The Department of Electricity and Energy (DEE) and National Treasury wish to update stakeholders on the next steps in the implementation of South Africa’s Independent Transmission Projects (ITP) Programme, a flagship initiative to crowd in private investment for the expansion of the national grid.

The ITP Programme remains on track to unlock large-scale investment in transmission infrastructure and is being implemented in a manner that upholds bankability, transparency, and credibility, which are key conditions for long-term investor confidence.

Refining Timelines 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 Credit Guarantee Vehicle (CGV), a key credit enhancement instrument being developed by National Treasury with the support of the World Bank Group. The sequencing of these two processes is critical to ensure that bidders and lenders have full clarity on the guarantee framework that will underpin the financial close of the ITP transactions.

The announcement of Pre-Qualified Bidders (PQBs) will be made by no later than 15 December 2025, , followed by the simultaneous release of a draft Request for Proposal (RFP). This will allow PQBs to provide feedback on commercial and bankability components prior to the release of the final RFP. The final RFP will be released by no later than quarter 3 of the 2026 calendar year.

This structured market consultation, unprecedented in South Africa’s transmission procurement, ensures that the final RFP will:
• Be a fit-for-purpose RFP that reflects market realities, lender expectations, and international best practice. 
• Enable early identification of technical and commercial barriers, thereby minimising post-release clarifications.
• Instill enhanced investor confidence, signalling government’s commitment to transparency, predictability, and collaboration.
• Provide a strong foundation for competitive, high-quality bids that support timely financial close.
• Reduce downstream clarifications once the RFP is formally released.
• Reinforce South Africa’s reputation for transparent, credible, and world-class energy procurement.

Although this refinement adds time to the initial RFP schedule, it ensures that the ITP Programme proceeds on a sound, coordinated, and fully bankable footing, protecting the integrity of both the RFP process and the CGV’s credit framework.

Progress on the Credit Guarantee Vehicle (CGV)
National Treasury, supported by DEE and working with the World Bank Group and a consortium of development partners, has made significant progress on the CGV’s technical, legal, and financial design. The CGV will be established as a private, nonlife insurer, independent from government and regulated by the Prudential Authority . The CGV is expected to provide credit guarantees for qualifying infrastructure projects, commencing with Phase I of the ITP Programme.

The current focus is on finalising capital commitments and progressing licensing requirements, with CGV operationalisation anticipated in second half of 2026, which is critical to implement Phase I of the ITP Programme. This facility is a groundbreaking innovation in South Africa’s infrastructure finance architecture, designed to mobilise private capital and reduce reliance on sovereign guarantees.

Reaffirming Government’s Commitment
The Department of Electricity and Energy and National Treasury remain united in their commitment to deliver a credible, transparent, and globally benchmarked procurement process. By aligning the ITP and CGV timelines, government is acting decisively to ensure that this first-of-its-kind programme is technically sound, commercially bankable, and institutionally aligned.

The ITP Programme continues to serve as a cornerstone of South Africa’s energy reform agenda and as a catalyst for investment, localisation, and economic renewal.

Issued jointly by the Department of Electricity and Energy and National Treasury Date: 31 October 2025