AfDB
Approves Loan For Eskom South Africa
The
African Development Bank (AfDB) has approved €1.86 billion loan
for South Africa’s energy utility company, Eskom Holdings
Limited.
The loan is to finance the Medupi Power Project that will
significantly boost the energy capacity of South Africa and the
southern African region.
AfDB President, Donald Kaberuka said the facility is offered
because, “South Africa’s energy problem has been a major
impediment to Africa’s leading economy. The Bank is pleased to
be associated with this project. We look forward to working with
South Africa towards achieving energy security. This operation
should be seen in the context of the Bank ongoing efforts to
help Africa bridge the infrastructure gap.”
Power projects
The Medupi plant, located in Lephalale, Limpopo Province, is
expected to be commissioned by February 2012.
Besides Medupi, Eskom is working on a number of renewable energy
programmes including a pilot wind farm in the Western Cape, a
100 MW heliostat pre-feasibility tower-type solar power plant,
and a 100 MW wind farm feasibility study.
Eskom is also pursuing a demand-side energy conservation program
aimed at saving 4,225 MW of electricity.
Proviso
The total cost of the project is estimated at €11.19 billion
and will be financed with 53% equity and 47% by loans, with the
World Bank and the export credit agencies as co-lenders with
AfDB.
The Bank Group’s operations in South Africa commenced in 1997
and as at the end of August 2009, the Bank had approved sixteen
operations.
PAF/Yinka
