Release date: 22 May 2013
Promoter – Financial Intermediary
Kaxu Solar One Ltd
The project concerns the construction and operation of a greenfield concentrated solar power (CSP) plant with 100 MW of installed power generating capacity.
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.
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.
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 210 million
Total cost (Approximate amount)
EUR 569 million
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.
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.
Signed - 29/10/2013
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).