The South African government has provided an update on the timelines for the launch of the inaugural procurement of independent transmission projects (ITPs), as well as additional insight into the design of the so-called Credit Guarantee Vehicle (CGV) being set up to derisk the programme for investors and government itself.

In a joint statement, the Department of Electricity and Energy (DEE) and the National Treasury announced that the prequalification tender, or request for qualifications (RFQ), would be issued by the end of July to “shortlist capable, experienced, and financially sound bidders to proceed to the next stage of the ITP procurement process”.

This RFQ step will be followed by the release of a formal request for proposals by end of November and is being undertaken to “safeguard the integrity and bankability of the ITP programme”.

The statement also confirmed that the first phase of ITP procurement would be managed by the Independent Power Producer Office, which has hitherto overseen the procurement of new generation capacity, mainly in the form of wind and solar.

On March 28, Electricity and Energy Minister Dr Kgosientsho Ramokgopa Gazetted a Ministerial Determination under Section 34 of the Electricity Regulation Act opening the way for the procurement of 1 164 km of 400 kV powerlines and 2 630 MVA of transformers across seven projects in three provinces, including the Northern Cape, the North West province and Gauteng.

Having closed on May 22 the receipt of submissions on draft Electricity Transmission Regulations, the statement also confirmed that the DEE was currently reviewing the comments before finalising and promulgating the final version.

The draft regulations placed emphasis on creating a transparent mechanism for the National Transmission Company South Africa to fully recover costs through transmission supply agreements, and also emphasised value-for-money procurement while outlining risk allocations.

The statement also provides more detail on the CGV that is being developed in collaboration with the World Bank to support the mobilisation of private and development capital, including through the Just Energy Transition Partnership (JETP), without further burdening the national accounts through guarantees.

“The CGV will be incorporated as a private company in South Africa, operating in the form of a non-life insurance company with all the required licences and approvals, and regulated by the Prudential Authority.

“A draft Information Memorandum (formal offer via private placement of shares in the CGV) which provides granular details on how the CGV will operate has been developed and will be shared with our development partners.

“Following the sharing of the Information Memorandum, the team will in July 2025 engage in one-on-one discussions with the identified development partners who expressed interest in participating in phase one of the CGV.”

The statement said that it was envisaged that the CGV would become operational in 2026. 

The National Treasury and the DEE reaffirmed that a multi-phase ITP roll-out was envisaged and that government intended to leverage the procurement programme to support industrialisation.

“The ITP is not just an infrastructure intervention, it is an economic stimulus, an industrial enabler, and a symbol of South Africa’s readiness to partner.

“We invite developers, manufacturers, financiers, and technology leaders to partner with us, to invest, to build, and to power South Africa’s energy future towards national growth and resilience,” the statement reads.