This summary covers proposed non-shareholder loans and interest rate swaps from Investec Bank Limited (“Investec”); and equity and shareholder loans /quasi equity investments from Mettle Solar Investments Pty Limited (“Mettle”), into both NCF Energy Pty Limited (“NCF”) and Tandii Investment Pty Limited (“Tandii”) or the Projects) in Namibia. MIGA guarantees are expected to cover: Investec’s sum of non-shareholder loan and interest rate swaps of about US$15 million; and Mettle’s sum of equity and shareholder loans /quasi equity investments of about US$ 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 proposed Projects entail the construction, ownership, operation and maintenance of two solar energy generating facilities, with a capacity of 5MW each, in Engoyi village, Okatope 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 Namibia’s Renewable Feed in Tariff (REFIT) Program.
The Projects are 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 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 Projects are aligned with MIGA’s priorities of facilitating investments that address climate change.