June 13 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) is looking at providing a senior secured loan of up to USD 25 million (EUR 22.2m) to finance a 50-MW solar park in Mongolia.
Clean Energy Asia LLC's Tsetsii project, worth USD 120 million, is located in the Tsogttsetsii soum of Umnugovi aimag, the southern parts of the Gobi desert.
ENRD will co-finance the project alongside the Japan International Cooperation Agency (JICA). In addition, the Japanese government will allocate a USD-746,125 grant under its Japan-EBRD Cooperation Fund for the upgrade of state-owned National Transmission Power Grid (NPTG) company’s existing Tavan Tolgoi substation.
The borrower is a special purpose company, in which domestic telecommunications, property and energy conglomerate Newcom Group hold a 51% stake. The remaining 49% is owned by SB Energy Corp -- the renewables arm of Japanese telecommunications and technology major SoftBank Group Corp.
The plant will help diversify Mongolia’s coal-dependent power sector while offsetting as much as 230,000 tonnes of carbon dioxide (CO2) emissions annually.