Photo by: Creamer Media
State-owned 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 (IPP) projects.
This funding will also allow for the continuation of the second phase of capacity and reliability improvements in the areas of 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 signing of this loan facility is a positive contribution towards the successful execution of Eskom’s R72-billion funding requirement for the 2018/19 financial year, and forms part of the first new funding that Eskom intends on signing with developing finance institutions in this financial year.
“The successful conclusion of this agreement between Eskom and KfW 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 on Friday.
He explains that the facility demonstrates the improved market sentiment and confidence in the ability of the Eskom’s leadership to direct the company on the correct path to recovery and sustainability.
“Integrating more renewable sources of energy into the grid will go a long way in helping to reduce South Africa’s carbon dioxide emissions, driving Eskom towards its targeted goals,” Phakamani added.