company

Covanta Essex LLC

Covanta Hempstead Company

Covanta Hempstead LLC

Covanta RRS Holdings, Inc.

Covanta SEMASS, L.P.

MSW Energy Hudson LLC

Quezon Power, Inc.

Covanta Power International Holdings, Inc.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6624272-301748-466307&type=sect&dcn=0000950137-09-004066

Green-FF Incinerator Cuts Pension Costs.

Save On Your Pension Contributions.

You can now bargain with the banks for a lower cost pension plan, thanks to Green-FF.

Just vote Green-FF for the Poolbeg Waste-to-Toxins Incinerator so you can worry less about your pension - the incinerator will shorten your pension and your kids' lives by up to two years. Mr Dick Roach more or less confirmed that by dismissing a 2007 Dail question from a Dublin TD. Even experts agree.

NAMA To Rescue Uneconomic Incinerator?

Perhap's Ireland's National Asset Management Agency (NAMA) can pitch in some of our €90,000,000,000 to help out Covanta, along with the €450 Million NAMA will burn to rescue the IGB speculators down the road in Poolbeg.

Green-FF states the incinerator is now uneconomic - as promised by John The Traitor Gormley. So no doubt Green-FF will next claim NAMA must save the 'uneconomic' waste-to-toxins incinerator. Fair is fair.

Green-FF Desperate Untruths on Incinerator?

Green-FF looks right, looks desperate.

There are Local and European elections coming up in June 2009. Did the Green Party publish a truth behind a lie behind the untruth behind a mistake behind the spin?

On Sunday, May 17, 2009, the Green-FF's leafleted houses with the spin that the Poolbeg incinerator would "collapse" because Covanta could not get finance.

However on Monday, MAY 18, 2009, the Wall Street Journal (WSJ) reported Covanta was selling at least $300 million in 5-year cash-convertible notes to private entities for incinerator construction in Dublin.

The WSJ states:

"Covanta said proceeds from the offering, which will be private, could be used for items including plant construction in Dublin along with potential investments or acquisitions."

Green-FF omitted this Covanta statement from The Sunday Tribune of May 17, 2009:

A statement issued to The Sunday Business Post on behalf of Covanta Europe president Scott Whitney said the company was

‘‘in the final stages of pre-construction activity, the financing to construct the facility is available and we expect to commence construction when the remaining statutory approvals have been received’’.

And Green-FF also omitted this Dublin City Council statement from The Sunday Tribune:

Seamus Lyons, Dublin Assistant City Manager, who heads the council’s environmental and engineering department, said that Dublin City Council was ‘‘satisfied that Covanta has finance in place’’.

Tiny Air Pollution Particles Cause Cancer

-----------------------------
REF:

http://online.wsj.com/article/BT-CO-20090518-703848.html
Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=news-qqqid=41818-qqqx=1.asp

EU Wonders Were Poolbeg Incinerator Hearings a Sham?

The Green-FF government does not care the Poolbeg Incinerator hearings were a political sham - they themselves and their €200,000 pensions come first. To divert the public during the elections perhaps it'd be a great idea to issue a report on 60 years of child abuse wherein the judiciary allegedly frustrated police investigations and the Pope threatened President Bertie (Parish of Boston-not-Berlin, says hello).

Guess why Ireland is ranked worse than China and Ghana for legal corruption by the World Bank. Is Poolbeg a good location to research legal corruption?

The Poolbeg Incinerator Hearings at Board Pleanala and at EPA-Ireland were apparently decided by unseen politicians above the heads of the professionals in those organisations. The boards appear to be loaded with either incinerator-industry-insiders or political-crony appointees. A fewyears ago John Gormley condemned EPA's director but now he's in charge he has done nothing about her.

Good science and the public good appear to have been ignored by the bosses of the regulators. Political cronyism at the banks, the alleged financial regulators and the building-industry have near-bankrupted the economy. Political cronyism operating on or in the other alleged regulators, EPA and Bord Pleanala, combined with an offshore-based waste-to-toxins incineration industry may shorten lives by up to two years across Dublin.

In the following diplomatic language the EU Commission seems to say the Poolbeg Incinerator Hearings were a sham:

‘Because of weaknesses in Irish legislation
splitting decision-making between planning authorities
and the
Environmental Protection Agency,
there are risks that outcomes required by the
EU directive will not always be achieved.’

With elections coming up Green-FF is spinning that the offshore operators have no money. Covanta-Poolbeg is based in Luxembourg. There are lots of offshored-banks in Luxembourg, almost nothing else. And Covanta has lots of money.

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EU takes legal action over planned Poolbeg incinerator (19/3/09)

http://eurolinknews.com/2009/03/19/eu-takes-legal-action-over-planned-poolbeg-incinerator-19309/.

March 19, 2009 eurolinknews.com

The proposed waste incinerator at Poolbeg is the subject of fresh controversy this week after it emerged that the EU has lodged legal proceedings against the Irish government over its handling of incinerator projects. EU Environment Commissioner Stavros Dimas has confirmed that Ireland was referred to the European Court of Justice in the last few weeks after it failed to respond to a final warning over alleged breaches of EU law. A statement issued by the Commission highlights concerns that all the environmental implications of the Poolbeg plant may not have been considered before it was approved in 2007. It reads, ‘Because of weaknesses in Irish legislation splitting decision-making between planning authorities and the Environmental Protection Agency, there are risks that outcomes required by the EU directive will not always be achieved.’

It’s the latest in a saga of legal controversy dogging the planned €266 thermal treatment facility, which has nonetheless managed to secure a licence to burn 600,000 tonnes of household waste a year. But this international case could be particularly embarrassing for Environment Minister John Gormley, who has previously been vocal in his opposition to Poolbeg. The Minister has come under fire from Dublin MEP Proinsias De Rossa for failing to respond to the EU’s written warning earlier. ‘This is yet another unnecessary, costly legal battle; it’s a sad state of affairs that Europe should have to take legal action against a Green Party Minister to ensure that all the implications of incineration are considered,’ he said.

http://eurolinknews.com/2009/03/19/eu-takes-legal-action-over-planned-poolbeg-incinerator-19309/

Six Degrees of Separation Or Less, at Poolbeg

€450,000,000

€90,000,000,000
€400,000,000,000
A Colony Again.

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