EIB Municipality Financing South Africa 7 March, 2018 European - - PowerPoint PPT Presentation

EIB Municipality Financing South Africa

7 March, 2018

European Investment Bank

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European Investment Bank

We focus on our key priorities

ENVIRONMENT INFRASTRUCTURE INNOVATION SME

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European Investment Bank

EIB Lending Policy

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EIB is providing municipality financing directly

• r indirectly (via financial institutions)
• EIB is not for profit maximising
• EIB passes on the benefit of its AAA credit rating
• Long term funding (up to 20 years) in ZAR, up to

5 year grace period

• EIB = catalyst ► encourages co-financing as
• max. 50% of funding is provided by EIB

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European Investment Bank

Challenges to Providing Infrastructure Finance to Municipalities/Projects

• Procurement/selection of private sector

partners

• Local content requirements explicitly stated in

tender documents

• Project preparation/Implementation capacity
• Fiscal and financial management capacity
• Post disbursement reporting

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Thank you!

For more information please contact us:

European Investment Bank Southern Africa Regional Office 27 George Storrar Drive, Pretoria, South Africa + 27 12 425 0460

www.eib.org

European Investment Bank

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Example - Khi Solar One CSP Tower

• 50 MW concentrated solar power plant
• Located in the Northern Cape
• JV Abengoa Solar SA (Spanish company) and Industrial Development Corporation

(South African SOC)

• Part of the SA Government’s Renewable Energy Independent Power Producer (REIPP)

programme

• Project costs = ZAR 3,910 million (EUR 382 million)
• Lenders are EIB, IFC, FMO, Proparco, IDC and DBSA
• EIB provided a EUR 50 million loan (13% of total cost)
• 15 year tenor

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Khi Solar One CSP Tower