Eskom gets $365 Million renewable energy loan

Pretoria - The African Development Bank (AFDB) has granted Eskom a $365 million loan for renewable energy projects, said the parastatal.

"As the Minister of Public Enterprises Malusi Gigaba announced in his budget vote speech on 1 June, Eskom's plans have taken a step forward with the approval by the African Development Bank (AfDB) Board of a $365m loan, which consists of $265m from the Bank's own resources and $100m from the resources of the Clean Technology Fund (CTF)," Eskom said on Monday.

The loan, which was concluded under the South African Government Guarantee for Eskom's debt, is for 40-years.

The funds will be used for financing Sere, the 100 MW project which the parastatal plans in the Western Cape and a planned 100 MW concentrating solar power project in the Northern Cape.

"Eskom is committed to reducing its carbon footprint. This is an exciting time in the company's history with its first large scale introduction of two critically important renewable energy projects [wind and concentrated solar power] in its fleet. It further demonstrates South Africa's commitment to transition to a cleaner energy mix," Eskom chief executive officer Brian Dames said.

The loan forms part of broader funding plan for these projects which include other development finance development agencies.

"We are pleased with the vote of confidence in Eskom's two renewable energy projects and acknowledge the AfDB's role in financing critical and sustainable infrastructure for Africa's development," said Finance Director Paul O'Flaherty.

O'Flaherty added that the loan would not have been possible without Government's assistance. - BuaNews