German bank KfW loans Eskom R1 billion

The money will be used to expand the transmission network in the Northern Cape.

KfW, the German development bank, has signed a (R1 billion) loan facility with Eskom. Eskom said in a statement that the money will support the expansion of the transmission network in the Northern Cape province, following the government’s signing earlier this year of several long-delayed power-purchase agreements worth over $4 billion. The funds will also be used for varoius improvements in other provinces.

Phakamani Hadebe, Eskom CEO, said in the statement:

“The signing of this loan facility is a positive contribution towards the successful execution of Eskom’s R72 billion funding requirement.”

The loan forms part of the first new funding that Eskom intends signing with development finance institutions this financial year, he added.