Loyalist Township

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Amherst Island Public Road Post Windmill Construction Deficiencies

The Road Use Agreement between Windlectric and Loyalist Township expected that there would be deficiencies in the road system after the installation of the windmills.  The Road Use agreement includes a template for dealing with these deficiencies.  The Township, with the assistance of Jewell Engineering, is in communication with officials from Windlectric concerning the correction of these deficiencies.  For the purposes of the Road Use Agreement the construction period extends one year past the Commercial Operation Date which was set at the end of June.  Loyalist Township continues to follow the template as previously agreed upon. 
 
As a condition of the Road Use Agreement, Windlectric was required to provide a substantial financial security in excess of $18M  to the Township which the Township maintains for the purposes of correcting any deficiencies should Windlectric not meet the obligations of the Road Use Agreement.  These securities could be used to correct any public infrastructure deficiencies. There are conditions within the agreements regarding how these funds can be accessed and the Township has initiated these processes.
 
The status of payments between Windlectric and its contractors and suppliers is of little concern to the Township with respect to the road deficiencies although Loyalist Township believes that a timely and fair settlement of these commercial concerns are in the best interest of everyone involved.
 
Windlectric will be required to notify the public of road construction activities once these activities recommence.