Nedbank withdraws funding for new South African coal IPPs

Nedbank lived up to its slogan as the ‘green’ bank in its decision to withdraw its funding of two proposed new coal-fired power stations in South Africa, Thabametsi and Khanyisa.

The decision fits with the banking group’s commitment to “green” funding, responsible lending and supporting sustainability initiatives. The bank says its initial proposal for funding the construction of the Thabametsi and Khanyisa independent power producers (IPPs) has lapsed and will not be renewed.

This comes after a corporate policy announced in early 2018 that the bank would no longer fund the construction of any new coal-fired power plants beyond its existing commitments to fund Thabametsi and Khanyisa, which were included as part of the new coal IPP programme in the South African Department of Energy’s draft integrated resource plan for electricity (Draft IRP 2018).

The proposed Thabametsi 557MW coal-fired power station, which would be largely owned by Japan’s Marubeni and South Korea’s Kepco, was planned to be built near Lephalale in Limpopo, while the Khanyisa 306MW power station was to be sited near eMalahleni in Mpumalanga. The biggest shareholder of Khanyisa would be Saudi-owned Acwa Power.

Nedbank says that it would prefer to offer the financing for projects in energy…

Read the full story on the Daily Maverick website.

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