RMI4P Scatec 2 (IFC-45424)

  • South Africa
Geographic location where the impacts of the investment may be experienced.
Specific Location
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 68.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 294.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 11, 2022

Disclosed by Bank Aug 2, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the Project consists of the development, financing, construction, operation and maintenance of a greenfield fully dispatchable facility with a 50MWp contracted capacity consisting of a 180 MW solar photovoltaic (“PV”) combined with a 75 MW/380 MWh battery energy storage (“BESS”) located in Kenhardt in South Africa (Project “RMI4P Scatec 2” or “Kenhardt 2”). The electricity generated from the Project will be sold to South Africa’s state-owned electricity utility, Eskom through a 20-year Power Purchase Agreement.

Project Kenhardt 2 is adjacent to similarly sized projects Kenhardt 1 and 3; these Projects have been identified as preferred bids under the Risk Mitigation IPP Program (“RMI4P”) by the South Africa IPP Office on June 1, 2021.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project cost is estimated at US$[294] million, which the Company expects to finance with an 80% debt-to-equity ratio. The proposed IFC investment is up to US$68.0 million including (i) an A-Loan of up to US$50 million; and (ii) two IFC Blended Finance Senior Loans of up to US$18.0 million from the Canada Climate Change Program and the Clean Technology Fund (“CTF”) with a loan equivalent amount of hedging swaps of up to US$1.0 million. Standard Bank of South Africa (“SBSA”) will provide the balance of debt through a Parallel Senior Loan of up to US$165 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Project Company is Scatec Kenhardt 2, a special purpose vehicle to be incorporated in South Africa. The Company is 51% owned by Scatec ASA and 49% by Black Economic Empowerment (“BEE”) partner H1 Holdings.

Scatec ASA is a leading emerging markets renewable energy company. The Norwegian listed company is an experienced PV system integrator with experience in developing, financing, designing, constructing, and operating utility scale PV plants globally. Scatec ASA has recently acquired SN Power, a leading hydropower developer and IPP. The company has 3.3 GW in operation or construction on four continents.

H1 Holdings is a black-owned and managed infrastructure and development company based in South Africa with a strong focus on Environmental, Social and Governance (“ESG”). The company was founded in 2000. Scatec ASA and H1 Holdings’ collaboration on the Kenhardt Projects is a natural follow on from a successful cooperation on three projects of Round 4 of the Renewable Energy IPP Procurement Program.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Scatec ASA Client Energy

Contact Information
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Scatec ASA
Mitchell Hodgson
Senior Project Developer
+27 72 810 2006 
3 Dock Road, 2nd Floor North Wing, Waterway House, V&A Waterfront, Cape Town, 8001, South Africa


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