Viridian hires new Huntstown advisers

Utility firm Viridian has recruited new advisers in an attempt to secure investment for its north Dublin power project.

Viridian is the former electricity monopoly in Northern Ireland. It has appointed JP Morgan Securities to sell up to 50 per cent of the plant it is building at Huntstown.

Last June its former 50:50 partner, CRH, appointed Deutsche Bank to do the same job.

A new investor failed to emerge and CRH's half-stake was taken by Viridian in November. It was understood at the time that it had not ruled out selling a stake to a third party.

CRH's departure was unexpected because it had never indicated it had only a short-term interest in the project. The building materials company was believed to be frustrated at the pace of deregulation in the industry.

Huntstown Power's chief executive Mr David de Casseres yesterday declined to comment when it was suggested that a large US firm and a German utility had expressed interest in the project. The company was not working closely with any one particular party, he said.

"It's always been the case that Viridian's intention was to share the investment with another partner so it's not a case of putting it up for sale."

Mr de Casseres said the company would proceed with the project regardless of whether it secured outside investors.

While a number of large companies have walked away from the Irish power market - not least CRH - the Huntstown project is seen as attractive. Unlike a rival project backed by ePower and a US-led group Ireland Power, it has secured a supply of gas from Bord Gais Eireann and a firm connection to the National Grid.

The ESB yesterday said a power station it planned near Bilbao in the Basque country had received a positive declaration of environmental impact from the Spanish government. Construction of the £370 million (€469.9 million) plant will begin next year with commissioning in 2004.