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Add to Preferred SourcesGerman state-owned bank KfW has agreed to loan Eskom $100m, equivalent to about R1.38bn at Friday’s exchange rate.
The German embassy issued a media statement saying the loan added to R29bn that Germany had committed since 1995 “to address SA’s triple challenge of overcoming poverty, unemployment and inequality by empowering people, improving institutional capabilities, building skills and stimulating inclusive economic growth”.
“A reliable energy supply is the backbone of growth, job creation and innovation,” deputy German ambassador Klaus Streicher said in the media release.
“Clean energy is a prerequisite for health and quality of life. When we work together on the basis of trust, leveraging each other’s strengths, we make the greatest strides towards a greener and more inclusive society.”
The loan from KfW — originally Kreditanstalt für Wiederaufbau, which translates to “reconstruction credit institute” — is to co-finance three transmission projects that involve the upgrading of existing infrastructure and the building of new lines.
“Eskom intends to implement the selected projects to significantly improve security of supply, and to reduce transmission losses,” the German embassy said in the statement.
“Furthermore, the new infrastructure will allow for the integration of power from solar and wind plants into the national grid. The network integration of renewable energy sources and the improved grid efficiency will directly contribute towards reducing carbon dioxide emissions. This will support SA in reaching its ambitious climate goals.”
Original source: Business Day
Published on 29 June 2018