Kaliakra Wind Power AD

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Kaliakra Wind Power AD was created to develop and operate a 35MW wind farm in the Kaliakra district of the municipality of Kavarna, a city on the coast of the Black Sea, 500 kilometers east of the capital city of Sofia. Power generated by the project was to be sold to the state-owned utility Natsionalna Electricheska Kompania under a 12-year PPA. The expected tariff was about €0.09 per kWh. Project sponsors were Mitsubishi Corp (70%) and engineering company INOS-1 930%). The project was the first loan JBIC extended to a wind power project in project financing and underlying financing for structuring a Joint Implementation (JI) project under the Kyoto Mechanisms, that was expected to reduce greenhouse gas (GHG) emissions through investment and technology provided by Japanese firms. The total cost of the project was estimated to be US$63.80 million. The project reached financial closure in March 2007 with a debt/equity ratio of 78:22. Sponsors provided US$14.0 million in equity and debt of the project amounted to US$49.80 million. JBIC provided $24.90 million and the Mizuho Financial Group US$ 24.90 million.