Engie gets USD 120m for 55-MW Mongolian wind project
Wind turbines at work. Author: Nick Cross. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
Aug 24 (Renewables Now) - French energy group Engie (EPA:ENGI) has secured USD 120 million (EUR 101.7m) in loans for the construction of the 55-MW Sainshand wind park in Mongolia’s Gobi desert.
Construction, to be managed by Engie’s engineering unit Tractebel, is expected to commence this summer with the aim to commission the plant in the second half of 2018.
The financing was provided by a group of international lenders and financial institutions, Engie said on Wednesday, adding that the project will be the third privately-funded wind farm in Mongolia. The package consists of a USD-47-million loan from the European Investment Bank (EIB), the first tranche of which will be guaranteed by Denmark’s Export Credit Agency EKF, while the European Bank for Reconstruction and Development (EBRD) will extend USD 31.5 million.
The company behind the Sainshand project is Sainshand Salkhin Park LLC, a special purpose limited liability entity owned by Engie, the Investment Fund for Developing Countries (IFU), Germany-based Ferrostaal GmbH and a local partner.
The project envisages erecting 25 Vestas V110 2.2 MW wind turbines on government-owned land near Sainshand city, in the province of Dornogobi. Once up and running, the wind park will generate enough electricity to meet the demand of around 130,000 people.
The project is in line with Mongolia’s efforts to expand renewable energy capacity. Under its national power policy the Asian country aims for a renewables share in power of 20% by 2020 and of 30% by 2030.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.