On December 11, 2014, a consortium led by Sonnedix closed all main project contracts for a solar photovoltaic power project in the Northern Cape of South Africa with a total generation capacity of 86MW, including, financing facilities agreements with Nedbank and Standard Bank, engineering procurement and construction (EPC) arrangements with Juwi Renewable Energies (Pty) Ltd, and a power purchase agreement with Eskom. Sonnedix undertook this project with Mulilo as a minority partner. The commencement of construction is scheduled for the first quarter of 2015.
Commenting on the closing, Franck Constant, President of Sonnedix said "This first closing in South Africa is a considerable milestone for our company. It confirms the growth strategy and added value of Sonnedix in new markets where clean renewable electricity is in high demand and cost effective compared to conventional power. Through this achievement, we are also pleased to reiterate our enthusiasm and dedication to make things happen as a leading global solar IPP for the Government of South Africa, and increasing our presence in the country's power supply industry for years to come."
The Lenders for the Project have also shown an outstanding commitment to the Project and the growth of renewables in South Africa. "Together with Standard Bank and our clients, Sonnedix and Mulilo," said Sakkie Leimecke Head of Energy at Nedbank Capital, "we are contributing to the vision of a South Africa which through the closure of this transaction will bring significant green power to the grid in record time." Rentia van Tonder, Head of Renewables for Standard Bank, confirmed "The buy-in by banks to the entire REIPP programme demonstrates the understanding by the country's financial institutions that innovative funding models can have a profound and positive influence on environmental sustainability."
"Our lenders have shown an outstanding level of commitment in our project. We have been delighted to work through the closing process with Mulilo, our South African partner. We also want to thank all the advisers involved in this development. We are looking forward to starting the construction of the project, and getting involved in other high quality projects of this type in the future." according to Olivier Renon, Sonnedix South Africa Country Manager.