Client: United States Trade and Development Agency (US TDA)
Dates: 2006 - 2008
Country of assignment: Bulgaria 

Description of actual services provided:

Encon in association with General Electric, the Utility Wind Interest Group and USAID/Sofia, was awarded a grant from USAID to develop a Public Private Partnership to structure small wind farm projects in Bulgaria, in the 5-10 MW range, and was in partnership with the Municipality of Karlovo, Bulgaria, and local energy services company. The project structure was unique in that it used equipment finance leases for the wind turbines and towers, and commercial debt financing, from a local commercial bank, for installation, balance of plant components and working capital for wind farm’s operation. The proposed project structure required a public-private partnership with a municipality and private Bulgarian energy services company that is responsible for O&M. The municipality secured the lease and debt financing using municipal assets, both of which were to be repaid from the project revenue stream via electricity sales to Bulgaria’s National Electric Company. The municipal leasing approach was to overcome many of the obstacles that impeded private power projects, and provide a needed source of revenue to cash-strapped municipal governments. The Alliance was to secure working capital loans and structured financing from one or more sources, including Ex-Im Bank, OPIC, IFC, and/or the Balkan Infrastructure Development Facility, to complete the project’s development and install the wind farm.