The Development Bank of Southern Africa (DBSA) has won the African Renewable Energy Programme Award.
The award was presented to the DBSA, in London, in the UK, by Project Finance International (PFI), an institution that organises the global awards.
The achievement signifies the DBSA’s growing involvement in energy project financing and raises the institution’s profile among its peers in the industry, PFI said in a statement published on Thursday.
The PFI panel of judges said the DBSA beat other strong contenders primarily because of the successful financial closure and implementation of several projects it financed in Round Four of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The DBSA provided project financing for over 14 renewable energy projects in Round Four of the REIPPPP, including the Sirius Solar and the Dyasons Klip 1 and Dyasons Klip 2 photovoltaic projects developed by Scatec Solar.
The Scatec Solar projects were funded through a combination of equity and debt raised from the DBSA – about R1.1-billion – commercial banks and local asset managers.
Other notable projects include the 140 MW Roggeveld wind project for which the DBSA provided R951-million in debt funding and the 102 MW Copperton wind project, for which the DBSA provided R1.2-billion in debt funding.
“This award is significant because the deals survived contractual delays in the signing of the power purchase agreements,” DBSA project finance head Mpho Mokwele said.
DBSA is currently involved in 33 renewable energy projects for which the development investment is about R17-billion.
The bank has also created a project development facility to assist with bankable feasibility studies and has enabled broad-based black economic empowerment parties and local community trusts to participate at an ownership level in the projects.
Black South Africans own, on average, 31% of projects that have reached financial close.
“The DBSA remains committed to the growth of renewable energy and the promotion of local ownership and community involvement, which are all crucial to long-term success and sustainability,” said DBSA energy, environment and information and communication technology head Lucy Chege.Creamer Media Senior Deputy Editor Online