This summary covers an equity and shareholder loans /quasi equity investments from Mettle Solar Investments Pty Limited (“Mettle”) into Metdecci Energy Investments (Pty) Ltd (“Metdecci”) or the Project) in Namibia. Mettle applied for MIGA’s guarantees to cover its equity and shareholder loans /quasi equity investments of about US$ 5 million, for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance.
The Project entail the construction, ownership, operation and maintenance of a 5 MW solar energy generating facilities, outside of Karibib town in the Erongo region of western Namibia. The electricity output will be sold to the Namibia Power Corporation (Pty) Ltd under a 25-year Power Purchase Agreement. The Project was awarded through the Namibia’s Renewable Feed in Tariff (REFIT) Program.
The Project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click for the project’s Environmental and Social Review Summary.
Namibia currently faces a significant energy shortage, and has only been able to meet its energy needs through costly energy imports from its neighboring countries. The expected development impact from the Project 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 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.