Wind Works Power gets EUR 10m financing for 4-MW wind project in Germany

(ADPnews) - Dec 6, 2010 - Canada-based Wind Works Power Corp (ETR:R5E1) said on Friday it had secured EUR 10 million (USD 13.4m) in financing for 100% of the costs on its 4-MW Burg I wind power project in eastern Germany, as it aims to begin construction in the spring of 2011.

Ad.vis Projekt GmbH has agreed to provide a 15-year loan of EUR 6.9 million, with a 4% upfront interest payment and a 3.85% annual interest. The company said it had also secured the balance of EUR 3.1 million, without providing any details on the lender. The second loan agreement is to be completed by the end of the year, subject to due diligence.

The Burg I wind projects near Magdeburg represents the first phase of a 10-MW wind farm development. Output from the facility will be sold under a 20-year power purchase agreement under the local feed-in tariffs. Total costs on the first phase arrive at EUR 10 million.

At the same time, Wind Works announced it would keep its focus on projects in Germany, Canada's Ontario and the US, so it had given up purchase plans for the Honelles project in Belgium and the Ecsed project in Hungary.

(EUR 1 = USD 1.338)

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