Greenhouse Gas Emissions Reduction and Energy Sector Development Project (South Africa) (NDB-greenhousegasemission)

Countries
  • South Africa
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.
Bank Risk Rating
FI
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.
Borrower
The Development Bank of Southern Africa (“DBSA”)
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ NDB website

Updated in EWS Jul 26, 2018


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Project 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
  • 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.

Contact Information

*Contact information not provided at the time of disclosure*