2 December 2011
Anglo-African bank Investec and the European Investment Bank (EIB) are to establish a €100-million renewable energy funding facility that will promote clean energy generation and energy-efficiency initiatives in South Africa.
The initiative is in line with the South Africa’s recently announced Green Economy Accord, a partnership between the government, business and trade unions that aims to create jobs by promoting the development of the country’s “green” economy sector.
The announcement was made on Wednesday in Durban, where the 17th Conference of the Parties (COP 17) to the UN Framework Convention on Climate Change is currently under way.
Investec to evaluate projects
According to an EIB statement, the facility will support South African renewable energy projects and energy-efficiency activities, with Investec responsible for selection of projects and subsequent investment.
The €100-million will be available for disbursement to selected opportunities over three years from the start of the programme.
“Each project will be evaluated by Investec’s sector specialists and credit committee, in accordance with additional investment criteria set by the European Investment Bank, to ensure that projects deliver sound environmental benefits and abide by accepted business, environmental, social and labour practices,” the EIB said.
‘Could transform SA’s renewable energy efforts’
Investec’s Fazel Moosa said the facility “has the potential to help the government and industry transform South Africa’s renewable energy efforts.
“Investec’s significant global and local experience in project finance for the renewable energy space, as well as its current investment pipeline, were instrumental in bringing this deal together.”
Moosa added that Investec were proud to be partnering on the facility with “the largest international non-sovereign lender, with a presence across the globe.”
EIB vice-president Plutarchos Sakellaris said that ensuring reliable electricity supply and more efficient use of energy was essential for economic growth around the world.
“Working closely with Investec the European Investment Bank looks forward to addressing energy challenges in South Africa,” Sakellaris said.