Photo by: Duane Daws
The State-owned Development Bank of Southern Africa (DBSA) announced on Thursday that it had approved a loan and guarantees worth R2-billion to facilitate black economic empowerment (BEE) and community participation in the development of two peaking electricity plants collectively valued at R9.7-billion.
The projects are being pursued by a consortium led by GDF SUEZ and are regarded as the largest independent power producer (IPP) plants to be developed in South Africa to date, with a combined net capacity power of 1 005 MW. The consortium also comprises Legend Power Solutions (27%) of South Africa, Mitsui & Company (25%) of Japan and The Peaker Trust (10%).
A build, own and operate package was awarded by the Department of Energy to the consortium earlier this year and the project moved through the financial-close threshold in August.
The 670 MW Avon facility is being built near Shakaskraal, in KwaZulu-Natal, and will comprise four units, while the 335 MW Dedisa plant, which will be located in the Coega industrial development zone, of the Eastern Cape, will incorporate two units.
Each facility will also have on-site fuel and water storage for a continuous 45-hours of full-load operations. Commercial operation is expected at Dedisa in 2015 and at Avon in 2016.
DBSA South African financing executive TP Nchocho said the finance will ensure that the BEE and community participants are in a position to acquire equity stakes in the open cycle gas turbine facilities.
The bank allocated R560-million for empowerment financing and guarantees support to a BEE consortium, led by Legend Power, and a community trust, facilitated by GDF SUEZ.
Nchocho said the National Infrastructure Plan was providing ample opportunities for BEE and community groupings and that the DBSA intended to continue to play a leading role to support such participation.