- First US 480 million loan will pay for retrofitting flue-gas desulphurisation equipment to make the Medupi power plant compliant with new environmental standards.
- Second US 300 million facility to improve the country’s battery-storage capacity.
President of the New Development Bank (NDB) K.V Kamath has revealed that the bank is considering lending a sum of US780 million to Eskom as the power utility is battling to guarantee stable power supply.
Kamath explained that the first is a US480 million loan that will pay for retrofitting flue-gas desulphurisation equipment to make the Medupi power plant compliant with new environmental standards, while the second is a further US300 million facility to improve the country’s battery-storage capacity.
Kamath said the development institution is also rolling out a US180 million loan to Eskom to build transmission lines and is considering two further projects in 2019.
He noted: “Power is now a critical element in South Africa’s infrastructure and at this point in time it is imperative that we work with the government in alleviating this problem.”
The funding planned for Eskom will make up most of the US900 million that the NDB will extend in South Africa in 2019. By the end of this year, the lender will have roughly US2.4 billion of loans in the country, Kamath said.
Author: GBA News Desk/ESI-Africa Contributor
This article was originally published on ESI Africa and is republished with permission with minor editorial changes.
