Actis South Africa Solar
This summary covers an application made by Okavango Biology Mauritius Limited of Mauritius (Okavango Biology) to cover equity and shareholder loan investments totaling up to US$45 million in two solar power plants, Konkoonsies II and Aggeneys (the Project), currently under construction in the Northern Cape of South Africa. Okavango Biology is a subsidiary company of the Actis Energy 4 LP fund, controlled by Actis of the United Kingdom (Actis). Coverage is being requested against the risks of Transfer Restriction and Inconvertibility, Expropriation, War and Civil Disturbance, and Breach of Contract.
The Project scope consists of the construction, ownership, operation, and maintenance of the two solar power plants, which have a combined installed capacity of 132 MW. The electricity output will be sold to Eskom SOC under a 20-year power purchase agreement. The Project was awarded under Round 4 of the South African Renewable Energy Independent Power Producers Procurement program (REIPPP).
The Project is categorized as B under MIGA’s Click. for the Project’s Environmental and Social Review Summary.
Renewable independent power producers have grown rapidly in the past five years. Although South Africa remains heavily dependent on coal, the government plan is to have over 20 GW of renewable capacity by 2030.
Supporting the development of these solar power plants fits in with the Government of South Africa’s renewable energy plan of helping develop clean, renewable and low-cost electricity in the country. The Project is expected to (i) support the diversification of South Africa’s energy mix, (ii) contribute to increased generation capacity, (iii) reduce carbon omissions by producing green, emission-free electricity (iv) create employment opportunities during construction, and (v) contribute to local community development through financial benefits generated by the Project.
MIGA’s support for this Project is aligned with the agency’s strategic priority in supporting investments in climate change and in continuing to increase MIGA’s activities in Sub-Sahara Africa.
MIGA supports its clients (as defined in MIGA Policy on Environmental and Social Sustainability) in addressing environmental and social issues arising from their business activities by requiring direct investment clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities. MIGA support to Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations as per the requirements of Performance Standards 1.
In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for MIGA. The CAO is mandated to address complaints from people affected by MIGA-guaranteed business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of MIGA.
Independent of MIGA management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of MIGA’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of MIGA-guaranteed business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of a MIGA-guaranteed business activity. Complaints can be submitted to the CAO in writing to the address below:
International Finance Corporation
2121 Pennsylvania Avenue NW
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400