Read the Digital Magazine

Scatec ASA has secured preferred bidder status for the Haru Battery Energy Storage System (BESS) project under South Africa’s third bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP)

The project, with a total capacity of 123 MW/492 MWh, has been awarded by the Department of Mineral Resources and Energy (DMRE).

Under a 15-year agreement, Scatec will be compensated for providing storage capacity to the National Transmission Company of South Africa (NTCSA), which will deploy the energy storage to help stabilise the national electricity grid.

Grid stability boost

The total capital expenditure for the project is estimated at ZAR 2.2 billion (approximately US$120mn), with about 80% of this allocated to engineering, procurement, and construction (EPC) contracts managed by Scatec. Financing will be structured with 90% non-recourse project debt and 10% equity from project owners.

“Today’s award reaffirms our standing as a leading renewable energy player in South Africa. We applaud the South African government’s commitment and dedication to the renewable energy procurement programmes. Battery energy storage will continue to play an important role in the energy transition, and we will continue to be at the forefront across our core markets,” stated Terje Pilskog, CEO of Scatec.

The Haru project builds upon Scatec’s experience with hybrid solar and storage solutions, such as the Kenhardt project and the ongoing Mogobe BESS development, reinforcing the company’s role in enhancing grid reliability through integrated battery storage.

“Dispatchable energy and grid infrastructure are now more important than ever, in the pathway to unlock the sustainability of South Africa’s current and future energy system,” said Alberto Gambacorta, general manager and executive vice-president, sub-Saharan Africa, Scatec.

Equity in the project will be shared among Scatec (50.01%), Stanlib’s Greenstreet and Redstreet Funds (44.99%), and a Community Trust (5%). Scatec will also be responsible for EPC, operations and maintenance (O&M), and asset management (AM) services.

According to the DMRE, commercial close is expected by the end of Q1 2026. The Haru BESS project will be located in South Africa’s Free State Province.

The towns of Ndabakazi, Qumrha, Bhisho, and Ngqushwa in South Africa’s Eastern Cape Province have transformed into major construction zones, driven by large-scale road development projects spearheaded by the South African National Roads Agency SOC Limited (SANRAL)

These initiatives are being rolled out across the Mnquma, Great Kei, Ngqushwa, and Buffalo City municipalities.

SANRAL, which is responsible for managing South Africa’s national road network, has invested over R3.5 billion (approx. US$189mn) into building and rehabilitating key routes in the region.

“The Ndabakazi Intermodal Interchange project that is currently under construction will go a long way in easing traffic flow, reduce road accidents, and provide job opportunities for the local community. Through this project, 240 jobs have been provided, empowering the local community with the necessary skills that are needed to work on it,” said Mbulelo Peterson, SANRAL’s provincial head for the Eastern Cape.

Peterson added, “Interns working on the project have also been taken through different training programmes that are designed to cater for their qualifications and training needs. We currently have two interns with a BTech Engineering qualification, one with an Advanced Diploma in Environmental Management, one with an S4 qualification in Civil Engineering, two with L2 Building Technology qualifications, and two interns with an N6 Civil Engineering that are working on the project.”

The Ndabakazi project began in February 2023 and is expected to be completed by August this year. It includes improvements to the N2 national road, construction of a new bridge, and development of a taxi rank.

Meanwhile, upgrades to the R63 national road between Bhisho and Qumrha are underway to revitalise surrounding towns. The R63 to N2 Qumrha T-Junction project started in May 2023 and is scheduled for completion in June 2025. It includes road widening, enhanced road markings, and upgraded intersections with dedicated right-turn lanes. By April, the project had generated 364 job opportunities, with training provided by accredited service providers.

Further improvements on the R63—from Bhisho to the N6 national road—will include 16 upgraded road intersections, 12 km of pedestrian walkways, 3 km of access roads, and 5 km of community service roads. A new taxi rank is also being developed in Peelton. According to Peterson, over 259 people have been employed on this segment, including five people living with disabilities.

Another key initiative is the upgrade of the N2 route from Ngqushwa to Makhana. The road is being widened to reduce congestion and accident rates. Works include the supply and compaction of subbase and base layer materials, installation of three new underpasses or culverts, and the extension of two existing structures.

“The project has created 419 permanent full-time job opportunities, and a total of 436 people have been trained on it,” Peterson noted.

SANRAL currently manages 5,885 km of road in the Eastern Cape—the longest portion of its 27,50 km national network.

Wabtec Corporation and Rio Tinto SimFer, a joint venture among the Government of the Republic of Guinea, Rio Tinto, and Chalco Iron Ore Holdings (CIOH), recently marked a significant milestone with the unveiling of the first Evolution Series ES43ACi locomotive for the TransGuinéen Railway

This delivery is part of SimFer’s 2024 locomotive order, supporting rail operations critical to the Simandou high-grade iron ore project in southeastern Guinea, which is Africa’s largest mining and infrastructure development initiative.

Charles Zimmermann, global head of projects for Rio Tinto, stated, “This locomotive symbolizes a major step in our strategy to connect the Simandou project to the world, while bringing opportunities to the people of Guinea. We are proud to see the first SimFer locomotive roll off the production line and begin to make its way towards Guinea. This locomotive and the entire TransGuinéen Railway are critical for transporting the high-grade iron from the mine to the global market. We are grateful for Wabtec’s contribution and the role it is playing in this unique project.”

