Ricochet News

Eskom’s R2.3bn credit deal to benefit Eastern Cape

By Charl Bosch - Nov 23, 2015
Eskom’s R2.3bn credit deal to benefit Eastern Cape

Power utility Eskom on Monday announced the signing of an agreement with French funding agency, Agence Française de Developpement (AFD), for a R2.3-billion credit facility to finance projects in the Eastern Cape, KwaZulu-Natal and Limpopo.

At the same time, the state-owned parastatal also confirmed the passing of a R6.8-million deal with electricity supplier, EDF, as part of a sharing agreement regarding expertise and knowledge in the various fields of supply.

“The primary objective of the partnership is knowledge, experience and expertise sharing between Eskom and FDF,” Eskom CEO Briam Molefe told Fin24 after the signing.

“Eskom has enjoyed a fruitful relationship with (AFD) and the agreements further cement this relationship. We look forward to sharing knowledge and good practices with our peer (EDF)”.

As part of the agreement, Eskom would repay the loans at so-called “competitive rates” as it plans to strengthen systems and provide complete electricity access in the above mentioned provinces.