The European Bank for Regional Development and IFC have agreed on a €215 million lending package to boost renewable energy production in Serbia.
The finance will support the development of the 158 MW Cibuk 1 onshore wind farm, which is being developed by a joint venture between Masdar and USA-based 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 due for completion in 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.
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.