Preferred bidders in place for South African coal power IPPs

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Preferred bidders in place for South African coal power IPPs

The South African Government has announced the selection of preferred bidders for the 557.3 MW Thabametsi and the 306 MW Khanyisacoal-fired power station projects, following the first bid of South Africa’s Coal Baseload Independent Power Producer Procurement Programme (CBIPPPP).

On one hand, the Thabametsi project development will be led by Japan-based Marubeni, which holds 24.5% of the project. The consortium also includes Kepco (24.5%), Royal Bafokeng Holdings KDI, Tirasano and the Public Investment Corporation (PIC).

On the other hand, the Khanyisa project will be developed by a consortium formed by ACWA PowerThebe Investments, Pele Natural Energy, Mazi Capital and Palace Group.

The bids include energy prices between ZAR797/MWh and ZAR809/MWh, both below the ZAR820/MWh limit set in the RFP launched in December 2014. However, the final prices will be fixed upon the completion of the financial closure, expected to be achieved in April 2017. 

The estimated investment involving both projects is ZAR40.2 billion (US$2.8 billion)

The Development Bank of Southern Africa (DBSA) and the PIC have committed to providing funding amounting ZAR1.2-billion and ZAR575-million for the construction of the Thabametsi, project. Meanwhile, the Industrial Development Corporation (IDC) has committed to providing ZAR1.2-billion for the Khanyisa project.

List of country news

Country news

  • September 26, 2016

    Standard Bank, OPIC And Wells Fargo Sign $300 Million Facility To Support Power And Infrastructure Projects In Africa

    Standard Bank of South Africa (SBSA), the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, and Wells Fargo Bank have announced a US$300 million facility to fund power and infrastructure projects in Africa. Read more
  • August 30, 2016

    Aveng announces disposal of 4 infrastructure projects

    Aveng Limited, a multi- disciplinary construction and engineering group, anchored in South Africa​, has reached an agreement for the disposal of four of its major infrastructure investments. Read more
  • August 05, 2016

    Eskom postpones a 20-year PPA with Redstone Solar Thermal Power until further notice

    A 20-year power purchase agreement (PPA) that Eskom was supposed to have signed with Redstone Solar Thermal Power Project (South Africa) has been postponed until further notice. Read more
  • July 20, 2016

    Noupoort wind plant project to reach Commercial Operations Date

    Mainstream Renewable Power has announced that its South African 80 MW Noupoort Wind plant has achieved its Commercial Operations Date (COD) on schedule and on budget, making it the first wind plant to successfully achieve operation. Read more
  • June 06, 2016

    Engie secures financing for Kathu CSP plant in SA

    French energy group Engie has achieved financial closure for the 100-MW Kathu concentrating solar power (CSP) project in South Africa. The company has lined up ZAR 9.2 billion (US$ 610 million) in financing. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.