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German KfW lends ZAR1.35 billion to South African Eskom [free access]

July 2, 2018

South African state-owned power utility Eskom Holdings SOC Limited (Eskom) has signed a loan agreement worth ZAR1.35 billion with the German KfW Development Bank for supporting investments needed to expand the transmission network in the Northern Cape Province.

 

The grid expansion will facilitate the integration of renewable energy independent power producer (IPP) projects for which power purchase agreements (PPAs) were recently signed.

 

The loan amount will also allow implementation of the second phase of capacity and reliability improvements in the areas of Harrismith in the Free State Province and the Greater East London region in the Eastern Cape Province.

 

The loan will facilitate implementation of Eskom’s ZAR72 billion funding requirement for FY2018/19.

 

The loan agreement forms the first new funding that Eskom plans to sign up for with Development Finance Institutions (DFIs) during the current financial year.

 

(ZAR1=USD0.73)