The Redstone solar project is being developed by Santa Monica, California-based SolarReserve and ACWA Power, a Saudi Arabian electricity producer. It will be located in the Northern Cape.
The funds from OPIC will be used as an investment guarantee to build and operate the solar plant. The project is financed by R5.6-billion in debt and R2.4-billion in equity from both local and international lending institutions, according to SolarReserve's website.
OPIC is part of Power Africa, an initiative founded by President Barack Obama in 2013 to support the growth of energy access in sub-Saharan Africa. The financial institution has pledged to provide $1.5-billion of financing and insurance to energy projects across the region by 2018.
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