China Development Bank funds Sinovel project in Brazil

CHINA: China Development Bank (CDB) signed a loan agreement with Brazilian energy company Desenvix for the construction of a 34.5MW wind farm.

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CDB did not elaborate on the exact amount of the loan. However, it is the first time the CDB has granted a loan for a wind project in Latin America.

In September 2011, Sinovel signed an agreement with Desenvix to supply 23 1.5MW turbines for the project. Sinovel said it had delivered the 23 turbines in March this year. To date, four turbines have been connected to the grid. The company estimates all the turbines will be connected to the grid in September.

The loan follows Desenvix's decision to withdraw its lawsuit against Sinovel. The challenge was filed in a Brazilian local court for alleged infringement of AMSC intellectual properties. Desenvix repealed the lawsuit as Emerson Electric confirmed it rather than AMSC supplied the frequency converters to Sinovel for the 1.5MW turbines.

Recently, Sinovel saw its net profits plunge 96% in the first six months, year-on-year, to the value of CNY 24.7 million.

Sinovel said it would exert all efforts to expand its overseas market share. In the first six months, Sinovel sold CNY 28 million of wind turbines to overseas market. Ths accounted for 9% of the total sales, compared with less than 1% in 2011.


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