In Bulgaria, Kaliakra Wind Power AD (KWP), owned by Japan's Mitsubishi Heavy Industries (MHI), a wind turbine manufacturer, and INOS, a Bulgarian construction firm -- has secured a loan agreement for up to EUR 37 million to finance the construction and operation of its 35 MW Kaliakra wind farm. The project is registered under the Kyoto Protocol's Joint Implementation (JI) program, so will earn extra income from sale of carbon emission credits. It will be built using Mitsubishi 1 MW wind turbines and the power will be sold to Bulgaria's state owned electric utility, Nationalna Electricheska Kompania EAD, under a 12-year power purchase agreement. Financing is being supplied by the Japan Bank for International Cooperation (JBIC) and Mizuho Corporate Bank Ltd. According to international law firm Linklaters, which advised JBIC and Mizuho on the deal, it is a "landmark transaction for Bulgaria" as the project is the first wind farm to reach financial close in the country. "Interestingly, this is the first full-scale overseas independent power production project that Mitsubishi Heavy Industries has undertaken as a sponsor and is therefore expected to serve as a foothold for entering the European wind power generation market," says Linklaters Clive Ransome. The company's John Pickett adds that it is the first JI wind project conducted by a Japanese company. The carbon credits generated from the wind farm will be purchased by Japan Carbon Finance to offset the country's CO2 emissions. "The sales proceeds will be added to project cash flows," says Pickett.