Xina Solar One CSP

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The 100MW Xina Solar One CSP plant reached financial closure in February 2015, as the loan agreement was signed. This geeenfeild BOO project worth of US$900 million would entail the development of concentrated solar power plant located 30 km east of the town of Pofadder, Khai Ma municipality, in the Northern Cape province. Xina Solar One would produce clean energy equivalent to power approximately 90,000 households and prevent the emission of more than 398,000 metric tons of CO2 per year when compared to a natural gas burning power plant. 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. In July 2014, the African Development Bank had approved a senior loan of US$142 million including a US$41.5 million concessional financing from the Clean Technology Fund to finance the construction of the 100MW Xina Solar One CSP. The estimated cost was US$900.8 million for the project. The project company was Xina Solar One RF Pty Ltd. and consisted of Abengoa (40%) and other three partners Industrial Development Corporation (IDC) of South Africa(20%), the Public Investment Corporation (PIC)(20%), and KaXu Community Trust(20%). Financing comprised US$648 million debt and US$252 million equity at the debt/equity ratio of 72:28. The debt financing was signed for 16 years under, 1) Senior term loan (US$308.64 million) by Development Bank of Southern Africa Ltd(US$52.46 million), Nedbank Ltd, ABSA Capital, FirstRand Ltd 2) AfDB loan (US$78.579 million) 3) IDCSA term loan (US$52.725 million) 4) Senior term loan- Commercial facility (US$131.644 million) by Nedbank Ltd, ABSA Capital, and FirstRand Ltd. 5) IFC term loan and (US$38.569 million) 6) AfDB USD denominated loan (US$41.499 million). On 25 June 2019, MIGA issued a $98.6 million guarantee against the risk of Breach of Contract for a period of 15 years. http://www.nersa.org.za/Admin/Document/Editor/file/Consultations/Electricity/Presentations/XiNa%20Solar%20One%20%20RF%20%28PTY%29%20LTD.pdf