Agreement Signed for Hai Long Offshore Wind Farm Project in Taiwan

ON 11/07/2023 AT 09 : 48 AM

The Japan Bank for International Cooperation recently signed a shareholders' agreement for a joint investment with Mitsui & Co., Ltd. (Mitsui) of up to approximately TWD8.8 billion (JBIC portion) in MIT Wind Power B.V. (MWP) of the Netherlands.
  1. JBIC also provides a guarantee for part of an onshore equity bridge loan extended by Taiwanese local financial institutions to MWP’s investees during the construction period (total principal amount covered by guarantee: up to approximately TWD8.4 billion).
  2. In this project, Hai Long 2 Offshore Wind Power Co., Ltd. and Hai Long 3 Offshore Wind Power Co., Ltd. (collectively Hai Long) of Taiwan, in which Mitsui, Northland Power Inc. of Canada, and others hold equity shares, will build, own, and operate a 1,022 MW offshore wind farm located off the coast of Changhua County, Taiwan. This equity participation is intended to support the project by providing funds required for its development and operation. JBIC also signed a loan agreement in project financing with Hai Long on September 22 for the project and provided guarantees for a Taiwan dollar-denominated onshore loan by private financial institutions*1.
  3. In March 2022, Taiwan announced Taiwan’s Pathway to Net-Zero Emissions in 2050, according to which Taiwan aspires to increase the proportion of renewable energy in its power supply to 60% to 70% by 2050. The equity participation is in line with the renewable energy transition policy of Taiwan and will contribute toward preserving the global environment through the reduction of greenhouse gas emissions.
  4. In the Infrastructure System Overseas Promotion Strategy 2025 (supplemented in June 2023), the Government of Japan, in support of the transition to carbon neutrality and decarbonization, established a policy of providing support for quality energy and electricity infrastructure that harnesses sophisticated technologies to reduce the burden on the environment in a way that is compatible with the energy policy of the host countries. The equity participation is in line with this policy and will financially support an overseas infrastructure project in which a Japanese company has invested and will be involved in terms of its operation and management for a long term, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
  5. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their infrastructure businesses toward decarbonization by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.