Name and Location
Department of Energy (DoE) peaker projects, South Africa.

Client
DoE.

Project Description
The project involves the construction of two greenfield open-cycle gas turbine (OCGT) power plants of 335 MW (Dedisa) and 670 MW (Avon), in the Eastern Cape and KwaZulu-Natal respectively, with a combined capacity of 1 005 MW.

Value
The total investment cost for the two plants is about €780-million. Full financial close of the two plants is expected shortly.

Duration
Commercial operation is expected to start at Dedisa in 2015 and at Avon in 2016.

Latest Developments
Energy multinational GDF SUEZ, together with its partners, has signed 15-year power purchase agreements (PPAs) with Eskom for the two OCGT power plants.

The consortium comprises GDF SUEZ (38%), Legend Power Solutions (27%), of South Africa; Mitsui & Company (25%), of Japan; and The Peaker Trust (10%), representing black economic-empowerment and community interests.

The OCGT investments have reportedly also attracted financing from several local banks.

The build, own and operate package awarded by the DoE includes the 335 MW Dedisa plant, in the Eastern Cape, and the 670 MW Avon facility, in KwaZulu-Natal, commonly referred to as the DoE peaker projects.

GDF SUEZ will establish an operations and maintenance company for the two plants, while the turnkey engineering, procurement and construction contractors have been named as Ansaldo Energia and Fata, of Italy.

Key Contracts and Suppliers
GDF SUEZ consortium, comprising GDF SUEZ (38%), Legend Power Solutions (27%), of South Africa; Mitsui & Company (25%), of Japan; and The Peaker Trust (10%), representing black economic-empowerment and community interests (build, own and operate package).

On Budget and on Time?
The peaker projects have been subjected to several delays, with the DoE having initially selected an AES-led consortium as the preferred bidder, before terminating talks in April 2008. Negotiations were subsequently entered into with the GDF SUEZ-led consortium, which was the only other respondent to the DoE’s initial request for proposals.

Contact Details for Project Information
DoE +27 12 406 7798 or email info@energy.gov.za.
GDF Suez investor relations, tel +33 1 44 22 66 29 or email ir@gdfsuez.com