The Asian Development Bank (ADB) will provide up to $240 million to China WindPower Group Ltd., a wind power company, to support private sector participation in wind power farms in the northern part of the People’s Republic of China (PRC).
“This represents ADB’s first multi-project financing facility for wind power,” said Hisaka
Kimura, Senior Investment Specialist in ADB’s Private Sector Operations Department. “The
project will enable ADB to provide funding for multiple small and medium sized wind farm
projects, which are often difficult for ADB or international banks to finance on a stand-alone
basis.”
ADB will provide a dual currency US dollar-renminbi loan of up to $120 million equivalent,
which will be used by the China WindPower to build and operate up to 800 megawatts (MW) of
new wind farms by 2013. The wind farms will be located mainly in Jilin Province, an area with
some of the country’s best wind resources, but where private sector investment and financing is
lagging.
ADB and China WindPower signed the loan today in Beijing. It will be financed in part
from the proceeds of ADB’s landmark CNY1.2 billion renminbi-denominated bond issued in
Hong Kong, China in October.
In addition to the dual currency loan, ADB will also provide up to $120 million for the
project through a B-loan, a lending instrument that is financed by commercial banks with ADB
acting as the lender of record.
“China WindPower’s cooperation with ADB is significant for the smooth and sustainable
development of the wind power sector in the PRC,” said Liu Shunxing, Chairman and Chief
Executive Officer of China WindPower. “We hope to further our multi-faceted cooperation with
ADB to capitalize on the PRC’s rich wind resources.”
The PRC is the world’s second largest energy consumer and is also one of the largest
producers of greenhouse gases due its high reliance on coal, resulting in pollution which
undermines sustainable growth. The government is moving swiftly to expand the use of
renewable energy resources and is scaling up plans for installed capacity of 150 gigawatts of
wind power by 2020. The overall goal is to increase renewable energy’s share of electricity
generation to 15% by 2020.
China WindPower Group Ltd. is a rapidly growing private-sector firm focused on
delivering clean energy from the PRC’s wind resources. The Group specializes in the full
project cycle of wind power, from project engineering and development to operations and
related services. As of 31 December 2010, China WindPower has 21 operating wind farms with
a total installed capacity of 1,163 MW (and equity installed capacity of 657 MW), and holds
significant development rights in Jilin and other provinces. Since 2007, the Group has been
listed on the Hong Kong Stock Exchange.
