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The Multilateral Investment Guarantee Agency (MIGA) is issuing an $18.9 million guarantee in favour of the independent power producer (IPP) BTE Renewables. MIGA is a subsidiary of the World Bank Group.
The Multilateral Investment Guarantee Agency (MIGA) is issuing an $18.9 million guarantee in favour of the independent power producer (IPP) BTE Renewables. MIGA is a subsidiary of the World Bank Group. The guarantee covers BTE’s equity investment in MBP, a 75 MWp solar photovoltaic power plant in the Northern Cape province of South Africa. Until recently, the solar plant was 60% owned by South African company Sonnedix Solar, which was bought out by independent power producer (IPP) BTE.
The MBP solar power plant was built under the third tender window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). The guarantee, which covers a period of 15 years, protects BTE Renewables against the risks of transfer restrictions, expropriation, war, civil unrest, and breach of contract. MIGA is providing this guarantee as part of its efforts to promote the energy transition in South Africa.
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With this guarantee, MIGA is facilitating private investment that will contribute to the financial viability of the electricity sector and demonstrate the secondary market value of solar power plants in South Africa.
