KaXu Solar One (MIGA-14323)

Countries
  • South Africa
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Voting Date
Apr 26, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Atlantica Yield PLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 112.00 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 @ MIGA website

Updated in EWS Aug 19, 2021

Disclosed by Bank Feb 28, 2019

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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.

Atlantica Yield PLC (Atlantica) is seeking MIGA guarantees for its equity and shareholder loan investments in the KaXu Solar One power plant ("the Project") in South Africa. The Project is a part of the first round of South Africa Renewable Energy Independent Power Producer Procurement program (REIPPP), a program designed to introduce renewables into the country's energy system through a bidding process.

The Project is an operational concentrated solar power (CSP) plant of 100 MW installed capacity, located 50 km north-east of Pofadder, in a desert location adjacent to the Orange River, in the Northern Cape Province, close to the border with Namibia. The plant involves a field of pivoting concave mirrors tracking the sun and concentrating the reflected sunlight onto a closed-circuit network of piping that contains synthetic oil as the heat transfer fluid. The heated oil cycles through a heat exchanger creating steam from water drawn from the Orange River, to drive a steam turbine. The electricity generated is transmitted through a high voltage substation for dispatch to the grid. The plant design also includes a molten salt thermal energy storage system that allows for extended electricity generation of up to 3 hours at full capacity for controlled dispatch during cloud cover or to meet evening electricity demand.

Plant infrastructure also includes an on-site substation, maintenance areas, offices and an access road. The power plant has a direct connection to the Eskom power grid, 5km away, via a 132kV overhead transmission line from the onsite sub-station.

The plants are located in a remote location and there are no residences or residential areas within the vicinity. The site lies adjacent another concentrated solar power project, the 100 MW Xina Power Plant.

The Project is operated by an affiliate of Abengoa S.A (the O&M Contractor).The Xina plant is also operated by Abengoa. Although the sites are completely separated and secured, there are some shared resources involving fire protection and emergency response.

IFC issued a loan to the Project in 2014.

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

Atlantica, based in the United Kingdom, owns and manages a portfolio of assets in the energy sector, including solar, wind, and hydro power projects, and transmission lines in Latin America and Africa.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Atlantica Yield PLC Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works