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.
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.
*Contact information not provided at the time of disclosure*