ADB supports China WindPower in developing 800MW Wind Power projects

The project will be financed in part from the proceeds of ADB’s 1.2bn Renminbi-denominated bonds issued in Hong Kong, China in October.

China WindPower Group Limited (“China WindPower”) an integrated wind power generation company in China, on Friday announced that Asian Development Bank (ADB) will provide up to $120 million to the Group, to support private sector participation in wind power farms in the northern part of the People’s Republic of China (PRC). ADB will provide a dual currency US dollar-renminbi loan of up to US$120 million equivalent. CWP will use this proceed to build and operate up to 800 megawatts (MW) of new wind farms by 2013 mainly in Jilin Province.

CWP and ADB signed the loan on Friday in Beijing. This represents ADB’s first multi-project financing facility for wind power. It will be financed in part from the proceeds of ADB’s landmark 1.2 billion Renminbi-denominated bonds issued in Hong Kong, China in October, according to a China WindPower report.

Mr. Liu Shunxing, Chairman and CEO of China WindPower, said “China WindPower’s cooperation with ADB is significant for the smooth and sustainable development of the wind power sector in the PRC. We hope to further our multi-faceted cooperation with ADB to capitalize on the PRC’s rich wind resources.”

The PRC is the world’s second largest energy consumer and is also one of the largest producers of greenhouse gases due its high reliance on coal, resulting in pollution which undermines sustainable growth. The government is moving swiftly to expand the use of renewable energy resources and is scaling up plans for installed capacity to 150 GW of wind power by 2020. The overall goal is to increase renewable energy’s share of electricity generation to 15% by 2020.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, it is owned by 67 members – 48 from the region. In 2009, it approved a total of $16.1 billion in financing operations through loans, grants, guarantees, a trade finance facilitation program, equity investments, and technical assistance projects. ADB also mobilized cofinancing amounting to $3.2 billion.