KHI SOLAR ONE TOWER PROJECT

Construction and operation of a greenfield solar power tower with a 50 MW net power-generating capacity.

Khi Solar One is a 50 MW steam receiver power tower concentrated solar power (CSP) plant with approximately two hours of steam storage and will have an overhead tie-line connection to the grid. The project will be located approximately 15 km south-west of the town of Upington in the Northern Cape province in South Africa.

If the project were located in the EU, it would fall under Annex II of the EIA Directive (85/337/EEC) as amended, requiring the competent national authority to determine the need for an Environmental Impact Assessment (EIA). Under South African Law, the project requires a mandatory EIA including initial scoping and public consultation. During appraisal, the Bank will ensure that the project complies with the Bank's principles and standards as regards environmental and social issues.

The project has followed private procurement rules and the main contractors and suppliers have already been selected. However, the South African power sector is not liberalised and access to the electricity market is only possible through specific tendering procedures. The Bank will appraise the procurement process followed to confirm compliance with the Bank's Guide to Procurement.

This operation is covered by the EU Political Risk Guarantee for EIB loans outside the EU.