South Africa’s power utility, Eskom received a loan of USD 480 million from the BRICS New Development Bank for the Medupi Thermal Power Plant (TPP) on 2 April. NDB held the Fourth Annual Meeting of Governors on Monday, 1 April to 2 April in Cape Town, South Africa.
“The loan will be used for financing of retrofitting flue-gas desulfurization to make Medupi TPP compliant with South Africa’s environmental standards coming into force, thus preventing suspension of its operation”, the NDB sad in a statement.
Medupi TPP has a planned capacity of 4,800 MV – approximately 10% of the total generating capacity in South Africa. The construction of the power plant began about 12 years ago and was meant to bridge the gap as Eskom’s power plants were aging and breaking down constantly. The power utility implemented stage 4 load shedding last month.
On the same date, the New Development Bank and Eskom Holdings SOC Limited signed the Loan Agreement for Renewable Energy Integration and Transmission Augmentation Project. The multilateral funding institution will provide a loan with a sovereign guarantee amounting to USD 180 million.
“The project will integrate a total of 670 MV of renewable energy into Eskom’s grid”, said the NDB.
By: Kgothatso Nkanyane