‘No Eskom assets put up as security in China loan’
President Cyril Ramaphosa gave some details of the terms of the R33 billion loan while answering questions from the National Council of Provinces on Tuesday afternoon.
CAPE TOWN - President Cyril Ramaphosa says Eskom’s $2.5 billion from China’s Development Bank is guaranteed by the government and no assets of the power utility have been put up as security.
Ramaphosa gave some details of the terms of the R33 billion loan while answering questions from the National Council of Provinces on Tuesday afternoon.
But he told the House, Eskom would not make the agreement public as it contains information that could put it at a disadvantage when negotiating in the market.
The president took exception to suggestions from the Democratic Alliance that South Africa might become a victim of “debt-trap diplomacy”.
“We are very jealous of our assets and will not hand over South Africa to any other country or any other entity – that I can assure you of.”
Ramaphosa says no Eskom assets have been used as security for the loan.
“And the China Development Bank is not entitled to any direct or indirect ownership of Eskom assets.”
The money is the third tranche of a $5 billion facility approved in 2015 by the ministers of finance and public enterprises.
Eskom must start repaying the loan in 2020, in 20 instalments over 10 years.
The loan is for the construction of the Kusile coal-fired power station and other costs.
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(Edited by Winnie theletssane)