Total Eren and Norwegian wind developer NBT have signed financing agreements for the second phase of the 250MW Syvash wind project in the Kherson region of Ukraine.
The €107.6 million deal was signed with a syndicate of development banks including Proparco, Black Sea Trade and Development Bank and Finfund.
Recently Saudi Arabian conglomerate Algihaz took a minority stake in the project, along side Total Eren.
Syvash will be located on 1300 hectares of land in the southern Kherson region of Ukraine and will be the country’s biggest renewable energy project.
The electricity generated will be sold to state-owned company Energorynok, Ukraine’s wholesale electricity market operator.
The engineering, procurement and construction contractors are PowerChina, and Nordex Group.
Construction work is expected to start in the before the summer of 2019.
Syvash’s project financing has occurred in two phases. A loan of up to €155 million was raised in January 2019 for the construction of the initial 133MW phase.
The package consists of a €75 million loan from the European Bank of Reconstruction and Development, while the Green for Growth Fund and the Netherlands Development Finance Company provided €75 million between them.
A parallel loan of €5 million was provided by the Nordic Environment Finance Corporation.
In the second phase loan of €107.6 million, Proparco provided €42.6 million, Black Sea Trade and Development Bank provided €30 million and the other lenders provided the balance.