NDB and ESKOM sign loan agreement for renewable energy integration project

New Development Bank (NDB) and ESKOM Holdings SOC Limited (Eskom) signed the Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project. Under the Agreement, the NDB will provide a loan with a sovereign guarantee to Eskom with an amount of USD 180 million.

The New Development Bank’s Project Finance Facility (PFF) will be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects. The PFF will also support renewable energy development and reduce the country’s reliance on fossil fuels.

The project will integrate a total of 670 MW of renewable energy into the Eskom’s grid. Modern grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to the identified areas. The project will also help increase electricity supply to the targeted areas for sustainable development.

Mr. Xian Zhu, COO of the NDB said, “we are happy to support this important project that will contribute to the development of grid connection infrastructure in South Africa and support the shift to a more sustainable energy path in the country. Moreover, we believe that supporting South Africa’s energy sector is fully in line with the Bank’s mandate and our role as a reliable development partner.”

The project will enhance the country’s capacity for renewable energy while achieving sustainable growth. It also aligns with the Bank’s focus to support projects that aim at developing renewable energy sources.

Original source: NDB
Published on 01 April 2019