South Africa Mainstream Renewable Wind Power (MIGA-a1d7765a09)

Countries
  • South Africa
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
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 22, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
International Lender to be Determined
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 137.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Disclosed by Bank Oct 24, 2016


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Project Description

According to bank documents, Lekela Power B.V. (Lekela), a partnership between Actis, an existing MIGA client, and Mainstream Renewable Power (Mainstream), a global wind and solar developer and IFC client, is seeking MIGA's cover of its equity and shareholder loan investments in five wind farms projects in South Africa against the risk of transfer restrictions, expropriation, breach of contract and war and civil disturbance, as part of the company's overall risk management policy.

The Projects include the construction and operation of five wind farms in the Northern and Western Cape Provinces in South Africa: the 140 MW Khobab wind farm (Khobab) and the 140 MW Loeriesfontein 2 wind farm (Loeriesfontein 2) projects located in adjacent sites; the 80.5 MW Noupoort wind farm project (Noupoort); the 140MW Kangnas wind farm project (Kangnas); and the 110MW Perdekraal East wind farm project (Perdekraal East). Associated infrastructure includes internal and external electrical connections, substations and transmission lines, access roads; and operations and maintenance (O&M) buildings.

It is important to note that Mainstream plans to develop solar energy facilities within or nearby some of the sites selected for the proposed wind Projects. The Environmental Impact Assessments and other supplemental studies cover E&S risk and impacts associated with these solar facilities where applicable. However, the solar projects are out of the scope of the Projects proposed for MIGA coverage. Therefore, E&S risks and impacts specific to the solar energy facilities are not discussed in this ESRS.

The following is a brief description of each wind farm:

Noupoort - 80 MW operational wind farm located in the outskirts of the town of Noupoort within the Umsobomvu Local Municipality in the greater Pixley ka Seme District Municipality, Northern Cape Province. The total study area of the Noupoort site is made up by three private farms totaling 7,632ha of which the total built footprint is approximately 1,873ha.

Khobab - 140MW wind farm under construction on the remainder of the FarmSous No. 226 near Loeriesfontein, Northern Cape Province.

Leoriesfontein 2 - 140MW wind farm on Portion 1 and 2 of the Farm Aan De Karree Doorn Pan No. 213 near the town of Loeriesfontein, Northern Cape Province. The site is approximately 10,400ha in size of which a smaller area will be required for the establishment of the proposed wind farm. The Khobab and Loerisfontein sites are adjacent to each other.

Kangnas - Proposed 140 MW wind farm located on farm Kangnas portion 3 of 77, farm Smorgenskaduwee remaining portion of 127 and farm Areb remaining portion of 75 in the Nama Khoi municipality. These farms are located approximately 48 km east of Springbok and are accessed via the N14. Land identified for the location of the development of the project is approximately 22,000ha with the project footprint of approximately 3600ha.

Perdekraal - Proposed 110 MW wind farm located within the jurisdiction of the Winelands District Municipality and Breede River Local Municipality approximately 32 km north of the town of Touwsrivier. The site is made up of two land parcels of total area of 6,347.37ha. The project area is estimated at approximately 3,100ha including the wind turbine generators, roads, and its associated infrastructure. The Perdekraal site to support 48 wind turbines of 3.2MW after a significant reduction in wind turbines to accommodate the sites environmental constraints.

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors
Contact Information

*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/