USD 120 million deal signed for Sainshand wind farm in Mongolia

Mongolia, 2017-08-23

The Sainshand wind farm in Mongolia, the third privately financed wind farm in the country, will receive a USD 120 million project financing package from a group of international investors and financiers.

Located 460 km south-east of Ulaanbaatar in the Gobi Desert, Sainshand Salkhin Park LLC is sponsored by French energy leader ENGIE, German project developer Ferrostaal, Danish Climate Investment Fund (DCIF) and Mongolian entrepreneur, Radnaabazar Davaanyam, with long-term financing provided by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

The lenders have agreed to provide a total project financing of USD 78.5 million, which comprises EIB funding of USD 47 million, of which the first tranche will be guaranteed by EKF, Denmark’s Export Credit Agency, with NORD/LB acting as agent; and EBRD funding of USD 31.5 million.

Once operational, the new Sainshand wind farm will make a significant contribution to reducing Mongolia’s carbon emissions and cater for an expected increase in power demand in the country. The scheme will significantly enlarge Mongolia’s renewable energy capacity and help the government to achieve the goal of renewable energy accounting for 20 per cent of all power by 2020, and 30 per cent by 2030.

The Sainshand wind farm will be built by China Machinery Engineering Corporation (CMEC) as the engineering, procurement and construction (EPC) contractor, and will use 25 Vestas V110 2.2 MW turbines to deliver up to 55 MW of clean energy that will save an estimated 200,000 tonnes of carbon emissions. Construction at the site is expected to start later this summer and be completed before the end of 2018. It follows three years of wind surveys to measure the high-yield winds in the area. The average wind speeds per second at the site are ideal for onshore wind energy.

The project has been developed in consultation with the local communities and a detailed environmental impact assessment has been approved by the relevant national authority. Financing has been agreed following preparation of a comprehensive environmental and social management system compliant with international standards such as those of the EBRD, EIB, International Finance Corporation (IFC) and the Equator Principles.

Quote Sheet:

Nandita Parshad, Managing Director for Energy and Natural Resources, European Bank of Reconstruction and Development (EBRD), said: "Since the seed investment in the first Mongolian wind farm in 2009, the EBRD has been a staunch supporter of renewable energy development in the country, providing policy advice, technical assistance and financing for every wind project so far. Sainshand is our third wind farm project in Mongolia, and I am especially pleased to see new investors come to this promising sector."

Jonathan Taylor, Vice President, European Investment Bank (EIB), said: "The European Investment Bank is committed to supporting climate-related investment across Asia and is pleased to support development of wind power in Mongolia, which provides an alternative to coal use. The Sainshand wind farm will use world-class technology and demonstrate that wind power can be successfully harnessed in remote regions facing a harsh climate."

Hans-Dietmar Schweisgut, Ambassador, European Union to Mongolia, said: "Mongolia and the European Union are signatories of the Paris Climate Agreement and the new Sainshand wind farm shows the close partnership between Europe and Mongolia to reduce carbon emissions through renewable energy. European finance and technical expertise, working in close cooperation with Mongolian partners, demonstrate a shared ambition to harness wind from the Gobi Desert to tackle climate change."

Christian Ølgaard, Deputy CEO, EKF Danish Export Credit Agency, said: "Establishing a private wind farm in a country like Mongolia is a complex matter. Financing requires close cooperation between a number of financial partners and the ability to cover both the country-specific and the project-specific risks. I am pleased that we have managed to finance the project debt with the European Investment Bank and the European Bank for Reconstruction and Development."

Paul Maguire, CEO of ENGIE Asia-Pacific, said: "ENGIE’s ambition is to provide energy access for all through clean and renewable energy sources, especially to developing communities. Mongolia is facing an energy challenge due to increasing demand from industrialisation and urbanisation. As our first renewable-energy project in Mongolia, ENGIE’s investment in the Sainshand wind farm is consistent with our vision of leading the global energy transition, and the drive for decarbonisation will significantly contribute to powering the country’s energy needs."

Dr Klaus Lesker, Member of the Executive Board, Ferrostaal GmbH, said: "Achieving the financial close for the Sainshand wind park is an important milestone for Ferrostaal, for the Mongolian government and for the population of Mongolia. Investing in renewable energy is a significant step in the right direction. Having been present in the Mongolian mining equipment sector for quite some years we are confident that this is a great start for further successful project development in the country’s renewable energy sector."

