The shareholders of Xina CSP will be Xina Ltd (holding 40%), IDC (holding 20%), GEPF-REI (holding 20%) and BBBEE (holding 20%).

Xina Ltd is a wholly owned subsidiary of Abengoa Solar S.A which, in turn, is a wholly owned subsidiary of Abengoa. Abengoa is a global company founded in 1941 and headquartered in Spain, with 24,748 employees and a presence in 50 countries. The company is focused on: (i) engineering and construction, including solar-thermal plants, solar-gas hybrid plants, conventional generation plants, transmission lines and water infrastructures; (ii) infrastructure concessions, through the operation of solar plants, transmission lines, co-generation plants and desalination plants; and (iii) industrial production, which includes commodity risk products, such as biofuels, and recycling steel dusts. Abengoa Solar has 1,223MW of solar power capacity in operation (including CSP and photovoltaics) and 430MW under construction in the US and South Africa. As of Annual Report 2013, Abengoa had total assets of €21.1 billion and total equity of €1.9 billion. The company had total revenues of €7.4 billion, EBITDA of €1.4 billion and net income of €101 million for the year. Abengoa is publicly traded on the Madrid and Barcelona Stock Exchanges, with a total market value of €2.7 billion. Some of the company’s shares are also listed on the NASDAQ Global Select Market in the form of American Depositary Shares.

The IDC (http://www.idc.co.za) is a self-financing, South African state-owned development finance institution that provides finance to promote industrial and entrepreneurial development. It was established in 1940 to promote economic growth and industrial development in South Africa focusing on the importance of a dynamic private sector in securing and stimulating rapid and sustainable economic growth, creating employment and reducing poverty. As of March 2013, the IDC had capital and reserves of approximately ZAR 92 billion and had equity interests in over 300 companies across diverse economic sectors. IDC funding approvals amounted to above ZAR 13.1 billion during financial year 2013. In the past 5 years, the company has invested approximately 66% of the total financing in expansion and start up projects, and has publicly committed to investing ZAR 100 billion over the next 5 years, of which ZAR 17 billion is targeted towards “green industries”.

The Government Employees Pension Fund (“GEPF”) (http://www.gepf.gov.za) is Africa’s largest pension fund. It has more than 1.2 million active members, in excess of 300 000 pensioners and beneficiaries, and assets worth more than R1 trillion. The GEPF is a defined benefit pension fund that was established in May 1996 when various public sector funds were consolidated. The core business, which is governed by the Government Employees Pension Law (or GEP Law), as amended, is to manage and administer pensions and other benefits for government employees in South Africa.

The PIC (http://www.pic.gov.za) is the only investment management company in South Africa that focuses exclusively on the public sector. Established in 1911, PIC is wholly owned by the Government of South Africa and is responsible for the management of government employees’ pension funds. As of March 2013, assets under management amounted to ZAR 1.4 trillion which included Equity (45%), Capital Market (35%), Cash & money (9%), Offshore Assets (6%), Property (4%) and Isibaya (1%).

Community Trust: The Sponsors are committed to enabling BBBEE ownership in the Project and facilitating local economic development through their implementation. In order to achieve these objectives the Sponsors are targeting the allocation of approximately 20% of the shareholding to a “Community Trust”. The Community Trust used for Xina CSP will be the Kaxu Community Trust, an existing trust that was previously established to enable BBBEE ownership in Kaxu CSP. Dividends flowing to the Community Trusts over the life of the Project will be applied towards local economic development beneficiary projects. The IDC is coordinating the establishment of the Community Trusts and arranging the required equity funding.

The total Project costs for the CSP plant is estimated at ZAR 9.5 billion (approximately US$867 million equivalent). The proposed investment includes:
An A Loan of up to ZAR 500 million (approximately US$47 million equivalent) for IFC’s own account;
A mobilization of a senior loan from the Canada Climate Change Program of up to the ZAR equivalent US$20 million.

52.15 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	5.0
Guarantee
Loan	47.15
Equity

* These investment figures are indicative

The Xina CSP project will be located in the Northern Cape province of South Africa, approximately 30 km north east of the town of Pofadder, in the Khai Ma Municipality. The Northern Cape Province is characterized by flat, desert type landscapes with high solar irradiation, making it suitable for CSP generation. The plant will be located close enough to the Orange River to access water required for steam generation and mirror cleaning.

Kaxu CSP South Africa (Pty) Ltd, held 51% by an Abengoa Solar Affiliate, is the owner of a 3,507.6 ha site. The Facility will be located on a portion of 490 Ha of that site. The site has been rezoned by the Khai Ma municipality specifically for the construction of the solar plant. Kaxu CSP South Africa (Pty) Ltd will enter into a long-term lease with XiNa CSP South Africa (Pty) Ltd, for the land required for the Facility.

The site coordinates are Latitude 28.9S and Longitude 19.6E.

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) and; (v) contribute to the upliftment of local communities, through financial benefits flowing from a 20% shareholding to be held via a community trust.

(i) IFC will provide long-term financing in local currency, in a market that is experiencing tremendous growth in demand for long dated debt for infrastructure projects, while faced with potential liquidity constraints under a Basel 3 regulatory environment. Furthermore recent foreign exchange movements against the ZAR have created a funding gap in the financial plan.
(ii) Given the nascent nature of the Renewable Energy IPP market in South Africa, IFC is able to share its global experience with its co-lenders and sponsors, strengthening the project structuring.

The proposed CSP plant is a Category B according to IFC’s Policy and Performance Standards on Environmental and Social Sustainability because a limited number of specific environmental and social impacts that may result from their construction and operation can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental and social issues associated with CSP power plants include the developers’ and contractors’ capacity to undertake adequate mitigation measures commensurate with the adverse impacts, and in consultation with locally affected populations, during both construction and operations phases, particularly with regard to: i) surface water resources; ii) fair, safe and healthy working conditions for both construction and operations work force; iii) wastewater, solid and hazardous waste; iv) handling and storage of hazardous/harmful chemicals and v) impacts of construction and operations on the natural flora and fauna, and the human populations surrounding the project area.

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.