A consortium led by Mainstream Renewable Power last night received the award for Best Wind Deal, Middle East and Africa at the annual Project Finance International (PFI) awards dinner held at the Hilton, Park Lane in London. Considered to be the most prestigious event in the global project finance calendar, over 800 of the world’s most senior and successful market professionals gathered to celebrate industry excellence.
The Mainstream consortium received the accolade for 360 megawatts of wind projects it won under Round 3 of the South African Government’s highly successful Renewable Energy Procurement Programme. The three wind farms, which are located in South Africa’s Northern Cape, represent a combined investment of US$760m, reached financial close in early 2015 and are currently in construction with the first completed plant due to start commercial operation in July this year.
Accepting the award, Mainstream’s Director of Onshore Procurement, Construction and Operations, Barry Lynch (pictured) said: “This award is particularly significant for Mainstream as we continue our focus on growth markets globally where we are delivering large quantities of dependable, renewable energy at a price which undercuts new fossil fuel generation. In addition to that, we are bringing these power plants into commercial operation faster than coal-fired plants. Our Noupoort wind farm started construction early last year and will begin delivering power into the system over the coming months.”
Mainstream has developed from greenfield, and been awarded more megawatts than any other developer under the South African Government’s Renewable Energy Procurement Programme. Between Rounds 1 and 4 it has been awarded eight projects with a combined capacity of nearly 850MW, most recently the 140MW Kangnas wind farm (Northern Cape) and 110MW Perdekraal wind farm (Western Cape) in Round 4, which are expected to reach financial close later this year.
The debt for the current projects has been arranged and underwritten by Barclays and the Development Bank of Southern Africa. A consortium of Murray & Roberts and Conco is the construction contractor and Siemens Wind Power is supplying and installing the wind turbines. Simmons & Simmons and Bowman & Gilfillan acted as Lenders’ Legal Advisor. Fasken Martineau and Stoel Rives acted as Sponsor Legal Counsel.
Top Row (L to R): Terry Ryan (Mainstream Renewable Power), John Sayers (Simmons and Simmons), Bernard Kiernan (Mainstream Renewable Power), Adam Treki (Mainstream Renewable Power), Barry Lynch (Mainstream Renewable Power), Lucy Chege (DBSA), Colin FitzRandolph (Mainstream Renewable Power), Blaize Vance (Fasken Martineau), Tsitsi Musasike (DBSA) / Bottom Row (L to R): Patrick Warren (Mainstream Renewable Power), Daniel Marshall (Barclays), Mpho Mokwele (DBSA), David Maisela (DBSA)
The equity members of the consortium consist of:
- Mainstream Renewable Power and Actis (Energy Fund 3) through its African joint venture Lekela Power.
- Thebe Investment Corporation; one of South Africa’s most established broad based BEE Investment management companies (advised by Bridge Capital).
- The IDEAS Managed Fund, managed by Old Mutual Investment Group, one of Africa’s largest independent investment managers.
- Futuregrowth Asset Management, a leading investor in developmental assets.
- Genesis Eco-Energy in partnership with Lereko Metier Sustainable Capital.
- Local Community members through established community trusts.