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The Minister today committed government to a collaborative approach with the private sector in dealing with the current energy crisis in South Africa. At the DLO Africa Power Roundtable Conference today (26 March 2019), the Minister spoke positively about the imminent release of the final Integrated Resource Plan (IRP), the unbundling of Eskom and long-term need for renewable energy. Whilst the focus of the discussion at the DLO Africa Power Roundtable Conference is investment opportunities…
The Companies Amendment Bill released on 21 September 2018 for public comment, proposes a raft of amendments to the Companies Act. Section 45 presently provides that any financial assistance granted by a holding company to its subsidiary must be authorised by the board and the shareholders by way of a special resolution. If not the transaction is void and unenforceable. The Bill proposes that subsections (2), and consequently subsections (3) and (4) of section 45…
The amendments proposed in the Companies Amendment Bill 2018 have caught the attention of financiers and attorneys in so far as the provision of financial assistance (e.g. providing a loan, guaranteeing a loan, and securing any debt or obligation), to ‘its own subsidiary’ is concerned. The Amendment Bill proposes to amend section 45 by removing the requirements of the shareholder and director approvals contemplated by sub-sections 45(2), (3) and (4) in the scenario where financial…
On Wednesday, 20 April 2016 the Minister of Energy issued a determination setting out what bidders can expect to see in the request for proposal under the coal baseload cross border independent power producer procurement programme. The determination provides that: 3750 MW has been allocated to the cross border programme, which is an increase from the initial 2500 MW allocation proposed in December 2014; the offtaker for the electricity will be Eskom or any successor…
The Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP) released by the Department of Energy (DoE) allows bidders to bid cross border projects. We highlight some of the key features relating to cross border projects under the RFP. Cross border facility and cross border project A cross border facility is a facility which is situated in a country other than South Africa but provides power to South Africa (cross border facility).…
The Department of Energy’s (DoE) highly anticipated Coal Baseload Independent Power Producer Procurement Programme Request for Qualifications and Proposals (RFP) has introduced concepts that we did not see in the Renewable Energy Independent Power Producer Procurement Programme. We highlight a few of these concepts: Affected Projects The RFP provides for an Affected Project – these are potential projects that may experience difficulties in connecting to the relevant transmission or distribution system or obtaining water…
In December 2014, the Department of Energy (DoE) released the Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP). We highlight some of the key features of the RFP. Bid phases The RFP provides for more than one bid submission phase. The first bid submission date is 8 June 2015. The DoE anticipates running more than one bid submission phase per year. Projects submitted in the first bid submission phase must be capable…
After numerous press releases about the impending release of the Coal Independent Power Producer Procurement Programme (CIPPPP), the Department of Energy (DoE) released a formal request for compulsory registration for new generation capacity under the CIPPPP on 25 June 2014. Developers who wish to take part in this programme must register if they wish to submit bid responses once the Request for Qualification and Proposals is released. The Request for Registration is available at www.ipp-coal.co.za
The highly regarded IFLR1000 2014, guide to the world’s leading financial and corporate law firms, has ranked our banking and finance team Tier 1 for the 10th year in both the bank lending and project finance categories. The team has been active in South Africa’s renewable energy boom. The guide says: “With 42 banking specialists and 20 project finance experts, the tier 1 firm has long enjoyed a leading reputation in finance. This is true for South Africa and the…
The fourth edition of the RFP under the Renewable Energy Independent Power Producer (REIPP) procurement programme exempts returning compliant bidders from certain of the more onerous and time consuming qualification criteria of the RFP. In order to qualify for the exemption, a developer must re-submit a project, using the same project site, project layout and technology, and which was previously judged to be a compliant bid. Developers must bear in mind that lenders will want…