EIB to lend EUR 45m for 54-MW Mongolian wind farm

The European Investment Bank (EIB) has signed a financing agreement to back the construction of the 54-MW Sainshand wind park in Mongolia’s Gobi desert.

According to the lender’s website, the amount of the approved financing is EUR 45 million (USD 53.1m), while the total cost of the scheme is estimated at EUR 95 million. The company behind the project is Sainshand Salkhin Park LLC, a special purpose limited liability entity owned by French energy major Engie (EPA:ENGI), the IFU, Germany-based Ferrostaal GmbH and a local partner.

The project envisages erecting 25 wind turbines on government-owned land to the southeast of Sainshand city, in the province of Dornogobi. The developers have already secured a power purchase agreement (PPA) and obtained all needed licences, Ferrostaal says. Once operational, the wind farm is expected to generate about 190,000 MWh of electricity per year.

Under its national power policy Mongolia aims for a renewables share of 20% by 2020 and of 30% by 2030.

(EUR 1.0 = USD 1.179)

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