Eskom, New Development Bank sign R2.5bn loan agreement
The renewable energy integration and transmission augmentation project will be used to support the development of grid connection infrastructure as well as renewable energy to reduce the country's reliance on fossil fuels.
JOHANNESBURG - Eskom and the New Development Bank have signed a loan agreement amounting to around R2.5 billion for renewable energy integration and transmission augmentation project.
The loan was signed by the bank and Eskom’s CFO Calib Cassim during the fourth annual meeting in Cape Town.
This project will be used to support the development of grid connection infrastructure as well as renewable energy to reduce the country's reliance on fossil fuels.
The project is also expected to integrate a total of 670 megawatts of renewable energy into the Eskom grid.
Last month, it was reported that Eskom had already used more than R5 billion in just under a year on diesel. It was only meant to spend R600 million.
New Development Bank director-general Monale Ratsoma then said: “The underpin here is that there are specific projects that we’re looking to help Eskom, with regards to funding, which will, in the long term, be able to contribute to the sustainability of Eskom as an institution.”
Monale said the loans between Eskom and the bank have been in the pipeline for a few months.
"They will focus on number of projects, including the money for Eskom to build transmission lines, and is also aimed at Eskom to pay for flue gas equipment that will make the Medupi power plant complaint with new environmental standards.”
Additional reporting by Bonga Dlulane.
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