Skip to content
AidData logo

Overview

Bank of China (Luxembourg) Poland Branch provides a zł220 million PLN loan for the 70 MW Korsze Wind Farm Project

Commitments (Constant USD, 2023)$71,507,449
Commitment Year•2014Country of Activity•PolandDirect Recipient Country of Incorporation•PolandOverseas Jurisdiction•PolandSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2014
Last repayment (originally scheduled)
Jul 30, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (Europe) S.A. (formerly Bank of China (Luxembourg) S.A. or BOC Luxembourg)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Korsze Wind Farm, Sp.z.o.o.

Loan description

Bank of China (Luxembourg) Poland Branch provides a zł220 million PLN loan for the 70 MW Korsze Wind Farm Project

Interest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

In August 2014, the Poland Branch of Bank of China (Luxembourg) S.A. entered into a zł220 million PLN (€53 million EUR) loan agreement with Korsze Wind Farm, Sp.z.o.o. — a Poland-incorporated special purpose vehicle and wholly-owned subsidiary of EDP Renováveis, S.A. (EDPR), a Spain-incorporated renewable energy company headquartered in Madrid, Spain and listed on the Euronext Lisbon with Portuguese electrical utility EDP - Energias de Portugal, S.A. as its majority shareholder (77.5% stake as of 2014), itself with 21.35% held by China Three Gorges International (Europe), S.A. (a vehicle ultimately wholly-owned by Chinese state-owned China Three Gorges Corporation) — for the 70 MW Korsze Wind Farm Project. The loan carried a maturity period of eight years. The proceeds were to support the Korsze Wind Farm Project, an operational onshore wind farm with a capacity of 70 MW via 35 G90-2.0 MW turbines in Kętrzyn County, Warmian-Masurian Voivodeship. The project was commissioned in 2011.

Staff comments

1. The exact use of the loan proceeds is unknown, as the project was already complete. It is plausible the loan refinanced existing debt or was used for working capital purposes. This issue merits further investigation. 2. China Daily claims this loan was worth zł260 million PLN, but EDPR's reports state it was zł220 million PLN.