May 10 (Renewables Now) - The World Bank Group's political risk insurance division The Multilateral Investment Guarantee Agency (MIGA) has provided guarantees of USD 73 million (EUR 61.5m) for 360 MW of wind farms in South Africa.
The guarantees will back the construction, operation and maintenance of three wind parks, namely Noupoort, Khobab and Loeriesfontein 2. They provide protection for up to 15 years and cover equity and shareholder loan investments by Lekela Power BV and its unit Lekela Power Intermediate Holdings Pty Ltd, the World Bank said on Wednesday.
The covered risks include expropriation, transfer restriction and inconvertibility, breach of contract and war and civil disturbance.
The three wind farms are selling their output to local utility Eskom under 20-year power purchase agreements. The 80-MW Noupoort park has been generating electricity since 2016, while the other two wind farms, totalling 280 MW, were switched on at the end of last year.
The projects were awarded in the third round of South Africa’s Renewable Energy Independent Power Producers Procurement Programme (REIPPP). Lekela Power, the company behind the schemes, is a 60/40 joint venture between private equity firm Actis and a consortium led by Ireland-based wind and solar developer Mainstream Renewable Power.
(USD 1.0 = EUR 0.843)