Pretoria - The New Development Bank’s US $180 million loan to Eskom will be used for the development of transmission lines, the power parastatal said on Tuesday.
“We received the loan at a good rate. The money will be used for the development of transmission lines,” Eskom spokesperson Khulu Phasiwe said.
The NDB announced on Friday that it has approved its first set of loans worth US $811 million, which will go towards supporting renewable energy initiatives.
Phasiwe said the power utility will over the next 10 years spend R213 billion on the installation of transmission lines across the country. He said the funds, which will be disbursed in tranches, will be used in a twofold manner.
“Firstly, we will install transmission lines to make sure that the three million people in the country who do not have access to electricity are connected to the grid. Part of [the funds] will also be used for renewables to the grid,” said Phasiwe.
He said the funds will be used to connect companies to the grid as part of the Renewable Energy Independent Power Producer Programme.
The NDB, which was established by BRICS [Brazil, Russia, India, China and South Africa] to finance infrastructure and sustainable development projects, said the appraised projects were presented at the fifth Board of Directors’ meeting in Washington on the sidelines of the International Monetary Fund and World Bank Group Spring Meetings. - SAnews.gov.za
