MIGA to guarantee Scatec Solar's equity investments in South African solar projects
Scatec Solar ASA has announced that it has secured guarantees with the Multilateral Investment Guarantees Agency (MIGA), a member of the World Bank Group, covering its equity investments in six solar projects in South Africa.
The projects involve the construction, ownership, and operation and maintenance of photovoltaic power plants located in the Northern and Eastern Cape Provinces of South Africa, awarded to Scatec Solar through the government’s Renewable Energy Independent Power Procurement Program (REIPPP).
Three of the facilities, Kalkbult (75 MW), Dreunberg (75 MW) and Linde (40 MW) have been in operation since 2013 and 2014; while the Sirius (75 MW), Dyason’s Klip 1 (75 MW) and Dyason’s Klip 2 (75 MW) solar power projects reached financial close in April 2018. Construction is expected to commence in the fourth quarter of calendar 2018.
The guarantees total US$34.56 million and cover 90% of Scatec Solar's investments for up to 15 years against the risks of Breach of Contract and Transfer Restrictions and Convertibility.
