GWT is 100% owned by Gamesa, which was established on January 28, 1976 as a company specializing in robotics, microelectronics, aeronautics and the development of composite materials. Gamesa founded its wind turbine manufacturing unit, a subsidiary called Gamesa Eólica, in 1994. Since completing its first wind farm project in 1996, Gamesa has primarily focused its efforts on the development of wind power technology, culminating in its withdrawal from aeronautics services in 2006 and solar power services in 2008. Today, the Company has three business lines: (i) design, manufacturing and installation of wind generators (3,145 MW in 2009) through its subsidiary, Gamesa Eólica; (ii) promotion, construction and sale of solar and wind farms through its subsidiary, Gamesa Energia (182 MW in 2009); and (iii) energy solutions. The Company was publicly listed on the Madrid Stock Exchange in 2000 and has been included in the selective Ibex 35 rankings since 2001.

The total project cost is estimated at €70 million. The proposed IFC investment is an A Loan of up to €11 million.

14.72 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	14.72
Equity

* These investment figures are indicative

The Project is expected to be located just outside of the city of Chennai in the state of Tamilnadu. The current assembly facility is located in Red Hills, Tamilnadu.

Job creation: The new facility is expected to create about 150 new jobs as well as additional jobs in line with the facility’s growth and expansion in the coming years;
Support for the Indian wind power market: by producing low-cost turbines locally that are best suited to the country’s grid and wind conditions, the Gamesa Project will help develop and bolster the wind market in India;
Technology transfer: while the Project currently envisions assembly in India, the Company aims to have a full turbine production facility set up in the long-term. This process will result in the transfer of important climate change related technology.

Long-term financing: IFC’s proposed financing consists of an eight-year loan with one year grace. Foreign currency debt which such long tenors are not easily available in India.
Environmental and social improvements: IFC will provide guidance to the Company in the area of environmental and social management to implement international best practices in the local Indian context - especially for its wind farm development business.

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects.

Key risks and issues related to this investment include: adequate social and environmental assessment of the impacts of the Project during both construction and operations; the Company’s capacity to manage its social, environmental, health and safety performance, and engage with local communities in accordance with local requirements and IFC Performance Standards and EHS Guidelines; assurance of fair, safe and healthy working conditions during construction and operations; management of the impacts of the influx of construction labor; management of wastes and emissions from the manufacturing facility as well as construction sites; impacts on community health, safety and security due to transport of wind farm equipment and wind farm operations; and with regard to wind farm sites: selection, management of land acquisition, physical/economic displacement and compensation as required.

Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project can be obtained are provided in the IFC Environmental & Social Review Summary and Environmental & Social Action Plan.