Eskom and AfDB act on $365mn loan to enable first large-scale implementation of renewable wind and solar generation in Eskom’s history
The loans consist of $265mn from the AfDB’s own resources and $100mn from the resources of the Clean Technology Fund, a climate investment fund that promotes the transfer of low carbon technologies. The loans are guaranteed by the South African Government, consistent with the AfDB’s procedures. South Africa’s Minister of Public Enterprises, Malusi Gigaba, and Minister of Finance, Pravin Gordhan, signed the guarantee agreements - and will further Eskom’s commitment to reduce its carbon footprint. The company hopes to begin construction of its planned Sere 100 megawatt wind project at Vredendal, in South Africa’s Western Cape, early in 2012.
The AfDB financing is part of a broader funding plan for Eskom’s renewable projects, which includes sourcing from other development finance agencies.
Exciting times
Eskom CEO Brian Dames said, “These are exciting times for Eskom. We are committed to a cleaner energy future and we now have the capability to implement our large-scale wind and solar generation projects. We appreciate the roles the African Development Bank and the South African government have played in making this possible.”
AfDB President Donald Kaberuka, who signed the current loan agreements on behalf of his institution, said, "The AfDB is committed to supporting South Africa's long-term plans for moving to a lower carbon growth path. Leveraging and accelerating the disbursement of concessional climate Financing is essential to achieve economic viability of some of the clean technology solutions. This is a priority action area for the AfDB."
