Israel Infrastructure Fund entered the wind energy market in Poland, when it acquired 50% of Winergy for NIS 50 million. The new wind farm will be built in northern Poland and will generate an annual cash flow of tens of millions of shekels
By Michael Rochwerger
Israel Infrastructure Fund continues to expand its activity in the wind energy sector in Poland; the Infrastructure Fund and CERAC Israel have recently decided to establish a project in this sector in the city of Orla, located in northern Poland with an investment of NIS 312 million. The project will be spearheaded by Winergy, which is owned by Israel Infrastructure Fund (IIF) and CERAC and is under the management of Ron Weisberg and Adam Ofek. At the beginning of 2014, IIF purchased 50% of Winergy for NIS 50 million.
The partners received bank funding totaling 70% of the project from the European Bank for Reconstruction and Development (EBRD); and Winergy will invest equity of 30% of the total investment. The wind farm scheduled to be built this year is projected to supply 37.5 megawatts of electricity and will save 57,400 tons of carbon dioxide annually. After it begins operations, the farm is expected to generate annual cash flows of tens of millions of shekels. The wind energy market in Poland is on a steady upward trend: Because the local market has relied primarily on coal up until now, this green alternative has received encouragement from both the local government and the European Union.
The Israel Infrastructure Fund is a private equity fund that manages assets of more than $1 billion. The fund is owned by the Harel Group, Attorney Yehuda Raveh and Yaron Kestenbaum, who runs the Fund’s activities. IIF’s holdings include the Dalia Power Station, CityPass – the Jerusalem Light Rail concessionaire, Derech Eretz – operator of Highway 6, Swissport – operator of the cargo terminal at Ben Gurion Airport, Hayovel Lines – operator of Highway 431, and Winergy. According to Kestenbaum: “This is a significant milestone in our investment plan.”
Ron Weisberg, owner of CERAC said: “The business collaboration with Israel Infrastructure Fund was a critical factor in securing the financing.”