Tsetsii Windfarm (EBRD-47949)

Countries
  • Mongolia
Where the impacts of the investment may be experienced.
Specific Location
Tsogttsetsii soum of Umnugovi aimag
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 20, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Clean Energy Asia LLC
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 120.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 11, 2017

Disclosed by Bank Jun 10, 2016


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Project Description
A senior loan of up to USD 25 million to Clean Energy Asia LLC (the "Company") to support the development, construction and operation of the Tsetsii Wind Farm, a 50MW wind power plant to be located 542 km south from Mongolia's capital Ulaanbaatar in the Gobi desert. PROJECT OBJECTIVES The Tsetsii Wind Farm will be the second wind energy project developed in Mongolia, following the 50 MW Salkhit Wind Farm project, which the EBRD financed in 2012. The operation will contribute to reducing Mongolia's carbon intensity as well as meeting its increasing power demand. In addition, the project will also strengthen the private sector presence in the energy sector in the country. The borrower is a special purpose limited liability company incorporated in Mongolia. The Company is 51% owned by Newcom LLC, the HoldCo of a Mongolian conglomerate with activities in telecommunications, property and energy. The remaining 49% is owned by a subsidiary of SB Energy Corp., the renewable energy subsidiary of SoftBank Group Corp., the Japanese telecommunications and technology conglomerate. Newcom is the majority-owner of the Salkhit Wind Farm Project, to date the first and only windfarm and private power generator in Mongolia. TRANSITION IMPACT The transition impact stems from three factors: (i) as the second private power generation and wind farm project in Mongolia, the Project will be highly visible. Its demonstration effects will be essential in attracting new investors into the sector; (ii) power sector assets in Mongolia are almost entirely state-owned.The Project will result in a new private entrant in the Mongolian power generation sector; and
Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information
Saruul Damdinbal saruul@newcom.mn ACCOUNTABILITY MECHANISM OF EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.