Ipsa draws down IDC loan to add 4 MW on site

5th June 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

Dual-listed independent power plant developer Ipsa has started the drawdown of a R15.4-million loan facility granted by the Industrial Development Corporation (IDC).

The loan would be used to repay Ipsa subsidiary Newcastle Cogeneration’s indebtedness and to pay the final costs of installing two Jenbacher engines, which added some 4 MW of new capacity on site.

Works to install the engines would start later this month, while the planned commercial operation date was set for early September. Once the engines entered service, output would be sold under the newly extended medium-term power purchase programme contract with State-owned Eskom.

The loan would be repayable in 48 monthly instalments from April 1, 2016.

The company’s working capital remained tight and was being carefully managed until the expected receipt of the remaining balances owed by Rurelec from the sale of turbines. 

“We are very pleased that the IDC is now supporting us in the expansion of the plant at Newcastle. We hope that this will be the first step in Ipsa’s return to expansion of power generation capacity in South Africa,” Ipsa CEO Peter Earl said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION