Eskom and AfDB Sign Agreement to Expand Energy Pool in Southern Africa

The African Development Bank (AfDB) Group and the South African National Electricity Company Eskom have signed a loan agreement of 2,886 billion rand and 25 million dollars, which will be used to improve energy transport in Southern Africa.

This project contributes to the realization of the New Deal on Energy in Southern Africa, one of the Bank's priority development areas, ensuring the ability to add new connections to South Africa and the region.

Kapil Kapoor, Director General of the AfDB Group's Southern Africa Office, said: "The AfDB and Eskom have a long-standing partnership in which the Bank supports the transformation of this extremely important utility.

"Funding for the Eskom transport project will significantly enhance transport infrastructure in South Africa. This will not only improve the reliability and security of electricity supply, but will also allow the integration of large-scale renewable energy into the transmission network, will increase the network capacity for future growth load and guarantee the reduction of transport losses. "

Transmission lines of energy

Building on these successes, the new loan agreement provides for the construction of 552 km of 436 km (400 kV) and 116 km (132 kV) transmission lines as well as associated substations in the provinces of Mpumalanga and Kwa-Zulu Natal. in various existing Mpumalanga substations.

This should result in an integration of decentralized generation, mainly large scale renewable energy, into the transport network, ensure reliability and security of supply, reduce transport losses, improve integration. regional level and the safety of operations and maintenance personnel.

"We are encouraged by the level of support we continue to receive from developing financial institutions, such as the African Development Bank, which continues to be an important partner and key contributor to Eskom's progress." in carrying out the present expansion of capital. program, "said Calib Cassim, interim chief financial officer of Eskom.

Cassim added: "We are particularly grateful for the continued support at this time when Eskom has made major progress towards fully securing the RB 72 billion funding requirement for this year.

"This type of facility is a demonstration of the Bank's mandate to contribute to the economic development and social progress of African countries."