NDB and Eskom Sign Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project
1 April 2019
New Development Bank (NDB) and ESKOM Holdings SOC Limited (Eskom) signed the Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project. Under the Agreement, the NDB will provide a loan with sovereign guarantee to Eskom with an amount of USD 180 million.
The Loan Agreement was signed by Mr. Xian Zhu, NDB Vice President and Chief Operations Officer (COO) and Mr. Calib Cassim, Chief Financial Officer (CFO) of Eskom during the 4th Annual Meeting of the New Development Bank in Cape Town, South Africa.
The New Development Bank’s Project Finance Facility (PFF) will be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects. The PFF will also support renewable energy development and reduce the country’s reliance on fossil fuels.
The project will integrate a total of 670 MW of renewable energy into the Eskom’s grid. Modern grid connection infrastructure will be used for renewable energy projects and augmentation of the Eskom transmission network to the identified areas. The project will also help increase electricity supply to the targeted areas for sustainable development.