Copenhagen Infrastructure Partners (CIP) has reached financial close on the 589MW Changfang and Xidao project off the coast of Changhua County, Taiwan.
The $3bn project complex will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions as well as six export credit agencies.
Japanese Bank Mitsubishi UFJ Financial Group, acted as financial adviser during the funding of the project, while Taipei based CTBC was the local financial adviser for the project’s debt financing, CIP said.
CIP said financial close marks the start of construction work at the project, which will be led by Copenhagen Offshore Partners.
The project will have highest local content of any in the Asia-Pacific region to date.
The production of jacket foundations, pin-piles, the onshore substation, transport and key transport and installation contracts will all be localised, CIP said.
Over 15 components for each of the project’s 62 9.5MW turbines will also be built locally.
“Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will once commercial operation start provide clean energy to more than 600,000 households in Taiwan,” CIP partner Michael Hannibal said.
CIP acquired the project in 2017, around one year before it secured a grid allocation.
“This project, besides being a remarkable project in Taiwan where it marks the continuation of the offshore wind build out, is part of leading the way for the complete APAC region going into offshore wind” CIP’s chairman for Asia Pacific Anders Eldrup said.