MPC Renewable Energies, a subsidiary of international investment manager MPC Capital, along with the project developer Ferrostaal, the Danish Climate Investment Fund (DCIF) and other project partners, has achieved financial closing for the Sainshand 55 MW onshore windpark in Mongolia, for USD120 million.
The lenders have agreed to provide a total project financing of USD78.5 million, which comprises the European Investment Bank (EIB) funding of USD47 million and the European Bank for Reconstruction and Development (EBRD) funding of USD31.5 million.
“This project is an important step that advances the implementation of our infrastructure strategy,” says Dr Roman Rocke, Management Board member of MPC Capital AG. “It demonstrates our group’s capability to handle innovative projects and to close in challenging environments.”
The new Sainshand windpark is a key step for reducing carbon emissions and will make a large impact on the increasing demand for power in Mongolia. Construction will start shortly and is expected to be completed before the end of next year. Sainshand is an ideal site for onshore wind energy, according to three years of wind surveys that measured the high-yield winds in this particular area of the Gobi desert. The Sainshand onshore windpark will be the largest in Mongolia, with 25 turbines and a yearly output of approximately 200 GWh clean energy.
MPC Renewable Energies GmbH along with MPC Industrial Projects GmbH form the Infrastructure Unit of MPC Capital AG. The division offers attractive investment opportunities in the infrastructure space, including renewable energies as well as conventional power, petrochemicals and other industrial assets. Recent transactions include the 172 MW windpark project ‘Âncora’ in Portugal and the 50 MWp PV plant ‘Paradise Park’ in Jamaica.