OREANDA-NEWS. July 23, 2012. KfW IPEX-Bank and Landesbank Baden-Wurttemberg (LBBW) are providing a loan of USD 164.5 million to finance the construction of the wind farm "Karaburun" near the Turkish city Izmir. The facility, which will have a capacity of 120 megawatts, will be powered by 50 wind turbines to be built by the German producer ENERCON of Aurich. In addition to supplying and erecting the turbines, Enercon will also service them through a subsidiary over the entire loan term of 14 years after commissioning. The total investment cost of the project, which will be implemented by the Turkish group Alto Holding A.S., is around USD 227 million (EUR 182 million). The loan initiated by LBBW and granted by LBBW and KfW IPEX-Bank in equal shares is covered for the most part by an export credit guarantee of the Federal Republic. The transaction is the first Hermes-covered project financing of a wind farm in Turkey, a growth market for renewable energies.

The Karaburun wind farm is expected to supply green electricity to about 100,000 households from 2013. Similar to Germany's Renewable Energy Sources Act (EEG), electricity generated from renewable energies is promoted by an offtake price guaranteed for ten years under Turkey's "YEKDEM" incentive.

Financing projects in the area of environmental and climate protection and supporting German enterprises in their export business are an integral part of the programmes offered by KfW IPEX-Bank.