Copenhagen Infrastructure Partners (CIP), a fund management company focused on energy infrastructure, says it has closed financing on the 589 MW offshore wind project Changfang and Xidao off the coast of Changhua County, Taiwan.
The project has contracted experienced international and local contractors under eight key construction agreements. The project received approval of its local content plan in December 2019 by the Taiwan government and is the offshore wind project with the highest localization percentage in the Asia Pacific region. The Changfang and Xidao project will localize the jacket foundation, pin piles, onshore substation, transport and installation contracts and more than 15 wind turbine components. The wind turbines will be supplied by MHI Vestas, which will deliver 62 9.5-MW turbines.
The 589 MW offshore wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions – including CI II, Taiwan Life Insurance and TransGlobe Life Insurance – as well as six export credit agencies. The total project financing raised from the banks and financial institutions amounts to approximately $3 billion.
CIP acquired the Changfang and Xidao project in 2017, and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Co. The Changfang and Xidao project is owned by CI II and CI III and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance and TransGlobe Life Insurance.
CIP will lead the project through its construction phase, with an expected start of commercial operations in the first quarter of 2024.
MUFG acted as the financial advisor and CTBC as the local financial advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.
Photo: CIP reaches financial close on 589 MW offshore wind project, Changfang and Xidao, off the coast of Changhua County, Taiwan