Eskom signs $180m loan agreement

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Under the agreement, the NDB will provide a loan with sovereign guarantee to the power utility.

“The successful conclusion of this inaugural transaction with NDB will significantly contribute towards driving Eskom’s goals to reduce South Africa’s CO₂ emissions. Eskom welcomes the support from the NDB and we look forward to fostering a valuable partnership with this organisation, whose mission is to enhance infrastructure for sustainable development in its member countries,” said Calib Cassim Eskom’s chief financial officer said.

The New Development Bank’s Project Finance Facility (PFF) will be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects. The PFF will also support renewable energy development and reduce the country’s reliance on fossil fuels.

The project will integrate a total of 670MW of renewable energy into the power utility’s grid.

Modern grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to identified areas. The project will also help increase electricity supply to the targeted areas for sustainable development.

Eskom said the project will enhance the country’s capacity for renewable energy, while achieving sustainable growth. It also aligns with the NDB’s focus to support projects that aim at developing renewable energy sources.
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