Climate Fund Managers backs wind farm in Tunisia

Posted on: 29 June, 2020 at 11:51 AM

Climate Fund Managers (CFM) and UPC Renewables (UPC) have announced their partnership for the development of the 30 MW Sidi Mansour wind farm in Tunisia.

CFM is a blended finance manager established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa.

The total investment size of the project is expected to be approximately $40 million.

The project will be one of the first wind independent power producers (IPP) in the country. CFM is participating as co-developer, sponsor, financial advisor and E&S advisor to the project, through the development and construction financing facility under its management, Climate Investor One (CI1). CI1 is the inaugural facility managed by CFM and the first of an intended series of blended finance investment vehicles focused on providing capital to climate mitigation and adaptation sectors in developing countries.

UPC will lead the development of the project with its local team that will lead land securitisation, permitting, grid connection, wind resource assessment, and engineering and procurement contracts.

UPC was selected as one of the four awarded companies under the “Authorisation Scheme” tender for its 30 MW Sidi Mansour project in Northern Tunisia in January 2019 and subsequently signed a PPA with Société Tunisienne d’Electricité et du Gaz. UPC has been developing the project for more than a decade.

The Sidi Mansour project will assist Tunisia in meeting its renewable energy goal, reduce reliance on imported fossil fuels, and demonstrate that Tunisia is an attractive destination for renewable energy investments. In 2016, Tunisia announced the launch of the Tunisian Solar Plan 2030 with the goal of increasing the share of renewables in the electricity generation mix from 3% to 30%.

“We are excited to work with CFM under this partnership for Sidi Mansour 30MW project that can address some of the challenges in the authorisation scheme to help achieve the ambitious Tunisian Solar Plan. We can start the construction of the Sidi Mansour wind farm in 2020, helping stimulate the Tunisian economy, create local jobs and a social plan for local communities while respecting international environmental protection guidelines,” says Brian Caffyn, chairman of the UPC Group.

“CFM is thrilled to partner with a leading wind developer in the Sidi Mansour Wind Project to assist Tunisia in meeting its renewable energy goals. As potentially the first wind IPP in Tunisia, this project will be a testament to how CI1’s full lifecycle financing solution can unlock investment in renewable energy in new markets,” notes Sebastian Surie, regional head of Africa for CFM.

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