Transforming Guinea's infrastructure 

The launch event brought together dignitaries from the governments of Guinea, India, and the United States, alongside leaders from Rio Tinto SimFer, Indian Railways, and Wabtec. Among the notable attendees were Minister Djiba DIAKITE, President of the Strategic Committee of the Simandou project, accompanied by Bouna SYLLA, Guinea’s Minister of Mines and Geology, as well as other members overseeing the project’s progress. The locomotive was presented in the striking blue and turquoise livery of La Compagnie de TransGuinéen, the joint venture company responsible for operating the Simandou Railway.

Mpilo Dlamini, Wabtec’s regional vice-president for sub-Saharan Africa, commented, “It is an honor to celebrate this milestone with our partners as we supply the advanced locomotives needed to meet the demands of the world’s largest untapped high-grade iron mine. This unveiling is a tribute to a global team that designed and built a locomotive specifically tailored for the Simandou project. These locomotives will efficiently facilitate the export of the mine’s critical minerals, while contributing to economic development in Guinea and providing access to services across the infrastructure corridor.”

The event also marked the first and largest export order of heavy-haul locomotives assembled at Wabtec’s facility in Marhowra, India. The ES43ACi model features a powerful 4,500-horsepower Evolution Series diesel engine, developed and manufactured in the United States, delivering industry-leading fuel efficiency and reliable performance in high-temperature conditions.

The Simandou mountain range is renowned for its exceptional iron ore deposits, with Rio Tinto estimating reserves of approximately 1.5 billion tonnes of high-grade ore. The broader project includes the construction of a 600 km multi-purpose railway linking the mine to a coastal port in the Forécariah prefecture, facilitating efficient mineral exports. This major international investment not only promises to unlock Guinea’s mineral wealth but also represents a transformative opportunity to accelerate economic growth and regional development throughout the country.

In a boost for South Africa’s construction sector, Nedbank Corporate and Investment Banking (CIB) is to accelerate its funding for affordable homes after securing a US$200mn loan from IFC, the World Bank’s private finance arm

IFC will provide Nedbank CIB with a senior loan of US$200mn to further scale lending to what it called ‘green buildings developers’ in South Africa’s residential, commercial, industrial and retail property sectors.

The partnership will help bridge the country’s housing deficit and support the transition to a lower-carbon economy, IFC noted in a statement.

Each building will be certified through IFC’s Excellence in Design for Greener Efficiencies (EDGE) or equivalent standard for energy and water efficiency and for the use of more sustainable construction materials.

At least half of all funds allocated to new residential developments will target the affordable housing segment.

IFC was also an investor in Nedbank CIB’s green bond issue of 2021, providing funding to support EDGE (or equivalent standard) certified buildings in the country.

“Under the bond, Nedbank CIB was able to deliver 1,790 EDGE-certified units, including 1,305 affordable homes,” said Vanessa Murray, divisional executive, property finance at Nedbank CIB.

“The new facility allows us to scale this impact even further, expanding the reach to other real estate segments and aligning with global green building standards while addressing the country’s housing and infrastructure needs.”

Murray said another example of the bond’s impact is illustrated by the creation of the bank’s in-house EDGE expert team, the only one of its kind in an African financial institution.

With IFC support, it has trained 21 Nedbank CIB staff and 21 clients, which enabled the certification of landmark projects such as the Mall of Africa, the largest EDGE-certified retail centre in the world.

“We are proud to partner with Nedbank CIB to expand certified green buildings in South Africa, including for affordable housing,” said Claudia Conceiçao, IFC’s regional director for Southern Africa.

“This collaboration drives South Africa’s shift to a low-carbon economy while improving lives and communities.”

South Africa aims to reduce its GHG emissions by 42% by 2025 and reach net zero carbon emissions by 2050, with green buildings designated as a major part of the solution to meet targets.

Globally, conventional buildings account for nearly 40% of energy-related GHG emissions.

Also read: Standard Bank IFC to support sustainable housing construction

Global law firm White & Case LLP has released a new report, Currents of Capital 2025, revealing strong investment momentum in water infrastructure, technology and services throughout 2024, with capital deployment set to rise further in 2025

The findings are based on a survey of over 300 senior leaders from across the water value chain, including utilities, multinational corporations, investment funds, engineering firms and technology providers in more than 20 countries.

According to the report, 30% of respondents invested over US$500mn in the water sector in 2024, with 15% allocating more than US$1bn.

Infrastructure funds led this activity, deploying an average of US$1.3bn each, nearly matching the average US$1.5bn from public sector entities.

Multinational corporations accounted for much of the remaining investment.

Looking ahead, 72% of organisations expect to increase their water-sector spending by up to 50% in 2025, while 4% anticipate even steeper increases.

This signals rising confidence in the sector, underscoring growing awareness of water’s importance to both economic security and sustainable development.

Investment priorities are shifting, with 40% of respondents now viewing water as their top investment focus and 33% targeting portfolio growth, moving away from maintenance-driven spending towards strategic expansion.

Technology is seen as a central enabler of this shift, with more than 60% citing AI as the most likely driver of transformation in the sector.

While Western Europe and North America remain the top destinations for capital deployment, geographic diversification is picking up pace.

Asian investors are expanding into Western markets to tap advanced water management technologies, while 29% of all respondents are exploring new regional opportunities.