EIB Municipality Financing South Africa 7 March, 2018 European Investment Bank
European Investment Bank European Investment Bank 2
European Investment Bank We focus on our key priorities ENVIRONMENT INFRASTRUCTURE INNOVATION SME European Investment Bank 3
EIB Lending Policy European Investment Bank 4
EIB is providing municipality financing directly or 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 European Investment Bank 5
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 European Investment Bank 6
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 7
Example - Khi Solar One CSP Tower European Investment Bank 8
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 European Investment Bank 9
Recommend
More recommend