IIF entered the Polish wind energy market, when it purchased 50% of Winergy for NIS 50 Million. The new wind farm will be built in northern Poland and will generate cash flow of tens of millions of shekels a year
By Michael Rochwerger
Israel Infrastructure Fund (IIF) continues to expand its investment activities in the field of wind energy in Poland. IIF and CERAC recently decided to establish a wind farm infrastructure project in the city of Orla, northern Poland, totaling NIS 312 Million. The project will be set up by Winergy, jointly owned by IIF and CERAC and under the management of Ron Weisberg and Adam Ofek. At the beginning of 2014, the Fund purchased 50% of Winergy for NIS 50 Million.
The partners received project funding from the European Bank for Reconstruction and Development (EBRD) for 70% of the project, and Winergy will invest equity totaling 30% of the investment. The wind farm to be constructed this year is slated to generate 37.5 megawatts of electricity and save 57,400 tons of carbon dioxide annually. Once the farm begins operating, it is expected to generate an annual cash flow of tens of millions of shekels. The wind energy market in Poland is in a state of steady growth – the domestic market was primarily dependent on coal up until now, and a greener alternative is being encouraged by the local government and by the European Union.
IIF is a private equity fund with over $1 Billion under management. The Fund is owned by the Harel Group, Adv. Yehuda Raveh and Yaron Kestenbaum, who manages the Fund’s activities. IIF’s investments to date include Dalia Energy Power Plant, CityPass – the Jerusalem Light Rail concessionaire; Derech Eretz – operators of Highway 6, Swissport – operators of an air cargo terminal facility at Ben Gurion International Airport, Hayovel Lines – operators of Highway 431 and Winergy.
According to Yaron Kestenbaum, “this is a significant milestone in our investment program.” Ron Weisberg, CERAC’s President said: “our business partnership with Israel Infrastructure Fund was a critical factor in obtaining funding.”