South Africa\u2019s Eskom Holdings and KfW, the German development bank, have signed a $100 million (R1.37 billion) loan facility to connect renewable-power projects run by independent producers to the grid.<\/p>\n
The loan will support expanding the transmission network in the Northern Cape province after the government\u00a0signed\u00a0long-delayed power-purchase agreements in April for projects worth $4.1 billion, as well as improvements in other provinces, Eskom said in an emailed statement.<\/p>\n
The funding comes at a time when state-owned Eskom is struggling with finances and as President Cyril Ramaphosa tries to draw investment to the country.<\/p>\n
“The signing of this loan facility is a positive contribution towards the successful execution of Eskom\u2019s R72 billion funding requirement,” Eskom Chief Executive Officer Phakamani Hadebe said in the statement.<\/p>\n
The loan forms part of the first new funding that Eskom intends signing with development finance institutions this financial year, he said.<\/p>\n