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Johannesburg - Electricity utility Eskom has
welcomed the recent declaration of support from Business Unity South Africa
(Busa) for Eskom's application for a loan from the World Bank.
Eskom said it relies on funding from a combination of existing
shareholder equity, borrowings from domestic and international markets and
tariffs.
The loan of $3.75bn, is already factored into the funding plan
as submitted to Nersa in the MYPD2 application and is critical for South
Africa and the region," said Eskom's finance director, Paul
O'Flaherty.
"It is recognised that as a developing country, South Africa needs to
capitalise responsibly on its natural resources whilst honouring its greater
commitment to reduce carbon emissions over time," added
O'Flaherty.
This World Bank transaction will fund specific components of Eskom's
capital expansion programme such as the Medupi Power Station - the first
coal-generating plant in Africa to use supercritical power generation
technology. The loan will also simultaneously catalyse new and lower carbon
technologies such as large scale solar thermal and wind power. The funding
is well aligned to jump-start progress on South Africa's commitment to a
lower carbon footprint.
"The proposed funding will combine favourable financing rates with a
structured repayment profile thereby making it an economically
attractive option to contribute to South Africa's future economic
growth," concluded O'Flaherty.
- I-Net Bridge