`Eskom gets R15bn loan

2010-11-04 14:33

Eskom has been granted a R15 billion loan by the Development Bank of Southern Africa.

“This deal signifies a major step aimed at ensuring that South Africa’s long-term electricity supply meets demand to ensure the economy can thrive,” the bank’s chief executive Paul Baloyi announced today.

The bank said Eskom’s capacity expansion projects would add 12?300 megawatts of additional generating and transmission capacity to the national grid by 2017.

“The bank has approved a R15-billion loan facility that will support Eskom’s capacity expansion programme.

The loan, which is a structured facility, will be drawn over five years and does not utilise guarantees from the South African government.”

The projects benefiting from the loan included the Medupi and Kusile coal-fired power stations.

Baloyi said it was “only logical” for the bank to contribute to the funding of projects that would ensure a secure supply of energy for South Africa.

Eskom chief executive Brian Dames welcomed the announcement.

“The loan is a vote of confidence by the bank in Eskom.

It will help us to provide South Africa with the power stations and transmission infrastructure it needs while ensuring that Eskom remains financially sustainable,” said Dames.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.