IFC Provides P620 Million Loan To Phikwe Solar Project Contractor

The World Bank, through its private investment arm the International Finance Corporation (IFC) will be backing the multi-million pula Phikwe solar project developed by Norwegian renewable energy firm Scatec. 

The Project consists of developing, financing, constructing, operating, and maintaining a 50 MWac solar PV plant at Selebi Phikwe in Botswana. 

The project will supply power to Botswana Power Corporation under a 25-year Power Purchase Agreement (“PPA’), signed on August 31, 2022. Additionally, the Project was bid under a process conducted by BPC in October 2020 and awarded to Scatec in August 2021 and is estimated go cost $60 million.

IFC intends to provide a loan of up to $24 million equivalent, to be split between USD and Pula-linked financing. In addition, IFC is also mobilizing up to BWP 300 million from the South African bank Rand Merchant Bank (“RMB”), with the balance to be covered by equity from Scatec.

Located close to Selebi Phikwe town, the infrastructure will interconnect to the 220kV transmission line between Selebi Phikwe and Phokoje substation.

The Phokoje substation is situated on Southern African Power Pool north-south 400kV transmission backbone providing the project a stable point of interconnection as well as a strategic location in respect of the SAPP. 

The Project will cover an area of 121ha and will have an installed peak capacity of 60MW, making use of single-axis trackers and bifacial solar panels.

Information sourced from The Projects Magazine.

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