Eskom’s Brics bank loan on ice until 2018
The R2.4bn facility was for green-energy projects
The R2.4bn loan made by the New Development Bank (NDB), also known as the Brics bank, to Eskom was “in abeyance”, bank president KV Kamath said in an interview on Wednesday. Kamath was speaking on the eve of the opening of an NDB office in SA, an event that will be held with much fanfare on Thursday and which will be presided on by President Jacob Zuma. The fact that the only loan made to a South African institution so far is on ice is something of a sensitive subject for the organisation, particularly since there has been substantial demand — particularly from India and China — for the bank’s financing since its inception two years ago. The loan was made to Eskom in April 2016 with a grand flourish, but this was based on the assumption that Eskom would use the funding for transmission lines to connect 500MW of renewable energy from independent power producers to the national grid. Eskom subsequently refused to sign up new offtake agreements with renewable energy projects in terms o...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.