CIP and Export Credit Banks Audit Progress of Changfang and Xidao Wind Farms in Taiwan

　　Denmark offshore wind developer CIP, along with a consortium of seven export credit banks comprising over 60 individuals, is set to arrive in Taiwan on the 26th of June. They will be joined by domestic and international host banks and syndicate banks, making a total of over a hundred people who will travel offshore to conduct an audit of the wind farm project located off the coast of Changhua. The purpose of their visit is to assess the progress of CIP's Taiwan projects in Changfang and Xidao offshore wind farms, taking into account the impact of the pandemic, as well as inspect the production status of the supply chain vendors. This audit operation by the consortium of banks is receiving considerable attention, as it coincides with the sensitive period leading up to the signing of the administrative contract for Phase 3-1 of the zonal development.

　　Some European developers adopt Project Finance to finance wind farm development through foreign export credit banks. The costs proposed by these developers need to be reviewed and approved by the foreign consortium of banks. Disbursements are made based on the progress of the project, rather than in a lump sum. Monthly reports are submitted by the developers to the consortium of banks, ensuring financial transparency. On-site audits by bank representatives are a significant characteristic of project finance. Domestic banks have gradually been learning and implementing this professional approach to project financing. CIP's Changfang and Xidao wind farms are developed using this project finance method.

　　According to the administrative contract, CIP's Changfang and Xidao wind farms are scheduled to be completed and connected to the grid by the end of 2024. Along with CIP and CSC's joint venture wind farm, they are the only two projects that have not applied for an extension from the Bureau of Energy. CIP has committed to the consortium of banks that all 62 turbines in the Changfang and Xidao wind farms will be fully installed and connected by the end of this year. However, currently less than half of the turbines have been installed, indicating a need to accelerate the construction pace. The syndicate of banks involved with the Changfang and Xidao projects has expressed concerns over the delayed progress of the maintenance and operation harbor in Changhua and has requested an on-site inspection.

　　Managing Director of CIP, Nai-Wen Hsu, mentioned that although the Changfang and Xidao projects, as well as the CSC wind farm, have the Changhua Maintenance and Operation Center established since early last year, the center's operation has been delayed for over two years due to issues concerning jurisdiction between central and local authorities. As a result, maintenance vessels have been unable to enter the harbor, and the operation center has been largely unused. Hsu stated that besides maintaining close communication and collaboration with the central and local governments, they will also make efforts to work together with suppliers to catch up with the schedule, in order to alleviate concerns from the consortium of banks.