Project ID: 31248

ICBC signs R20 billion funding agreement with Standard Bank for the Renewable Energy Independent Power Producer (REIPP) Procurement Programme (linked to #58655)

Commitment amount

$ 1006763906.0

Constant 2017 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Umbrella project

This project is classified as an "umbrella" project, and is connected to related projects.

Summary

Funding agency [Type]

Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]

Recipient

South Africa

Sector

Energy (Code: 230)

Flow type

Loan

Concessional

Vague

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

Vague (Official Finance) (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Commitment (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2013

Description

In April 2013, the Industrial and Commercial Bank of China (ICBC) and the Standard Bank of South Africa signed a R20 billion (approximately USD 2.2 billion) funding agreement to finance renewable energy projects. The two banks will jointly supply debt financing to firms that are granted preferred bidder status under the country’s Renewable Energy Independent Power Producer (REIPP) Procurement Programme. The financing will go towards agreements where the Standard Bank is or will be assigned as a lead arranger of the transactions. The agreement was structured to provide funding in Rands from the capital ICBC accrues from its shareholding in the bank (ICBC is a 20% shareholder in Standard Bank), though it is uncertain how much funding was provided by each bank individually. It is reported that ICBC invested in this project in order to facilitate Chinese investments in South Africa. An objective of the partnership is to facilitate the entry of investors into South Africa and for the development of renewable energy resources in South Africa. Since November 2011, as part of the REIPPP, more than 6,327 MW from 102 renewable energy projects have been awarded. By the end of 2016 the project calls for nearly 3GW connected to the grid.A potential sub-project of the REIPP with financing from the ICBC is recorded in project #58655.

Additional details

As the exact recipient firms of the REIPP Programme are unknown, the Government of South Africa is coded as the recipient.For the time being, AidData has estimated the contribution of the Chinese state-owned bank by assuming that the two lenders contributed equal amounts (R10,000,000,000) to the loan syndicate.

Number of official sources

2

Number of unofficial sources

11

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Details

Cofinanced

Yes

Cofinancing agencies [Type]

Standard Bank of South Africa Ltd. [Private Sector]

Receiving agencies [Type]

Government of South Africa [Government Agency]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No