Cape town: The government has reiterated its commitment to the Independent Transmission Projects (ITP) Programme, which is aimed at unlocking large-scale investment in transmission infrastructure critical for the expansion of the electricity grid.
According to South African Government News Agency, a joint statement by the Department of Electricity and Energy and National Treasury emphasized that the ITP Programme remains on track to stimulate significant investment in transmission infrastructure. The programme is being implemented with a focus on bankability, transparency, and credibility, which are key conditions for fostering long-term investor confidence.
The statement highlighted that both departments are united in their commitment to delivering a credible, transparent, and globally benchmarked procurement process. By aligning the timelines of the ITP and Credit Guarantee Vehicle (CGV), the government is ensuring that this pioneering programme is technically sound, commercially viable, and institutionally aligned. The ITP Programme is seen as a cornerstone of South Africa’s energy reform agenda and a catalyst for investment, localization, and economic renewal.
The departments indicated that timelines would be refined to strengthen alignment and market confidence. As part of ongoing coordination between government and development partners, it has become necessary to better align the timelines of the ITP Phase I procurement with the establishment of the CGV, a key credit enhancement instrument being developed by National Treasury with support from the World Bank Group. The sequencing of these processes is essential to provide bidders and lenders with full clarity on the guarantee framework that will underpin the financial close of the ITP transactions.
Pre-qualified bidders (PQBs) are expected to be announced by December 15, 2025, followed by the release of a draft Request for Proposal (RFP). This approach will allow PQBs to provide feedback on commercial and bankability components before the final RFP is released, which is expected by the third quarter of the 2026 calendar year. The consultations with the market are intended to ensure that the final RFP reflects market realities, lender expectations, and international best practices, thereby enhancing investor confidence and supporting timely financial close.
Despite the refinement adding time to the initial RFP schedule, it ensures that the ITP Programme proceeds on a sound, coordinated, and fully bankable footing. The departments have also made significant progress on the CGV’s technical, legal, and financial design. The CGV will be established as a private, non-life insurer, independent from government and regulated by the Prudential Authority. It is expected to provide credit guarantees for qualifying infrastructure projects, commencing with Phase I of the ITP Programme. The CGV’s operationalisation is anticipated in the second half of 2026, a critical step for implementing Phase I of the ITP Programme.
This facility is regarded as a groundbreaking innovation in South Africa’s infrastructure finance architecture, designed to mobilize private capital and reduce reliance on sovereign guarantees.