- The Department of Electricity and Energy (DEE) and National Treasury have announced updated timelines for the implementation of South Africa’s Independent Transmission Projects (ITP) Programme, a flagship initiative aimed at attracting large-scale private investment to expand the country’s national electricity grid.
The government assures that the ITP Programme remains on track to unlock significant capital for transmission infrastructure and is being executed with a strong emphasis on bankability, transparency, and credibility — essential factors for sustaining long-term investor confidence.
To ensure greater market alignment and certainty, government is synchronising the ITP Phase I procurement process with the establishment of the Credit Guarantee Vehicle (CGV), a key financial instrument being developed by National Treasury with support from the World Bank Group.
The sequencing of these two initiatives is considered critical to provide bidders and lenders with full clarity on the guarantee mechanisms that will support the financial close of ITP transactions.
According to the updated schedule, the announcement of Pre-Qualified Bidders (PQBs) will take place by 15 December 2025, alongside the release of a draft Request for Proposal (RFP). This will allow bidders to comment on commercial and bankability terms before the final RFP is published no later than the third quarter of 2026.
This structured, consultative approach — the first of its kind for South Africa’s transmission sector — aims to:
- Ensure the RFP reflects market realities, lender expectations, and international best practices.
- Identify and address technical and commercial challenges early.
- Strengthen investor confidence through transparency and predictability.
- Enable competitive, high-quality bids and smooth financial closure.
- Reinforce South Africa’s global reputation for credible and world-class energy procurement.
While the revised schedule introduces additional time to the process, DEE and Treasury emphasised that this deliberate approach will enhance coordination and bankability, safeguarding both the integrity of the RFP and the CGV framework.
Progress on the Credit Guarantee Vehicle
National Treasury, in partnership with DEE, the World Bank Group, and other development partners, has made substantial progress on the CGV’s technical, legal, and financial design.
The CGV will operate as an independent, privately capitalised non-life insurer, regulated by the Prudential Authority. It will provide credit guarantees for qualifying infrastructure projects, starting with ITP Phase I.
Current efforts are focused on finalising capital commitments and completing licensing requirements, with the CGV expected to become operational in the second half of 2026. Treasury described the facility as a “groundbreaking innovation” in South Africa’s infrastructure finance framework, intended to mobilise private capital and reduce reliance on sovereign guarantees.
Commitment to credibility and reform
Both the DEE and National Treasury reaffirmed their shared commitment to delivering a credible, transparent, and globally benchmarked procurement process.
“By aligning the ITP and CGV timelines, government is ensuring that this first-of-its-kind programme is technically sound, commercially bankable, and institutionally aligned,” the departments said in a joint statement.
The ITP Programme remains a cornerstone of South Africa’s energy reform agenda, designed to drive investment, localisation, and economic renewal while advancing the country’s transition to a more secure and sustainable energy future.
Author: Bryan Groenendaal
