juwi Renewable Energies has secured three contracts from African Infrastructure Investment Managers (AIIM) to build and operate three solar projects in South Africa, totaling 250MW.
These are engineering, procurement and construction (EPC) and operation & maintenance (O&M) contracts. The solar projects are part of the South Africa’s REIPPPP Programme Round 4.
The total value of the contracts is ZAR3bn ($203.7m). As per the deals signed, AIIM’s IDEAS Managed Fund holds 50.01% stake in the three solar projects.
The IDEAS Managed Fund is considered to be one of the largest domestic infrastructure equity funds in South Africa with ZAR13.2m ($896635) under management. Debt funding for these projects is being provided by Absa and Nedbank.
The three projects include the 86MW Waterloo Solar Park located near Vryburg in the North West Province, the 78MW Bokamoso Solar Park located near Leeudoringstad in the North West Province and the 86MW Droogfontein 2 Solar Park, located near Kimberley in the Northern Cape.
juwi managing director Greg Austin said: “We are delighted to have closed the EPC and O&M contracts and the associated agreements with AIIM, together with their equity and debt partners. For juwi, this represents a major milestone as the addition of this 250MW triples our existing portfolio of solar PV projects constructed and operated in South Africa.”
After the construction of the projects is completed, juwi will operate and maintain the solar plants for a period of 5 years.
The agreements come in the wake of South African Energy Minister Jeff Radebe R56bn ($3.8bn) investment commitment announced this April, contracting independent renewable energy power producers to add 2.3GW of renewable electricity to the national grid in the next five years.
The three projects are expected to create nearly 1600 jobs during the construction phase.
Austin said: “The RE sector brings real socio-economic benefits to South Africa, offering significant job creation and infrastructural development to facilitate economic growth and attract investment to the region.”