Sertum Energy Namibia (Pty) Ltd.
This summary covers a proposed non-shareholder loan investment from Investec Bank Limited (“Investec”) of South Africa into Sertum Energy Namibia (Pty) Ltd (“Sertum” or the Project) in Namibia. The lender has applied for a MIGA guarantee to cover their debt of up to $15 million for a period of up to 15 years against the risks of Breach of Contract, Transfer Restriction, Expropriation, and War and Civil Disturbance.
The proposed project entails the construction, ownership, operation and maintenance of solar energy generating facilities, with a capacity of 5MW, in the Erongo region in Namibia. The electricity output will be sold to Namibia Power Corporation (Pty) Ltd under a 25-year Power Purchase Agreement. The Project was 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 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 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.