Second Mulilo-Sonnedix Prieska Solar PV Plant

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The Second 86MW Mulilo-Sonnedix Prieska solar PV reached financial closure in February 2015, as the loan agreement was signed. This BOO project worth of US$133 million would entail the development of solar PV power plant located at 50km south west of Prieska. 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 financing comprised US$33 million equity and US$100 million debt at the debt/equity ratio of 75:25. The project company was Mulilo-Sonnedix Prieska solar PV (Pty) Ltd. and the equity sponsors were Sonnedix Solar Africa Holdings (60%, 100% owned by Sonnedix Africa B.V.), Mulilo Sonnedix Solar Enterprises (20%, 100% owned by Mulilo Group Holdings), Mulilo Prieska Solar Community Trust (5%), and Ixowave (15%). The debt funding was provided by Nedbank, lending US$65 million (R755 million) to this project, alongside Standard Bank (US$35 million), which was taking 35% of the senior debt. http://www.nersa.org.za/Admin/Document/Editor/file/Consultations/Electricity/Presentations/Mulilo%20Sonnedix%20Prieska%20PV.pdf Financing info insufficient. Calculation was done through Debt funding (Nedbank)-> Debt funding (Standard Bank -> Debt equity/ratio -> Equity Funding -> Total Estimated Cost