Nordic financing behind acquisition of 24 MW OU Viru Nigula Tuulepark project
1 July 2005
Nordic Environment Finance Corporation (NEFCO), based in Helsinki, says it will provide capital to Norway's Vardar Eurus, in which it has a 30% equity holding, to help fund the acquisition of the 24 MW OU Viru Nigula Tuulepark (OVNT) wind farm project in Estonia. A preliminary decision to proceed with the acquisition -- which is to require EUR 25.4 million in new capital -- was taken on June 1, says Vardar Eurus, which hoped to complete the transaction last month. The project management company for OVNT has a concession to build eight turbines at Nigula, which it has ordered from domestic wind turbine manufacturer WinWind. The contract includes all civil works and electrical installations for the 3 MW machines, to be installed by July 2006. Johannes Rauboti of Vardar Gruppen says the company is negotiating a power purchase agreement with state utility Eesti Energia and hopes to secure a price for the electricity of EUR 0.0552/kWh up to 2015. NEFCO says it wants to become a principal player in funding Vardar Eurus's wind projects in the Baltic states and in north-western Russia. "We envisage having a broad and good cooperation with Vardar in future years," says NEFCO's Solveig Nordstroem. NEFCO is a Nordic fund that specialises in taking minority positions in regional environmental projects. Vardar Eurus is currently building the last of eight Nordex turbines at the 18.4 MW Pakri Tuulepark, a Kyoto carbon credit project.
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