SunEdison Announces R1.8 Billion in Funding for 60MW Boshof Solar Park
JOHANNESBURG, South Africa and BELMONT, California, Nov. 6, 2013
-- OPIC to provide US$185 million in foreign debt funding in for third South
JOHANNESBURG, South Africa and BELMONT, California, Nov. 6, 2013 /PRNewswire/
--Leading global solar energy services and technology provider SunEdison,
Inc., through its South African affiliate, (collectively "SunEdison")
(NYSE:SUNE) today announced it had secured R1.8 billion (US$185 million) in
foreign debt funding from the Overseas Private Investment Corporation (OPIC).
This amounts to 75% of the R2.4 billion project cost for the Boshof Solar Park
Project ("Boshof"), located in South Africa's Free State province near
Electricity generated by Boshof, with an installed capacity of 60MW AC, will
feed into the South African grid, under the terms of a 20-year power purchase
and implementation agreement signed with national power utility Eskom and the
Department of Energy. The plant is scheduled to begin generating electricity
in the fourth quarter of 2014.
Boshof is the first project in South Africa's Renewable Energy Independent
Power Producer Programme (REIPPP) to be supplied by a local South African
majority-owned photovoltaic (PV) module manufacturer. SunEdison will maintain
a 51% ownership stake in the project, with South African companies holding the
Support for the Local Economy and Community "Access to a reliable source of
energy is essential to addressing a wide range of development challenges from
producing food to educating students and building modern infrastructure," said
OPIC President and CEO Elizabeth Littlefield. "OPIC is pleased to be
supporting a project that will provide a clean and reliable source of
electricity and help stimulate economic development."
The Boshof project is expected to create approximately 280 jobs during its
construction and operational phases, and through the use of local
sub-contractors the project is expected to support over 1,000 jobs.
Approximately 50% of the project's total value will go to South African
manufacturers supplying local components and South Africa service providers
including the SunEdison AP90 Single Axis trackers that will be locally
manufactured for the project. Total procurement from black economic empowered
entities is estimated at R685 million (US$67.9 million).
"Helping improve developing economies by creating jobs is one of the many ways
our company is transforming lives through innovation," said Pashupathy
Gopalan, SunEdison Vice President and Managing Director for South Asia and
Sub-Saharan Africa. "Boshof is a landmark project which will benefit the
entire South African economy as it contributes to energy security and creates
green jobs throughout the value chain."
Over R200 million (US$19.7 million) is set aside for projects that will
transform the community by improving access to education and healthcare,
supporting enterprise development and other projects to improve the quality of
life for residents throughout the Free State and Northern Cape.
Growing Commitment to South Africa Construction has begun on two other
utility-scale projects developed by SunEdison in Limpopo province, Soutpan and
Witkop, which together total 58MW contracted capacity. As with Boshof, these
projects rely on local subcontractors to help improve the overall economy and
create employment opportunities.
Reliable Investment The Government Employees Pension Fund's (GEPF) Acting
Principal Officer Joelene Moodley said "We are increasing our investment with
SunEdison because we view the Boshof project as a secure investmentfor our
members and pensioners. This is why we feel comfortable nearly doubling our
investment in SunEdison's South African projects by R312 million (US$30.8
million) for the Boshof Solar Park. We believe this a safe place for us to
invest and the project is aligned with GEPF's mandate to back infrastructure
projects that promote economic growth and job creation."
"SunEdison has extensive experience in delivering reliable and economical
solar energy solutions for our customers around the world, in both the public
and private sector. We are using that experience and our innovative approach
to technology and business development to create new markets. Being part of
this historic milestone for South Africa is very rewarding," said Gopalan.
About SunEdison SunEdison is a global leader in semiconductor and solar
technology. SunEdison's semiconductor business has been a pioneer in the
design and development of silicon wafer technologies for over 50 years. With
R&D and manufacturing facilities in the US, Europe and Asia, SunEdison enables
the next generation of high performance semiconductor devices. SunEdison's
solar business develops, finances, installs and operates power plants,
delivering predictably priced solar energy and services for commercial,
government and utility customers. SunEdison's common stock is listed on the
New York Stock Exchange under the symbol "SUNE."
Certain matters discussed in this press release are forward-looking
statements, including that the plant is expected to begin generating
electricity in September 2014, that the project will create approximately 280
jobs and 1,000 indirect jobs; that R144 million will be distributed for
socio-economic upliftment, and R57 million will support enterprise
development. Such statements involve certain risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Potential risks and uncertainties include normal
commissioning risks attendant to large scale solar projects, delays or
interruptions in construction, deployment or activation; the timely
availability of required permits and authorisations for projects from
governmental entities and third parties; changes in applicable regulatory
requirements and incentives for production of solar power; and general
business and economic conditions, including seasonality of the industry, and
other risks described in SunEdison's filings with the United States Securities
and Exchange Commission. These forward-looking statements represent
SunEdison's judgment as of the date of this press release. SunEdison
disclaims, however, any intent or obligation to update these forward-looking
Contact: Media: Dawn Brister, SunEdison U.S.A., +1 (650) 453-5685,
firstname.lastname@example.org; Jocelyn Newmarch, Ellojo Writers for SunEdison SA,
+27(0)84-462-1111, email@example.com; Mark Sutherland, Elasticity for
SunEdison U.S.A., +1 (314) 913-0674, firstname.lastname@example.org; Investors/Analysts:
Chris Chaney, SunEdison, +1 (636) 474-5226, email@example.com
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