DTEK has completed construction of Prymorska wind farm (Botiyeve, Zaporizhia region) with a capacity of 200 MW, an Interfax-Ukraine correspondent has reported.
DTEK CEO Maksym Tymchenko said that investment in the project reached EUR 321 million, including EUR 180 million are funds borrowed from German banks and secured by foreign export-credit agencies.
Prymorska wind farm will annually generate 700 million kWh of electricity.
The plant consists of two phases 100 MW each and has 52 wind turbines made by General Electric.
During the construction of the second phase Ukrainian contractors received orders for EUR 30 million.
DTEK was established in 2005 to manage the energy assets of the System Capital Management Group (SCM, Donetsk) of Rinat Akhmetov. The functions of strategic management of the enterprises of the group that make up the vertically integrated chain for the extraction and enrichment of coal, production and sale of electricity were delegated the holding.
Simmons & Simmons has advised Oslo-based NBT, a Norwegian wind power developer and the largest foreign investor in Ukraine, by leading the negotiations on the Engineering, Procurement and Construction (“EPC”) contracts with China Electric Power Equipment and Technology Co, Ltd. (“CET”) for the 300 MW second stage and 450 MW third stage of the Zophia Wind Park in Ukraine (“Zophia II” and “Zophia III” respectively).
Once completed, together with the 42.5 MW first stage, the Zophia Wind Park will become the largest onshore wind farm in Europe, with a total capacity of 792.5 MW – and will generate enough electricity to power the needs of approximately 340,000 households.
Simmons also advised NBT on its Preliminary Financing Arrangement Agreement, under which NBT and CET set out their intentions for financing for Zophia II and Zophia III. NBT plans to tap Chinese banks including Industrial Commercial Bank of China (“ICBC”), the Export-Import Bank of China (“Exim Bank of China”) and China Construction Bank (“CCB”) for €500 million of senior debt and arrange an additional €250 million from international banks. This promises to be a landmark Belt and Road project in respect of its combined international and Chinese financing.
The Simmons team was led by projects partner Alex Blomfield and assisted by associates Louise Mackenzie and Elizabeth Ormesher.
Joar Viken, CEO of NBT, said “Alex has been instrumental in all of NBT’s EPC negotiations in Ukraine, both for the Syvash and the Zophia projects. His outstanding work ethic, combined with his commercial savviness and ability to provide creative solutions to complex problems, have been instrumental in closing these EPC contracts. His vast knowledge regarding international project financing has been advantageous in ensuring we negotiate a bankable product. In addition, we are deeply impressed by Simmons and the assistance the supporting staff has been providing throughout the process.”
Commenting on the transaction, Alex Blomfield said: “It is a privilege to advise NBT on such a complex and important deal. NBT is an excellent developer and one of only a handful of sponsors that successfully can combine trusted relationships in China with international financing. Having recently joined Simmons, it is great to be a part of a firm which is so well placed to support companies such as NBT but also other clients on major projects of similar scale and size.”
With a focus on emerging markets, NBT was the first company to close a limited-recourse financing in the fledgling wind power market in China in 2010 and earlier this year NBT, together with its equity partner Total Eren, closed the first limited-recourse financing of a wind farm in Ukraine with the 245.7 MW Syvash project. So far, NBT has commissioned three wind farms, totalling 150 MW of capacity in China. Leveraging the success in China and Ukraine, NBT is continuously assessing project opportunities in other emerging markets.
The Zophia deal is the latest in a line of award-winning wind project deals for the Energy, Natural Resources & Infrastructure Projects team at Simmons, demonstrating its market leading position in landmark transactions such as the Markbygden 650 MW wind farm in Sweden which won European Wind Deal of the Year at Thomson Reuters PFI Europe Awards 2018 and advising on the largest joint venture arrangement between a private equity fund and a developer in Africa (US$1.9bn ) and Chile (US$1.4bn).
Carl Philip Brandgard, PR Manager: +44 20 7825 4217 CarlPhilip.Brandgard@simmons-simmons.com
Ovid North LLC intends to build an Ovid North wind farm with a capacity of 80 MW (Ovidiopol district of Odesa region) in the area north of the existing Ovid Wind farm, according to the website of the unified register of environmental impact assessment. Within the project it is planned to build from 12 to 16 wind turbines with a capacity of 3.6 MW to 5.5 MW each. The height of the towers is from 120 meters to 160 meters. The rotor diameter is from 130 meters to 170 meters.
It is expected that the wind farm will generate 230,000 MWh per year.
At first, the holding specialized in the construction of hydropower plants and thermal power plants and built large energy facilities with a total capacity of about 1.7 GW. In 2000, it reoriented to the construction and operation of its own energy facilities using renewable energy sources. As of 2018, the holding’s portfolio included 79 MW of hydroelectric power stations, 162 MW of geothermal stations, and 373 MW of wind farms.
Azovpromenergo LLC has started building of the second phase of Zofia wind farm with a 300 MW capacity in Yakymivsky district of Zaporizhia region, an announcement on the Environmental Impact Assessment Register’s website says. Within the framework of the project, it is planned to set up nearly 72 wind turbines with a capacity from 4,500 MW and 6,000 MW each. The height of the tower will reach 130 meters, rotor diameter is from 145 meters up to 170 meters depending on producer and a model of equipment. The second phase of the wind farm is to produce about 1.2 million MWh of electric power. Its total capacity is 750 MW.
