Renewable Energy Sector Development Project (NDB-RENEWABLEENERGYSECTOR)

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
FI
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
Mar 31, 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
Industrial Development Corporation of South Africa Limited (IDC)
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)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 80.18 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.
Currency conversion note:
Bank reported ZAR 1150 million
Converted using 2019-03-31 exchange rate.
Bank Documents
Primary Source

Original disclosure @ NDB website

Updated in EWS Jul 15, 2024

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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.

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

The proposed NDB loan through the modality of a two-step loan will be used by IDC for on-lending to its identified sub-projects including solar, biomass and wind energy sectors.

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

NDB will provide a loan without sovereign guarantee to the NFI, IDC, with an amount up to ZAR 1.15 billion. NDB's financing may not exceed 50% of sub-project costs, unless otherwise agreed by NDB.

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 the New Development Bank, Industrial Development Corporation of South Africa Limited (IDC), a National Financial Intermediary (NFI) in South Africa, has been an important player towards realizing these goals, being a significant financing provider in South Africa’s energy sector and facilitating private sector participation in the sector. In this context, the Renewable Energy Sector Development Project is designed to help the economy shift towards a more sustainable energy path, through facilitating investments in renewable energy that will contribute to power generation mix and avoidance of carbon dioxide emissions in South Africa.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Industrial Development Corporation of South Africa Ltd. Client -

How it works

How it works