IDB To Finance Expansion Of Wind Project In Mexico

Posted by NAW Staff on December 18, 2009 No Comments
Categories : Projects & Contracts

The Inter-American Development Bank (IDB) has approved $102 million in partial financing for two wind power projects totaling 318 MW in Oaxaca, Mexico.

The IDB Board approved a $50 million loans for the 250.5 MW Eurus wind farm currently under development by Acciona Energia Mexico, a wholly owned subsidiary of Spain's Acciona Energia SA.

Mexico's Cemex, a global producer of cement and concrete, is an equity partner in the Eurus project and will purchase all its electricity under a 20-year, self-supply power purchase agreement. Cemex expects Eurus and other self-supply projects to meet a significant percentage of the energy needs of its Mexico operations.

The IDB will also facilitate an additional loan of up to $30 million from the Clean Technology Fund of the Climate Investment Fund for the Eurus project, whose total cost will be close to $600 million. Additional long-term financing is expected to be approved for the project by other multilateral lenders, development finance institutions and commercial banks.

The IDB separately approved up to approximately $21 million for a 67.5 MW wind farm currently under development by Electrica del Valle de Mexico, S. de R.L. de C.V. (EVM), an affiliate of EDF Energies Nouvelles SA. Four subsidiaries of Wal-Mart de Mexico will purchase electricity from this project under 15-year self-supply, power purchase agreements as part of Wal-Mart's goal of using 100% renewable power in its Mexico operations.

The IDB loan, combined with credits expected from multilateral and bilateral lenders, could cover as much as $103 million of the EVM project's $190 million total cost.

Both projects have included certified emission reduction credits in their plans.

SOURCE: The Inter-American Development Bank

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