Reference: 20120340
Release date: 22 May 2013

Promoter – Financial Intermediary

Kaxu Solar One Ltd

Location

Description

The project concerns the construction and operation of a greenfield concentrated solar power (CSP) plant with 100 MW of installed power generating capacity.

Objectives

The operation will support the objectives of the South African government to increase the share of renewable energy generation and enhance the efficiency of energy use.

Comments

Intermediaries are the Development Bank of Southern Africa and FirstRand Bank Ltd. This operation is covered by the EU Political Risk Guarantee for EIB loans outside the EU.

Sector(s)

  • Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 210 million

Total cost (Approximate amount)

EUR 569 million

Environmental aspects

If the project were located in the EU, it would fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU) as amended, requiring the competent national authority to determine the need for an EIA. Under South African law, the project requires a mandatory EIA including initial scoping and public consultation. During appraisal, the Bank will ensure that the project complies with the Bank's principles and standards as regards environmental and social issues.

Procurement

The project concession has a local preference element requiring the promoter to procure domestically 20% of its investment. The required local component is well below the level at which parts can naturally be sourced locally and at economic prices. A more detailed assessment has been performed by the Bank, verifying that the project meets the Bank's criteria of economy and efficiency.

Status

Signed - 29/10/2013

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

South Africa Energy