* Construction on project to start by January 2010
* Says completed purchase of project paying C$52.5 mln
* Power to be sold to BC Hydro (Adds comments from GE EFS, background, changes dateline)
NEW YORK, Dec 11 (Reuters) - GE Energy Financial Services and Plutonic Power Corp (PCC.TO) will restart construction of a 300-megawatt wind power farm in British Columbia, after a court approved the companies' purchase of the project.
GE Energy Financial Services, a unit of General Electric Co (GE.N), and hydroelectric company Plutonic together paid C$52.5 million to bankrupt EarthFirst Canada Inc (EF.TO) for the planned Dokie Wind farm, which would be the largest in the Canadian province.
Development of new renewable projects had slowed in the past year because of the financial crisis that has roiled the banking industry, but the sector has shown signs of rebounding with the economic recovery of the past few months.
Still, the project required extensive preparation before it was put to investors, according to Mark Tonner, managing director for Canada at GE Energy Financial Services.
"It's probably the most thorough, complete project that would have been delivered to them in this space," Tonner told Reuters. "There is no variable left that hasn't been addressed and buttoned down."
Manulife Financial Corp (MFC.TO) led a syndicate that provided C$175 million in fixed-rate non-recourse debt for a 20-year term, and power from the project will be sold to BC Hydro under a 25-year purchase agreement.
The first phase of the project, which will use wind turbines built by Vestas Wind Systems A/S (VWS.CO), will have the capacity to generate 144 megawatts and is expected to reach commercial operation by early 2011.
Energy Financial Services is eyeing more growth in British Columbia and Ontario, Tonner said; and although winning financial backing remains a challenge, the Dokie project could lend some confidence to the market.
"Those projects and those developers who are solid -- have executed, have good commercial terms -- will find ways," he said.
The Dokie Wind project, located on the Dokie Ridge in the foothills of the Rocky Mountains, is the first wind energy investment in Canada for the partners, who are also developing the 196-megawatt East Toba River and Montrose Creek hydroelectric project.
They have further proposed building two other hydroelectric projects, the 166-megawatt Upper Toba Valley and 1,027-megawatt Bute Inlet Project.
Shares of Plutonic Power were up 1 Canadian cent at C$2.78 in Friday trade on the Toronto Stock Exchange, while shares of GE were up 31 cents or 2 percent at $15.92 on the New York Stock Exchange. (C$1=$0.942637) (Reporting by Matt Daily, with additional reporting by Amit Kumar in Bangalore; Editing by Unnikrishnan Nair and Gerald E. McCormick)
Source: http://www.reuters.com/article/idUSBNG39576820091211
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