The European Bank for Reconstruction and Development (EBRD) said on Monday it is considering lending up to 59 million euro ($76 million) for the construction of a 54 megawatt wind farm in Romania's southeastern county of Galati.
The project, which will be located near the Smardan village, will support Romania in increasing its renewable energy capacity to meet EU green energy targets, the bank said in a statement.
The wind farm will be financed through an A/B loan structure. The total cost of the project is 84.2 million euro.
The project will help increase the share of renewable energy as a proportion of Romania's total electricity output to 38% by 2020 from a level of 5.0% in 2012. Furthermore, the loan will strengthen the project finance market in a country that has historically relied to a large extent on corporate finance structures to develop power assets, the EBRD said.
The project is controlled and developed by Inveravante Inversiones Universales, S.L. through a special purpose vehicle, Smardan S.R.L., incorporated in Romania. Inveravante is a Spanish holding company present in more than 20 countries. It engages in a range of business areas, including the development of renewable energy projects and oil and gas exploration and production.
The EBRD loan is pending final review.
($ = 0.7772 euro)
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