TRENDS & DEVELOPMENTS: PROJECT FINANCE 2020 – SOUTH AFRICA

Authors: Brigette Baillie and Biddy Faber

Trends & Developments in the South African market during 2020

South Africa has historically had a strong showing in the public-private partnership (PPP), concessions and independent power project (IPP) markets, having undertaken:

  • PPPs in the healthcare, prisons, transport infrastructure, serviced government office accommodation and biosciences sectors;
  • concessions in the toll roads and port sectors; and
  • peaking power and renewable energy IPP projects.

However, the last 12 months have seen little activity in these traditional PPP, concessions and IPP sectors, and the activity has been largely focused on project financings in the commercial and industrial sectors, with a number of financings being undertaken in respect of industrial operations (such as brown– and green-field factory developments of various sorts) and small scale captive renewable power solutions for industrial off-takers. Whilst the market has also seen the finalisation of the financing of some of the renewable energy projects from the fourth round of the Renewable Energy IPP Procurement Programme, these have been lags from the mass closing of those projects in 2018.

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AFRICA RENEWABLE ENERGY – ‘BANKABILITY’: A CHECKLIST FOR MARKET ENTRANTS AND SMALLER DEVELOPERS

Authors: Martin Kavanagh, Joanne Elson, Josh Attard and Beatrice McGuire

For Africa-focussed developers and sponsors in the ‘green’ energy market, enabling financing and ensuring that the contracts that they enter into are ‘bankable’ is of fundamental importance.

Following on from the release of our guide to the alternative funding options available to support renewable energy projects in Africa, we have produced a handy checklist which sets out the key considerations you should bear in mind when negotiating and entering into various project contracts, to help ensure that the impact of risk allocation on the overall “bankability” of your project is coherent and balanced.

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DEVELOPMENT FUNDS: A GUIDE TO ALTERNATIVE FUNDING OPTIONS AVAILABLE TO SUPPORT THE DELIVERY OF RENEWABLE ENERGY PROJECTS IN AFRICA

Authors: Martin Kavanagh, Joanne Elson, Josh Attard and Beatrice McGuire

For Africa-focussed developers and sponsors in the ‘green’ energy market, development funds (“DFs”) can offer a means to fast-track project development and enhance bankability.

To help provide you with a better understanding of the funding options available in the market, we have produced a handy guide which profiles several DFs suited to Africa-based projects, summarising their respective offerings, eligibility and proposal criteria and the application process. Continue reading