Photo: ELG21 from Pixabay
The European Bank for Reconstruction and Development (EBRD) and International Finance Corp. (IFC) expressed willingness to provide a long-term loan for the Štip wind power project in North Macedonia. It would be for phase 1, of 132 MW, the third of the capacity that Alcazar Energy Partners plans for the facility.
The Štip (Shtip) wind power project in North Macedonia extends across the municipalities of Štip and Radoviš, and to a minor extent Karbinci. It spans 335 hectares in the country’s east, of which 90% is state-owned land. Most of it is hilly, rural terrain. Alcazar Energy Partners broke ground last summer. The next step is to secure a financing package.
EBRD announced that it is exploring the possibility of approving a non-recourse long-term senior loan in favour of STP Wind. It is the special purpose vehicle or SPV for the first phase of Štip wind farm. It amounts to 131 MW, out of 396 MW in total, the document reads.
The entire wind power project includes the installation of a 35/400 kV substation, 80 kilometers of buried 35 kV cables and a seven-kilometer overhead line of 400 kV, the update shows. In addition, 68 kilometers of roads are required to be constructed or refurbished.
Alcazar Energy’s advisory team is based in Dubai, United Arab Emirates. The firm’s fund AEP-II, which owns the Štip project, has brought together investors from North America, Europe, the Middle East and Asia.
At this moment, it would be by far the biggest wind park in the Western Balkans.
IFC mulls EUR 150 million loan
EBRD didn’t disclose other financial details. However, IFC may also earmark a loan. It estimated Štip’s total costs at EUR 450 million, compared to a sum of EUR 500 million that was floated earlier.
The International Finance Corp. said the project envisages a long-term debt financing package of EUR 320 million. It is considering providing an A loan from its own account, of up to EUR 150 million, and mobilizing up to EUR 50 million in senior loans and a value-added tax (VAT) facility from commercial banks.
IFC is examining the possibility of mobilizing up to EUR 50 million
The finance institution, part of World Bank Group, added that the first phase would consist of 21 turbines, of 131 MW or 132 MW altogether. As for the other two phases, of 136 MW and 128 MW, it expects them to enter construction within a year. The first part would be commissioned in early 2028, and the entire wind farm fully operational by 2029.
Annual net output of phase 1 is seen at 321 GWh, versus more than 860 GWh for the whole facility, the documentation showed. The project firms for phase 2 and 3 are called Karb Wind and Rado Wind, respectively, IFC said.
Support for income loss, vulnerable households
The closest villages to project components are Ljuboten, Šašavarlija, Bučim, Baltalija and Nikoman.
Nearest homes would be over 500 meters away from the closest turbine. The project includes bat protection measures, compensation for land, crops and trees and support for income loss and vulnerable households.
The company has selected and is about to formally commission a turbine supplier and is in the process of hiring a contractor for the balance-of-project (BOP) works and an operations and maintenance (O&M) company, according to IFC.
Alcazar is also active in neighboring Serbia, as well as in Montenegro and Egypt.
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