Johannesburg, 13 March 2018: GAIA Infrastructure Capital Limited (GAIA) supports the signing of project agreements of the 27 Renewable Energy Independent Power Producer Procurement Program (REIPPPP) and the power purchase agreements as announced by the Honourable Minister of Energy Jeff Radebe on 8 March 2018.
This signature would provide much needed certainty on government’s energy policy for South Africa and has the potential to unlock multibillion rand investment in the infrastructure sector and facilitate job creation in line with the National Development Plan (NDP).
Prudence Lebina, CEO of GAIA, says, “the private sector has been ready to invest in the local energy space for a long time, and government’s commitment will assist in creating a fertile environment for investment by the private sector in the local energy industry. I echo Minister Jeff Radebe in that “if energy is seen as central to economic growth it can be the catalyst to build investor confidence and attract investment in the Country and on the Continent.”
“For a long time, we have spoken about the positive impact renewable energy has on job creation and economic growth, social upliftment and rural development, and greens the economy. GAIA is a long-term investor in infrastructure, of which energy is a part of, and we believe that the signature of purchase agreements would be opportune for our investment pipeline which includes a focus on the REIPPP,” adds Lebina.
GAIA has investments in two renewable projects, the Dorper Wind Farm in the Eastern Cape and Noblesfontein Wind Farm in the Northern Cape. Both these projects were part of Round 1 REIPPPP.The company has an identified pipeline amounting to some R4 billion.This includes exclusive and near term deals in renewable energy sector, transport, water and sanitation. Approximately half of the opportunities, by value, are in the solar and wind power sectors with the remainder in water and sanitation and transport sector.
“GAIA has experienced the potential of renewable energy projects as an investment as there is a clear linkage to the greening of the economy, job creation, and social upliftment, all of which are important elements for responsible investment. The vehicle provides an opportunity to the South African savings industry to match their long-term liabilities with cash income streams. The stable and predictable returns offered by these investments have attracted interest in the private sector,” says Lebina.
GAIA is an infrastructure investment holding company listed on the Main Board of the JSE Limited. The Company listed in November 2015 as a special purpose acquisition company with an initial equity capital raising of R550 million. In December 2016, the Company completed its initial acquisition of a minority interest in the Dorper Wind Farm, and in September 2017, the acquisition of stake in the Noblesfontein Wind Farm was completed.GAIA invests in diversified large-scale energy, transport and water and sanitation operational and/or near operational infrastructure assets offering a target investment return of CPI +6% before fees. GAIA’s objective is to provide investors with an uncorrelated, predictable, inflation-linked and long-term yielding investment whilst providing investors with liquidity for their investments. GAIA intends building a portfolio of operational infrastructure assets that present low investment risk and are income generating. GAIA provides an investment vehicle for investors to access attractive Southern African infrastructure growth opportunities.
For more information:
Ms. Prudence Lebina
CEO: GAIA Infrastructure Capital
Tel: +27 11 684 1230
Mr. Themba Hlengani
Tel: 2711 026 1608 | 076 561 5067