Karoshoek Solar One CSP

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The 100MW Karoshoek Solar One CSP plant reached financial closure in February 2015, as the loan agreement signing occurred. This greenfield BOO project worth US$688.4 million would entail the development of concentrated solar power plant in Karoshoek Solar Valley, Upington, Northern Cape region of South Africa. It was a part of Window 3 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by Department of Energy (DoE). The DoE selected six solar photovoltaic, seven wind, two concentrated solar power, one landfill gas and one biomass project as preferred bidders in October 2013 for the third round of its REIPPP and the sponsors for each project were scheduled to simultaneously sign power purchase agreements with state utility Eskom and reach financial close on 30 July. The financial closure was delayed mainly due to the insufficient transmission infrastructure for the generation facilities. On July 22, DoE confirmed that the 17 projects involved in the third round of REIPPP would not reach financial close on 30 July 2014, as planned. Unlike in previous rounds of the REIPPP, where the signing of project documents and financial close happened simultaneously, none of the Window 3 deals was expected to close before January 2015 at the earliest, according to sources working on the transactions. The project company was Karoshoek Solar One Project composed of Emvelo(15%), Industrial Development Corporation(20%), ACS Cobra Energia(20%), Public Investment Corporation(20%), Investec(15%), and the Karoshoek Community Trust (10%). The project was financed at the debt/equity ratio of 68:32. The equity invested by the sponsor's amounted to US$218 million. The loan amount of US$470.4 million was provided by eight lenders with equal amount for each one under term loan of US$433 million, Debt Service Reserve Facility of US$27 million and Guarantee Facility of US$10.4 million, which are Standard Bank, ABSA Bank, Nedbank Group, Industrial Development Corporation of South Africa, Investec, Vantage Capital, Development Bank of Southern Africa, and Public Investment Corporation (SOC). http://www.nersa.org.za/Admin/Document/Editor/file/Consultations/Electricity/Presentations/Karoshoek%20Solar%20One%20%28Pty%29%20LTD.pdf IDC is a public entity