The Project company shareholding is made up of Cennergi with a 95% stake and two Community Trusts that each own 2.5% of the project for a total of 5%.

Exxaro is a South African based mining group, listed on the Johannesburg Stock Exchange. It is one of the largest South Africa-based diversified resources companies, with interest in the coal, mineral sands, and iron ore commodities, and has assets and operations in South Africa, Australia, China and Congo Brazaville.

Tata Power is India’s largest integrated private sector power utility with an installed generation capacity of about 7,700MW and a presence in all the segments of the power sector: generation (thermal, hydro, solar and wind), transmission, distribution and trading. Tata Power is the leading private wind generation Company in India with an installed capacity of 222MW. Tata Power is listed on the Bombay Stock Exchange.

Community Trusts: As part of the South Africa’s Renewable Energy IPP program, projects are required to have a 5% stake owned by the communities within a certain radius of their location. The sponsors have facilitated the establishment of two trusts that will each own a 2.5% stake in the Project – the Amakhala Emoyeni Cookhouse Wind Farm Community Trust and the Amakhala Emoyeni Bedford Wind Farm Community Trust. The trusts will not be injecting any capital into the Project (with equity being fully funded by Cennergi), but will receive dividends that will be applied to local development and community upliftment projects. In addition the project company has committed to spending 1.5% of revenue on socio-economic development and 0,6% of revenue on enterprise development in the region.

The estimated total project cost is circa US$ 352 million. The proposed IFC investment is a loan of up to US$72 million. The loan will be committed in local currency (South African Rand).

70.70 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.70
Equity

* These investment figures are indicative

The Project is located between the towns of Bedford and Cookhouse in the Eastern Cape province of South Africa.

The Project area covers 13,000 ha of grazing land, incorporating portions of 5 different commercial agricultural farms, which have been leased. The Project foot print is estimated at not more than 75 ha (based on permanent alteration and construction plans).

The site is accessible through national roads (N1 and N10) from Port Elizabeth harbor, and eventually through a regional road - R350.

The project will: (i) promote additional employment and skills development during construction and operation; (ii) diversify South Africa''s energy mix; (iii) reduce carbon emissions by producing green, emission-free electricity; (iv) contribute to increased generation capacity in South Africa (as part of the planned system expansion); (v) contribute to the upliftment of local communities, through financial benefits flowing from a 5% carried shareholding to be held via two local community trusts; and (vi)provide positive demonstration effects in South Africa and the neighboring countries, as one of the initial large wind projects in the region.

(i) IFC will provide long-term financing in local currency, in a market that is experiencing tremedous growth in demand for long dated debt for infrastructure projects, while faced with potential liquidity constraints under a Basel 3 regulatory environment.
(ii) IFC involvement with the project will help Cennergi in adopting a structured framework to manage its social and environmental systems which will act as a benchmark for its subsequent projects.

The is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because a limited number of specific environmental and social impacts that may result from construction and operations can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.



A comprehensive EIA has been undertaken for the Project which included a thorough review of social issues. The Project has received all the necessary regulatory approvals and a detailed Environmental Management Plan (“EMP”) has been compiled for the construction, operation and decommissioning phases. During the environmental assessment process there were numerous opportunities for stakeholders to comment on the project and issues and concerns identified have been adequately addressed. Further, there have been no objections to the Project’s Environmental Authorization.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.