On December 14, 2017 and April 4, 2018, MIGA signed contracts in which it agreed to issue guarantees of $2,370,738.60 covering equity investments and $14,738,835.80 covering non-shareholder loans from CIGENCO SA (Pty) Ltd (“CIGenCo”) and Investec Bank Limited (“Investec”), respectively, for both the Ejuva One Solar Energy (Pty) Ltd and Ejuva Two Solar Energy (Pty) Ltd (“Ejuva One and Ejuva Two” or the Projects) in Namibia. The guarantees are issued for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance.
The proposed Projects entail the construction, ownership, operation and maintenance of two solar energy generating facilities, with a capacity of 5MW each, in the Omaheke region in Namibia. The electricity output will be sold to the Namibia Power Corporation (Pty) Ltd under a 25-year Power Purchase Agreement. Both Projects were awarded through the Renewable Feed in Tariff Program.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Namibia currently faces significant energy shortage, and has only been able to meet its energy needs through costly energy imports from neighboring countries. The expected development impact from the Projects include: (i) diversification of Namibia's energy mix; (ii) contribution to increased generation capacity in Namibia; (iii) reduction of carbon emissions by producing green, emission-free electricity; (iv) promotion of employment and skills development during construction and operation and; (v) providing positive demonstration effects for solar development in Namibia and neighboring countries.
The proposed project is aligned with MIGA’s priorities of facilitating investments that address climate change.