On Wednesday, the Development Bank of Southern Africa (DBSA) officially announced that they have financed 21 renewable energy projects since the launch of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This announcement comes two weeks after the release of the DBSA’s financial results, which indicated that the bank had delivered a net profit of ZAR2.6 billion ($218 million) and sustainable earnings of ZAR1.4 billion ($72.8 million) in the 2015/2016 financial year.
According to the Bank, during this 12-month period ending March 2016, the DBSA delivered ZAR28 billion ($2 billion) across the total infrastructure value chain, with development assets now standing at ZAR77 billion ($5.6 billion) and total assets at ZAR82 billion ($5.9 billion).
This announcement followed shortly after the announcement of South Africa’s Gas to Power Project Information Memorandum (PIM).
DBSA plays part in added capacity
Lucy Chege, General Manager for Energy Financing at the DBSA, said: “The DBSA’s achievements in the renewable energy space confirms our role as an instrumental partner in developing integrated solutions for and on behalf of the Department of Energy’s IPP office and National Treasury.”
Through the funds, the Bank is responsible for an installed 2,512MW of clean power, which has contributed significantly towards the energy crisis challenges across South Africa.
The Bank said in a statement: “Approximately ZAR14.9 billion ($1 billion) of commitments have been made by the DBSA to support government programmes in the energy space.
These extend to include the construction of two IPP Peaking power plants in South Africa – Avon 670MW and Dedisa 335MW, in the Eastern Cape Province.
“Approximately ZAR2, 167 billion ($145.7 million) has been provided to enable the participation by BBBEEE players and local community trusts in various energy projects. Funding has been provided in the form of senior debt, mezzanine debt and BEE funding,” the Bank noted.
Adding: “The bank has also financed numerous gas fired plants and infrastructure throughout the continent as part of regional integration efforts to address the power crisis. Regional projects include Cenpower, Ghana powership and funded the Bulk Oil Storage Terminal of Ghana.”
Chege said: “The energy portfolio accounts for the banks largest exposure and this signals our commitment to working with all partners and promoting the DBSA’s regional integration and infrastructure programme.”