Serbia-based Vetroelektrane Balkana (WEBG) has signed a 215 million euro ($253.1 million) loan deal with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) to finance the construction of the 158 megawatt (MW) Cibuk wind, one of the partners in the project, Masdar, said on Tuesday.
Vetroelektrane Balkana (WEBG), the project company behind Cibuk 1, is wholly owned by Tesla Wind - is a 60:40 partnership between the Abu Dhabi Future Company, also known as Masdar, and Cibuk Wind Holding, a subsidiary of US-based developer Continental Wind Partners, Masdar explained in a statement.
In a separate statement, IFC said that its 107.7 million euro financing package comprises a direct 52.7 million senior loan euro, a 36.7 million euro loan provided through its Managed Co-Lending Portfolio Program and a 18.3 million euro B loan under IFC’s syndication umbrella. At the same time, The EBRD is providing a 107.7 million euro syndicated loan under an A/B loan structure.
Due for completion in the first half of 2019, Cibuk 1 wind farm in the northern province of Vojvodina will be the largest utility-scale commercial wind project in Serbia and the Western Balkans. It will cover an area of 37 square kilometres and comprise 57 of GE Renewable Energy’s 2.75-120 wind turbines. The project is expected to provide electricity to an estimated 113,000 homes on delivery and displace more than 370,000 tonnes of carbon dioxide per year.
The financing of the 300 million euro wind farm also includes the B lenders - Banca Intesa, Erste Bank, UniCredit, and The Green for Growth Fund, Masdar noted.
"The development of the largest wind farm in Serbia and the Western Balkans is a pivotal moment for the expansion of renewables in Eastern Europe the region and positions Serbia at the forefront of Europe’s fastest growing alternative energy sector," Mohamed Al Ramahi, CEO of Masdar, is quoted saying on the occasion of the loan signing.
The wind farm is expected to help Serbia meet its commitment to cover 27% of domestic power needs with energy from renewable sources by 2020.
Cibuk 1 is also expected to create as many as 400 local jobs during construction while also delivering 50 kilometres of new roads.
Upon its completion, Cibuk 1 will be Masdar’s fourth wind farm in Europe.
Masdar is Abu Dhabi’s renewable energy company which works to advance the development, commercialisation and deployment of clean energy technologies and solutions.
($=0.8496 euro)
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