juwi’s projects are optimized for the best lifetime costs or savings for clients. We design using Tier 1 technology and state-of-the art principles taking into account project life.
Our funding approach is flexible – we welcome direct capital investment but are happy to provide bespoke funding solutions including non-recourse project funding through Power Purchasing Agreements (PPAs) where appropriate.
PPA’s are a way to fund infrastructure projects without any requirement for capital from the client.
PPA’s use “Project-Finance” or “non-recourse funding”. A Special Purpose Vehicle (SPV) is set up to own the assets and ring-fence the assets and risk, offering the off taker the opportunity to co-invest.
Contracts are designed to be ‘take-or-pay’ which requires careful design effort to ensure the project does not overproduce.
Termination clauses are key to bankability.
The SPVs are structured to take into account procurement (BBBEE), IFRS16 and tax optimisation.