OREANDA-NEWS. Tata Power, India's largest integrated power company, today announced the successful financial closure for its 95MW Tsitsikamma wind farm project in South Africa through its joint venture company with Exxaro Cennergi. The company had recently also announced the successful financial closure of its 135MW Amakhala Emoyeni wind farm project in South Africa. The company was selected as the preferred bidder for 230MW wind farms - 135MW Amakhala Emoyeni wind farm project and the 95MW Tsitsikamma wind farm project by the Department of Energy, Government of South Africa in 2012.

Cennergi has successfully tied up the entire debt requirement through Nedbank. The signing of financing agreements was completed on June 5, 2013. The company also completed pre-disbursement conditions under the financing agreements for availing interim disbursement and received the first loan disbursement on June 28, 2013. The project of approximately R2,905 million is being funded through a debt equity mix of 75:25. The project financing comprises equity of R726 million and Rand term loans of R2,179 million.

With this, the company has attained financial closure for both its wind projects. Tata Power announced the successful financial closure for its 135MW Amakhala Emoyeni wind farm project in June 2013.

The wind projects will be located in Eastern Cape, South Africa, and are expected to achieve commercial operations in 2016. Power purchase agreements and implementation agreements for these projects were signed with Eskom and the Department of Energy on May 9, 2013.

Cennergi is a 50:50 joint venture between South Africa's Exxaro Resources and Tata Power.

Speaking on the announcement, Anil Sardana, chairman, Cennergi, and managing director, Tata Power, stated, “We are pleased to complete the financial closures for both our wind projects in South Africa. The signing of the financial agreements is a significant milestone for the project, and we take this opportunity to thank our investors who have once again shown faith in Tata Power.”

Cennergi, based in South Africa, focuses on the investigation of feasibility, development, ownership, operation, maintenance, acquisition, and management of electricity generation projects in South Africa, Botswana, and Namibia. The initial project pipeline focuses on renewable energy projects in Southern Africa and Cennergi's strategy is to create a balanced portfolio of generation assets.

Cennergi aims to be the leading cleaner energy independent power producer in Southern Africa, serving an expanding energy market. The company's diverse project portfolio confirms its commitment to both people and planet.