President of the New Development Bank (NDB) K.V Kamath has revealed that the bank is considering lending a sum of $780 million to Eskom as the power utility is battling to guarantee stable power supply.
According to Kamath the development institution is rolling out a $180 million loan to Eskom to build transmission lines and is considering two further projects in 2019.
Kamath explained to Bloomberg that the first is a $480 million loan that will pay for retrofitting flue-gas desulphurisation equipment to make the Medupi power plant compliant with new environmental standards, while the second is a further $300 million facility to improve the country’s battery-storage capacity.
He noted: “Power is now a critical element in South Africa's infrastructure and at this point in time it is imperative that we work with the government in alleviating this problem.”
Meanwhile, Eskom is currently implementing Stage 1 rotational loadshedding. Read more: POWER ALERT: Human Rights day loadshedding
Stage 2 will be implemented from 09h00 and will continue until 23h00 today [Friday, 22 March]. This is due to a shortage of capacity.
The funding planned for Eskom will make up most of the $900 million that the NDB will extend in South Africa in 2019.
By the end of this year, the lender will have roughly $2.4 billion of loans in the country, Kamath said.