French funding aids Eskom’s investments in power grid

JOHANNESBURG, (CAJ News) – ESKOM and the French Agency for Development have signed a R6 billion (€400 million) multi-tranche framework agreement to support Eskom investments in the extension and reinforcement of its power transmission grid.
Eskom Chief Financial Officer, Anoj Singh, says the multi-tranche loan facility will contribute towards Eskom plans to strengthen and refurbish the transmission infrastructure while diversifying our funding structures.
AFD’s funding will focus on transmission lines and substations that support grid strengthening in areas where the development of future renewable energy sources are envisaged as well as to support the
facilitation of cross border transmission projects.
The funding will contribute to AFD’s global objective of dedicating 50 percent of its funding to development projects that have a climate change co-benefit.
AFD’s Chief Executive Officer, Rémy Rioux, says the funding to Eskom reiterates the willingness of AFD to be a key financial partner of the South-African utility.
Since the beginning of our engagement with Eskom, almost ten years ago, they have made the choice to focus their support on targeted areas where they believe a development finance institution like AFD can provide the most value-added renewable energy production.
The multi-tranche facility has been approved while the partnership between Eskom and Électricité de France – that was entered into in November 2015 – is completed.
– CAJ News