The South African Government has announced the selection of preferred bidders for the 557.3 MW Thabametsi and the 306 MW Khanyisacoal-fired power station projects, following the first bid of South Africa’s Coal Baseload Independent Power Producer Procurement Programme (CBIPPPP).
On one hand, the Thabametsi project development will be led by Japan-based Marubeni, which holds 24.5% of the project. The consortium also includes Kepco (24.5%), Royal Bafokeng Holdings KDI, Tirasano and the Public Investment Corporation (PIC).
On the other hand, the Khanyisa project will be developed by a consortium formed by ACWA Power, Thebe Investments, Pele Natural Energy, Mazi Capital and Palace Group.
The bids include energy prices between ZAR797/MWh and ZAR809/MWh, both below the ZAR820/MWh limit set in the RFP launched in December 2014. However, the final prices will be fixed upon the completion of the financial closure, expected to be achieved in April 2017.
The estimated investment involving both projects is ZAR40.2 billion (US$2.8 billion).
The Development Bank of Southern Africa (DBSA) and the PIC have committed to providing funding amounting ZAR1.2-billion and ZAR575-million for the construction of the Thabametsi, project. Meanwhile, the Industrial Development Corporation (IDC) has committed to providing ZAR1.2-billion for the Khanyisa project.