Early Warning System

Countries

South Africa

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

New Development Bank (NDB)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

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."

Borrower

The Development Bank of Southern Africa (“DBSA”)

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Energy
Finance

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 300.00 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.

Loan Amount (USD)

$ 300.00 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)

$ 600.00 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 @ NDB website

Updated in EWS Jul 11, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

The objective of the Project is to facilitate investments in renewable energy that will contribute to power generation mix and reduction in carbon dioxide emissions in South Africa, in line with the South African Government’s Integrated Resource Plan 2010 and its target of reducing greenhouse gas emissions as articulated in the National Development Plan 2030.

The Greenhouse Gas Emissions Reduction and Energy Sector Development Project is designed with financing from New Development Bank (NDB) to the Development Bank of Southern Africa (DBSA) to support renewable energy projects in South Africa and help the economy to shift to a more sustainable energy path through structural transformation of the energy sector with emerging renewable technologies.

The proposed NDB loan will be in the form of a two-step loan of up to USD 300 million to DBSA, which in turn will be on-lent to its identified subprojects, including the wind, solar, and biomass energy sectors.

The Project is estimated to be implemented over 15 years between 2018 and 2033. Suppliers for the Project will be selected through competitive and transparent bidding process.

Investment Description

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

New Development Bank (NDB)

NDB will provide a loan without sovereign guarantee to the national financial intermediary DBSA with an amount up to USD 300 million. NDB financing may not exceed 50% of subproject’s costs, unless otherwise agreed by NDB.

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

The Development Bank of Southern Africa (Financial Intermediary)

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.

According to Bloomberg, Development Bank of Southern Africa Limited (DBSA) operates as a government development bank. The Bank offers socio-economic development to improve the life of the people by providing financial and non-financial investments in the social and economic infrastructure sectors. Development Bank of Southern Africa serves customers in South Africa.

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*