IFC, a member of the World Bank Group, and EBRD are helping Serbia boost its renewable energy production and improve its energy mix by providing a €215 million lending package to a joint venture developing a 158-megawatt wind farm, the largest in the Western Balkans.
The €300 million Cibuk 1 wind farm will cover 37 square kilometres in the northern Serbian province of Vojvodina. Part of the Vetroelektrane Balkana project, it is a 60:40 partnership between Abu Dhabi Future Company Masdar, from the United Arab Emirates, and Cibuk Wind Holding, a subsidiary of US-based developer Continental Wind Partners.
IFC’s €107.7 million financing package comprises a direct €52.7 million senior loan, a €36.7 million loan provided through its Managed Co-Lending Portfolio Program and a €18.3 million B loan under IFC’s syndication umbrella. At the same time, the EBRD is providing a €107.7 million syndicated loan under an A/B loan structure
The project will comprise 57 wind turbines supplied by General Electric and is expected to improve electricity for some 113,000 homes and businesses. The Cibuk 1 wind farm is due for completion by early 2019.
‘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 and positions Serbia at the forefront of Europe’s fastest growing alternative energy sector,’ said Mohamed Al Ramahi, CEO of Masdar. ‘We are proud to have this opportunity to contribute our expertise and experience acquired over the last 11 years to the diversification of Serbia’s energy mix, working alongside our joint-venture partners,’ he added.
With 70 per cent of its electricity generation stemming from older coal-fired plants, Serbia is among the largest greenhouse gas emitters per capita in Europe. The project will help diversify Serbia’s aged and highly pollutant generation mix, and reduce an estimated 370,000 tons of carbon dioxide per year.
Read more about this planned loan on: 4-traders.