On June 28, 2019 MIGA issued guarantees to Sustainable Power Solutions Investments (Proprietary) Limited (formerly Mettle Solar Investments Pty Limited) for their equity investments into: (i) NCF Energy Pty Limited; and (ii) Tandii Investment Pty Limited (together, the Projects) in Namibia, for an amount of of US$567,000 each (US$1,134,000 for both Projects), for a period of up to 15 years, against the risks of Transfer Restriction, Expropriation, Breach of Contract, and War and Civil Disturbance.[i]
The 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.
Environmental Categorization
The Projects are category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Development Impact
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 Projects are aligned with MIGA’s priorities of facilitating investments that address climate change.
[i] The guarantee was terminated on August 27, 2023.
