SolarReserve Letsatsi Solar Plant

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Letsatsi Power Company was created to build, own and operate a 75 MW solar PV facility to be located in Soudrift, South Africa. The project company was a joint venture between the US-based solar developer SolarReserve, the South African companies the Kensani Group and Intikon Energy. Letsatsi Power Company was a consortium between: Kensani Capital Investments (Pty) Ltd, SolarReserve South Africa (Pty) Ltd and Oakleaf Investment Holdings (Pty) Ltd. Solar Reserve South Africa was a subsidiary of US-based SolarReserve. The project was awarded in a tender administered by the Department of Energy where a critical factor in the decision was the projected price of power. Contractual negotiations on the PPA and financing were to be completed by June 2012. The tender was open to all technologies, 53 bids were submitted of which 28 made it to preferred bidder status. These 28 project account for a total of 1,416MW if all are implemented. The EIA was passed (as was required for all bidders). The PPA would be for 20 years with the South African state utility Eskom. Total project cost was estimated at USD 300 million, with comissioning expected for 2014. Kensani Eaglestone Capital Advisory (Pty) Ltd was the financial advisor of the project. Rand Merchant Bank, a division of FirstRand Bank Limited, was the lead arranger and underwriter. In November 2012 the project reached financial close. The toal project cost was USD 280 million. 70 million was provided in equity by the sponsors, with an additional 10 million subordinated debt tranche. Debt was provided by the Development Bank of South Africa, Rand Merchant Bank and Old Mutual. http://www.pv-tech.org/news/consortiums_150mw_projects_awarded_preferred_bidder_status_by_south_african