Ohio Uranium Enrichment Project to Move Forward
The Engineering News Record reports that the owner of a $3.5 billion uranium enrichment facility project plans to proceed despite some uncertainty regarding project financing. USEC, Inc. of Maryland states that its development of the American Centrifuge project about 80 miles east of Cincinnati will continue. USEC awarded a $1 billion EPC contract to Flour Corp. in September.
USEC conceded that the current economy has increased the difficulty of obtaining private financing. Thus, it is turning to the U.S. Department of Energy for a $2 billion guaranteed loan. If its application is accepted over rival Areva, Inc., USEC will move toward its goal of beginning commercial operations in the first quarter of 2010. If it does not receive the loan guarantee it expects the completion to be delayed. USEC’s spokeswoman conceded that it was counting on receiving the guaranteed loan as a catalyst to raising the additional financing.
While this project may be on a rather unique scale, trouble with project financing is a common occurrence in this economy. Contractors should attempt to maintain an open dialogue with owners so they can reduce the risks the loss of financing may present to contractors.
To read the full article from ENR, click here.
Post a comment:
Ask the Blogger
Do you have a topic that you would like discussed in a future blog article? Please let us know. If you have a confidential question regarding a blog article, please feel free to contact the article's author directly, or let us know if you would like for someone to contact you directly.
Attorney Spotlight
C. Michael Shull, III focuses his practice on construction law and litigation. Michael's client representations range from casinos and ENR Top 400 contractors to design firms and subcontractors.