Gordhan: R130bn offered to SA at COP26 summit is not for Eskom’s debt

Minister Pravin Gordhan told MPs that the R130 billion was linked to three government projects: Eskom’s just energy transition project, a green hydrogen project and getting the automotive industry to be able to produce electric cars.

Public Enterprises Minister Pravin Gordhan at an Eskom press briefing. Picture: Abigail Javier/EWN.

CAPE TOWN - Public Enterprises Minister Pravin Gordhan said the R130 billion in concessional finance offered to South Africa by developed countries during the COP26 climate summit was just that – an offer, not a deal.

Gordhan said the offer now had to be looked at and further negotiations must take place.

He has also made it clear that the money will not go towards dealing with Eskom’s R450 billion debt mountain or turning the faltering power utility around.

- ALSO READ: COP26: South Africa hails 'successful' coal 'phase-down' deal

Answering questions in the National Assembly, Gordhan told MPs that the R130 billion was linked to three government projects: Eskom’s just energy transition project, a green hydrogen project and getting the automotive industry to be able to produce electric cars.

“This finance is not for the debt of Eskom. This finance is for the transition project itself that was announced between several developed countries and President Cyril Ramaphosa at the beginning of COP26. But let me clarify that this is an offer from the developed countries, it is not a deal as this question and others propose. Negotiations will now take place at a technical level to appreciate whether these offers will be compatible with South Africa’s financial requirements and capability.”

Gordhan said once negotiations were complete, the National Assembly would be informed.