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INVESTOR FACT SHEET 4. Blyde River Hydro Power Project

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INVESTOR FACT SHEET 4. Blyde River Hydro Power Project INVESTOR FACT SHEET 4. Blyde River Hydro Power Project A. PROJECT SECTOR: Renewable Energy I. INTRODUCTION The Blyde River (Happy River) or Motlatse River, is a river in Mpumalanga Province South Africa. It flows north through the steep-sided valleys and ravines of the Mpumalanga Drakensberg (Dragon Mountains), before it enters the Lowveld Escapement – one of Africa’s prime wildlife and game reserves destinations. The Blyde River Hydro Power Project is a small Hydo-Electric Project involving the re-engineering and re-establishment of an existing hydro-electric power plant. II. LOCATION South Africa – Mpumalanga Province – Thaba Chweu Municipality III. PROJECT DESCRIPTION This renewable energy project is situated in the environmentally sensitive Blyde River Canyon Nature Reserve of Mpumalanga Province. This area attracts over one million tourists a year to the natural wonder of the surrounding Bourke’s Luck Potholes, Gods Window, the Blyde River Canyon and the world famous Kruger National Park. Mpumalanga Province is an attractive Green Energy investment destination in support of the tourism infrastructure and local communities. The existing but non-operational Belvedere Hydro-Electric Power Plant was commissioned in 1911 to supply power to the historic gold mining town of Pilgrim’s Rest. This 2,000 Kw power station was at its time the largest hydro-electric power station in the Southern Hemisphere and Pilgrim’s Rest was electrified before the City of London. The Blyde River Hydro Power Project entails the design, engineering and commissioning of a new hydro-power station to generate renewable green energy to be supplied the surrounding tourism attractions and adjacent communities. The project takes advantage of the existing Blyde River dam which is suitable for such a Hydro-Electric Power Plant. The green electricity power generated will enhance local economic development and biodiversity conservation while contributing to climate change mitigation. The project will also benefit land claimants and neighbouring communities of Blyde River Canyon Nature Reserve. An investment opportunity has been identified for an Independent Power Producer (IPP) to build and operate the Blyde River Hydro Power Plant through a secure power purchase agreement from ESKOM – the State Owned South African National Power Utility. B. KEY PROJECT METRICS I. FEASIBILITY STUDY Funding is required to conduct a detailed feasibility study. II. EXPECTED CONTRACTUAL / COMMERCIAL STRUCTURE Joint Venture / BOT / IPP III. EXPECTED CAPITAL COST REQUIREMENT ZAR 100 million IV. FINANCIAL FEASIBILITY STUDY Pending Investor Partner C. CONCLUSION The Blyde River Hydro Power Project has been developed by the Mpumalanga Tourism and Parks Agency (MTPA) – an Agency of the Mpumalanga Provincial Government. This Investment Project is ideal for a Chinese Investment Partner with technology and experience in Hydro-Electric engineering projects. The small scale of the project is well suited for a large company who wants to establish their credentials and open up market share in South Africa through a low risk but high profile Green Energy Project. Contact Details Mr Paresh Pandya Ms Liying Dong Manager Investment Promotion Investment Advisor Mpumalanga Economic Growth Agency Mpumalanga Economic Growth Agency (MEGA) (MEGA) Mobile : +27 82 905 4938 Mobile: +27 83 469 6899 e-mail : [email protected] E-mail: [email protected] 16/09/2016 .
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