April 26 (Bloomberg) -- Electrawinds SE’s Serbian wind farm is being considered by the World Bank’s International Finance Corp. for an award of 59.2 million euros ($77 million) of loans to help the nation curb power shortages and reliance on coal.
The Belgian renewable energy company is working on Alibunar in Vojvodina province, northeast Serbia, according to documents on Washington-based IFC’s website. The 42-megawatt plant will cost 80 million euros and use 21 turbines, they showed.
Serbia, relying on coal for 62 percent of its power, plans to stop energy shortages that pushed up generation costs. The Balkan nation, which doesn’t have any operating wind energy, in February revised clean power incentives to spur 1,092 megawatts of renewables including wind, hydro and biomass by 2020.
IFC’s proposed investment comprises a 16 million-euro loan, a syndicated 39.2 million-euro loan and 4 million-euro non-convertible subordinated loan, according to the lender.
Electrawinds will supply 20.8 million euros of equity and a commercial bank will provide a so-called VAT facility, the IFC said. The investment is pending an IFC board review on May 27.
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