The International Finance Corporation (IFC), a member of the World Bank Group, has decided to provide both equity and debt to china-based wind energy developer, Honiton Energy Caymans Plc.

The Tanti Group, promoters of India's top wind turbine maker Suzlon Energy Ltd, holds a 23.6% equity stake in Honiton Energy.

Honiton Energy plans to build up about 1,600 MW of wind energy capacity by the next three years (2012) in China's Inner Mongolia region.

Moreover, it has commissioned 50 MW, and another 100 MW is under development.

As per data available on IFC's official website, the expenditure of the next two project stages is figured at $160 million, and the growth of around 550 MW by the next few years is reckoned to cost $760 million.

IFC's planned investments comprise an equity component of $40 million and different loan categories of up to $25 million and $75 million.

According to the IFC site, Honiton has received exclusive conditional rights to build up wind energy farms on five separate lands of Inner Mongolia Autonomous Region of approximately 2,155 sq km, with a prospective to generate 6,200 MW of wind energy and expecting investments of around $8 billion.

Arcapita Bank, a top investment firm headquartered in Bahrain, and Colossus Holdings, a Singapore-based holding company of the Tanti Group, entered into a joint venture and bought 90% stake in Honiton Energy in July 2008.

Both the associates plan to invest around $2 billion to develop 1,600 MW of wind energy capacity by 2012.

Suzlon has supplied the turbines for the first phase of Honiton's wind farm at Bailingmiao.

REpower, a German wind turbine maker in which Suzlon is ready to buy a controlling stake, has a joint venture with Honiton to create 2 MW wind turbines.

IFC thinks that its investment in Honiton Energy, one of the first foreign private developers to deliver wind farms in China, will hearten other investors to take part in China's wind energy segment.