Tommy Thomsen, Chief Executive Officer, Investment Fund for Developing Countries (IFU), said: "Our investment in the Sainshand wind farm is fully in line with the purpose of the Danish Climate Investment Fund, which is to help increase investments in climate-friendly projects in developing countries and emerging markets and promote the use of Danish climate-related technology. In Sainshand, the wind turbines will be supplied by a Danish manufacturer. We are pleased to be involved in this sizeable project that will help Mongolia on its way to fulfilling its green-energy objectives."

Radnaabazar Davaanyam, Director, Sainshand Salkhin Park LLC and Head, Renewable Energy Council, Mongolian Chamber of Commerce and Industry, said: "After 10 years of project planning and negotiations, I am very pleased that the Sainshand wind farm project will commence construction. Once completed, the wind farm will contribute significantly to the quality of the energy supply in Mongolia, using local renewable energy sources. The project partners ENGIE and Ferrostaal have been integral in laying the foundation for this project, supported by the Mongolian Ministry of Energy, Energy Regulatory Commission of Mongolia and the authorities of the Dornogobi province."


Background information:

European Bank for Reconstruction and Development (EBRD)

The EBRD is a multilateral bank committed to the development of market-oriented economies and the promotion of private and entrepreneurial initiative in more than 30 countries from Morocco to Mongolia and from Estonia to Egypt. It is the largest financier and enabler of renewable energy in its region of operations. Under the EBRD’s new transition concept the Bank aims to promote the six transition qualities, defining successful and sustainable market economies as competitive, inclusive, well-governed, green, resilient and integrated. The Bank is owned by 66 countries, the EU and the EIB. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.


European Investment Bank (EIB)

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB has operated in Mongolia since 1997 and past engagement has supported investment in water infrastructure in the capital Ulaanbaatar. The EIB is one of the world’s largest financiers for renewable energy investment and last year provided €3.9 billion for renewable energy projects including wind, geothermal, solar and hydropower schemes around the world.



EKF Denmark's Export Credit Agency is the world’s leading export credit agency in supporting wind energy. Over a period of 10 years, EKF has been involved in approximately 60 per cent of the total wind financing covered by export credit agencies worldwide covering around 100 wind farms both offshore and onshore. 



ENGIE is committed to take on the major challenges of the energy revolution, towards a world more decarbonised, decentralised and digitised. The Group aims at becoming the leader of this new energy world by focusing on three key activities for the future: low carbon generation in particular from natural gas and renewable energies, energy infrastructures and efficient solutions adapted to all its clients’ needs (individuals, businesses, territories, etc.). Innovation, digital solutions and customer satisfaction are the guiding principles of ENGIE’s development. 

ENGIE is active in around 70 countries, employs 150,000 people worldwide and achieved revenues of €66.6 billion in 2016. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance). For further information:  



Ferrostaal Industrial Projects is an international project developer and engineering, procurement and construction (EPC) service provider for the realisation of industrial plants in the petrochemical and wind energy sectors as well as other selected project opportunities. The company additionally undertakes the planning, delivery, installation and maintenance of lighting solutions for sport and logistics. Ferrostaal Industrial Projects is a member of the Ferrostaal Group, a global technology-independent, manufacturer-independent and supplier-independent industrial services provider. Some 3,600 employees combine decades of industrial expertise with financing competence on behalf of the customers. Ferrostaal has companies in around 40 countries. For further information: 


Investment Fund for Developing Countries (IFU)

IFU provides risk capital and advice to companies wishing to set up business in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity and loans. The purpose is to promote economic and social development in the investment countries. IFU acts as fund manager for the Danish Climate Investment Fund, which is a public-private initiative established to secure funding for climate-related projects in developing countries and emerging markets as well as to promote the sale of Danish climate-related technology. IFU’s head office is located in Copenhagen, and we have regional offices in China, Singapore, India, South Africa, Kenya, Ghana, Nigeria, Colombia and Ukraine. For more information, see

Press contacts:

EBRD: Svitlana Pyrkalo, Svitlana.Pyrkalo(at)ebrd(dot)com, +44 20 7338 7105 

EKF: Ulla Jepsen, ulj(at)ekf(dot)dk, Tel: +45 35 46 26 78, +45 81 710 928  

EIB: Richard Willis, r.willis(at)eib(dot)org, press(at)eib(dot)org, Tel: +352 4379 82155, +352 621 555 758

ENGIE: Emilie Ménard, engiepress(at)engie(dot)com, Tel: +33 1 4422 2435 

Ferrostaal: Martin Wiechers, martin.wiechers(at)ferrostaal(dot)com, Tel: +49 201 818 2820 

IFU: Rune Nørgaard, rno(at)ifu(dot)dk, Tel. +45 33 637 560