The three plants have a total capacity of 190MW and the increased ownership further strengthens the company’s position in the South African market.
Scatec Solar is currently ramping up construction of three new solar plants in South Africa with a total capacity of 258MW. The six solar power plants are expected to generate a combined 1,000GWh of power annually that are sold under 20-year power purchase agreements.
Furthermore, Scatec Solar ASA has secured guarantees with MIGA (Multilateral Investment Guarantees), a member of the World Bank Group, covering its equity investments in the six South African solar power plants. The guarantees cover 90% of investments by Scatec Solar for up to 15 years against the risks of Breach of Contract and Transfer Restrictions and Convertibility.
Scatec Solar CEO Raymond Carlsen said: “These MIGA guarantees are a cost-efficient way of mitigating risk in an important part of our asset portfolio. We are working with multilateral finance institutions across emerging markets and with these agreements we are again demonstrating how strong partnerships are improving the robustness of our long-term investments.”
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Over the last three decades, MIGA has directly supported over $50bn in investments for over 845 projects in 111 developing countries.
Source: Company Press Release
