AfDB signs loan agreement with Eskom to improve power transmission in Southern Africa

Nov 30, 2018
Posted by Patrick Haddad

The African Development Bank group has a loan agreement with South African power utility Eskom to improve power transmission across Southern Africa.

The loan, worth around $25 million, will go towards strengthening South Africa’s transmission infrastructure and contributes to the realisation of the AfDB’s New Deal on Energy in Southern Africa. The bank has identified the region as a priority area and seeks to ensure capacity adding new connections in South Africa and the rest of the rehion.

“Not only will this improve the reliability and security of electricity supply but it will also allow for the integration of large-scale renewable energy into the transmission network, enhance network capacity for future load growth and ensure reduction in transmission losses,” said AfDB Souther Africa beueau director-general Dr Kapil Kapoor.

The new loan agreement will see the construction of 552 km compising 436 km of 400 kV and 116 km of 132 kV transmission lines and associated substations across Mpumalanga and KwaZulu-Natal provinces, as well as the upgrade of substation equipment, including earthing systems at various existing substations in Mpumalanga.

“We are encouraged by the level of support that we continue to receive from development finance institutions, such as the AfDB, which continues to be a significant partner and a key contributor to the progress achieved by Eskom in the execution of the current capital expansion programme,” Eskom acting CFO Calib Cassim said.

“We are particularly thankful for the continued support at a time when Eskom has made major advancements towards fully securing the R72-billion funding requirement for this year. These kinds of facilities are a demonstration of the bank’s mandate to contribute to the economic development and social progress of African countries,” he added.


Source: Engineering News

Photo (for illustrative purposes): Gordonia Eskom substation, South Africa/ Graeme Williams/ Wikimedia/


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