Scatec achieves fin close on 60-MW solar project in Botswana

Norwegian renewable power producer Scatec ASA (OSL:SCATC) is getting ready to start building a 120-MW solar park in Botswana after reaching financial closing on the project’s initial phase.

The project will create the first utility-scale photovoltaic (PV) complex in the African nation, Scatec said on Friday. The company, which is the sole owner of the BWP-1.4-billion(USD 104.6m/EUR 95.8m) Mmadinare scheme, has achieved financial closing on its first 60-MW stage.

Planned to be installed in the Mmadinare district of eastern Botswana, around 400 km northeast of the capital Gaborone, the PV site’s initial phase will generate electricity for about 20,000 homes annually. Its output is contracted for 25 years by the Botswana Power Corporation (BPC).

Scatec will handle all engineering, procurement and construction (EPC) activities and will also serve as the project’s asset manager. Once the solar farm goes online, it will also take care of its operations and maintenance (O&M).

The 120-MW project will be funded by BWP 936 million of non-recourse project debt and equity. Financing for the first portion will be provided by the Rand Merchant Bank in Botswana and the World Bank’s International Finance Corporation (IFC).

(BWP 10 = USD 0.747/EUR 0.684)

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