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| IFC to pump $140 mn into Tanti's project |
| Abhijit Lele / Mumbai Apr 10, 2009, 00:02 IST |
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International Finance Corporation (IFC), the World Bank arm that provides funding for the private sector in developing countries, is planning to invest up to $140 million in the Tanti group’s wind energy project in Inner Mongolia, China.
The funds are to be invested in the project being set up by the Tanti group, the promoters of Suzlon Energy, and other financial investors, to develop about 550 MW over the next few years at an estimated cost of around $766 million.
Honiton Energy Caymans (HECL) is the promoter of the project. The Tanti group holds 23.4 per cent stake in HECL while Arcapita, a Bahrain-based financial institution, has 66.6 per cent. The remaining 10 per cent is shared by Honiton’s chief executive Paul Eveleigh and one of its founders Jin Fang Li.
IFC, in its investment proposal, said its support to the project would give more confidence to private investors to finance wind generation projects in China.
The projects would be able to draw from IFC’s power sector experience, especially in renewable energy and wind projects in developing countries.
The cost of the project for the next two phases is estimated at $160 million. The proposed IFC investments will include an equity investment worth $40 million, a loan of up to $25 million and a syndicated loan of up to $75 million.
The project is located at five sites in Inner Mongolia, China. The land being used for the project is vacant non-agrarian land. It is expected to increase the power generation capacity from renewable energy sources in China. Consequently, it would help to reduce carbon emissions from thermal power plants, while addressing the need for new generation capacity.
The Honiton Wind project involves the development and operation of a portfolio of wind energy assets in China. Till date, Honiton has obtained exclusive conditional rights to develop wind energy farms in China’s Inner Mongolia Autonomous Region of about 2,155 sq.km. It has the potential to produce a projected 6,200 MW of clean energy and requires investments estimated at $8 billion.
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