According to the United State Register of Legal Entities, Individual Entrepreneurs and Public Organizations of Ukraine, Azovpromenergo belongs to East Renewable Zofia, which also owns LLC Azovinvestprom that in turn deals with the building of the first phase of the wind farm. However, Norway’s NBT has completed the acquisition of 82% of the charter capital of Azovinvestprom.
As reported, the investment agreement on the construction of a wind farm was signed on January 23, 2019r in Davos. The European Bank for Reconstruction and Development (EBRD), the Nordic Environment Finance Corporation (NEFCO), the Black Sea Trade and Development Bank and others also became parties to the agreement. The organizer of the syndicate of investors was JP Morgan.
In April 2018, NBT bought 100% of Syvashenergoprom LLC (operates a wind farm with a capacity of about 3 MW), and early September, an agreement was signed on the implementation of a project to build a 250 MW wind farm in Kherson region (along Syvash Lake) with the leading role of NBT. In the spring of this year, construction of 67 wind turbines will begin.
Both projects in Kherson and Zaporizhia regions are being implemented by NBT together with the French energy company Total-Eren (a subsidiary of Total).
NBT develops wind farms in emerging markets. The company has offices in Oslo (Norway), Limassol (Cyprus), Beijing (China), Singapore, Kyiv (Ukraine) and Karachi (Pakistan). Corporate management and administration is located in Oslo, while the technical functions and procurement are located in Beijing and Singapore.
Wind Solar Energy LLC (Kyiv) intends to build a 60 MW wind power plant in Zhytomyr region, according to the website of the unified register of environmental impact assessment.
The project includes building 18 wind turbines with a capacity of up to 5.6 MW each. The height of the towers will be 166 meters, the diameter of the rotor is up to 150 meters.
In addition, the plans include the construction of 12 km of technological roads, 12 km of cable networks, as well as power lines of up to 6 km. The operation life of the wind farm is 20 years.
As reported, Wind Solar Energy intends to build three phases of the Lisova wind plant with a total capacity of up to 190 MW in the area of the Pokaliv village (Korosten district, Zhytomyr region).
According to data posted on the company’s website, Wind Solar Energy through its subsidiary Solar Kvant has been operating solar plants of 5 MW on 10 hectares in Dnipropetrovsk region since 2013.
According to the unified register of legal entities, the ultimate beneficial owner of Wind Solar Energy is Elvira Tesliuk, before that the Cypriot company WSE CYPRUS LTD was in the ownership structure.
INTEGRITES acted as local counsel to EuroCape Ukraine, an indirect subsidiary of LongWing Energy, a Luxemburg-based independent power producer operating renewable assets in Europe, in connection with the financing of the first 98 MW phase of a 500 MW wind farm in Zaporizhia region, Ukraine.
The first phase of the project build-out is financed by a mixture of debt and equity. The Overseas Private Investment Corporation (OPIC) is providing US$150 mln in long-term financing. The remaining project costs are financed by LongWing S.C.A, VLC Renewables and GE Capital’s Energy Financial Services. GE Renewable Energy will also supply the turbines for the 98 MW.
The first phase of the project is under construction and shall enter operation in the first quarter of 2020. The subsequent phases are intended to be finished in the course of 2020. The wind park when fully constructed is expected to reduce carbon emissions by more than 4.86 tons per year and provide 780,000 of households in Ukraine with electricity.
INTEGRITES was retained by the sponsors as local counsel on overall aspects of financing, construction, regulatory, corporate and other development matters related to the project. In particular, the advice included structuring, advice on capital and exchange controls, review of the project and finance documentation as well as complex advice on the FiT regime, the PPA and the grid connection agreement.
«We are delighted to see that this pioneering and large-scale wind energy project has successfully achieved the financial close. Above all, this project will have a positive social and environmental impact for the region and we are proud to have contributed to promoting the sustainable development of Ukraine”, – comments Igor Krasovskiy, partner and project lead at INTEGRITES.
«I am very proud to see INTEGRITES helping to implement the second wind farm project financing in Ukraine after the Syvash deal, closed by our team a few months earlier this year. I am sure that reaching financing for the remaining 402 MW will be as successful as this deal», – said Dr. Oleksiy Feliv, Managing Partner at INTEGRITES.
INTEGRITES team included, among others, Managing Partner Dr. Oleksiy Feliv (Energy and Real Estate), partners Igor Krasovskiy (Finance/Projects), Illya Tkachuk (M&A and Corporate), Viktoriya Fomenko (Tax and Customs law), counsels Serhii Uvarov and Gennadii Roschepii, senior associates Olena Savchuk, Inna Kostrytska and Yuriy Korchev, associates Oleh Kotliar and Victoriia Shvydchenko.
LONGWING ENERGY SCA is a European IPP platform which acquires, constructs and long-term operates onshore wind and solar parks in Europe. LongWing Energy owns a pipeline of operating and development wind park projects of approx. 900 MW located in France, Poland and Ukraine. The company has a growth strategy targeting additional markets.
INTEGRITES is a full-service law firm with headquarter in Ukraine. Particularly focused on renewables, the firm represents the biggest international clients with a cumulative commitment to 2 GW of wind and 500 MW solar power projects in Ukraine which ensures the firm’s leading position on the regional market. For more information visit www.integrites.com