Avon OCGT

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This project was South Africa's first IPP tender. In 2007 AES was originally awarded the projects, but pulled out due to the disagreements with the Department for Minerals and Energy. Then the project was offered to Suez, which was the second preferred bidder in the original tender. The IPP project would involve the development of two oil-fired open-cycle gas turbines operating as peaking plants. A 670MW plant would be located in Avon, near Shakaskraal, in KwaZulu-Natal, and the second plant of 342MW capacity, would be located in the Coega Industrial Development Zone, in Port Elizabeth, Eastern Cape(See #7960 Dedisa OCGT for more). Power Purchase Agreements (PPAs) for both were signed in June 2013 with state utility Eskom under 15 year PPAs, awarded by the Department of Energy on a Build, Own, Operate (BOO) basis. In parallel, two Implementation Agreements (IAs) with South Africa’s National Department of Energy were signed for each power plant. Investec was co-ordinating mandated lead arranger and sole documentation bank providing senior debt in a syndicate of six financial institutions to the two IPPs. The other lenders were Absa Capital, DBSA, RMB, Nedbank, and South African institution Sanlam. The Avon Site is located near Shakaskraal which is 45km North-East of Durban in the Kwa-ZuluNatal Province. The plant would be a Gas Turbine Open Cycle Power Plant based on 4 x AE 94.2 GTs supplied by Ansaldo Energia. The total capacity of the Avon Open Cycle Gas Turbine (OCGT) Peaking Facility would amount to 670 MW, and the facility would comprise 4 Units (Turbine and Generator). Facility lay-out design allowed for future change in primary fuel to gas and for future conversion to combined cycle technology (CCGT). Construction had already begun and commercial operation was expected to start at Avon in 2016 Legend Power Solutions (Pty) Ltd Percentage:27% Debt/Equity ratio is 92.443:7.557 total project cost (debt and equity) is divided by the ratio of MW per power plant