R1.35bn loan to help Eskom integrate renewables into the grid
State-owned parastatal Eskom has entered into a R1.35-billion loan facility with German development bank KfW to support further investments in Eskom's transmission network in the Northern Cape in order to integrate renewable-energy independent power producer projects.
This funding will also allow for the continuation of the second phase of capacity and reliability improvements in Harrismith, in the Free State, and in the greater East London region, in the Eastern Cape.
These projects will largely enhance network reliability and load growth.
The loan facility is a positive contribution to the execution of Eskom’s R72-billion funding requirement for 2018/19, and forms part of the first new funding that Eskom intends to sign with development finance institutions in this financial year.
“The successful conclusion of this agreement . . . validates the bank’s continued commitment towards Eskom and is an indication of the strong partnership and cooperation between Eskom and KfW,” Eskom CE Phakamani Hadebe said last week.
He explained that the facility demonstrated the improved market sentiment and confidence in the ability of the Eskom’s leadership to direct the company on the path to recovery and sustainability.
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