Eskom has signed a US$1.5-billion loan agreement with the China Development Bank (CDB) to help finance the Medupi Power Station Project in Limpopo.
The agreement was signed yesterday (Thursday) at the utility’s head office in Megawatt Park, Johannesburg.
“The loan fulfils our intent to diversify Eskom’s funding sources,” said Eskom’s chief financial officer, Anoj Singh.
According to Eskom’s new interim CEO, Johnny Dladla, the loan will also aid the power parastatal in ensuring security of energy supply in the country.
Singh stated that to date Eskom had secured 77% of the current fiscal year’s funding requirement.
In October 2016, Eskom signed a US$500-million credit facility agreement with the CDB, securing 66% of its funding requirement.
“The conclusion of this second loan agreement continues to demonstrate [the] financial market’s confidence in Eskom and South Africa,” added Dladla.
