Eskom gets £1.1m turbine financing
29 December 2009
South African power company Eskom has negotiated some €1.185 million (£1.067 million) with five French banks to fund the Medupi and Kusile turbines.
The money will be awarded in the form of a fixed-interest rate loan, covered by the French Export Credit Agency and repayable over 12 years after the commissioning of parts of the power stations.
According to publication Business Day, the 4,800mw Kusile turbine's first unit will not be commissioned until 2012.
The news source also noted Eskom has applied for a loan with the World Bank for projects at the Medupi power station as well as renewable energy and low-carbon energy efficiency programmes.
A decision is expected to be made by the lending body by next March.
These utilities have recently received support from the African Development Bank in the form of €1.86 billion.
Last May, a R6.1 billion (£515 million) export credit agency loan was negotiated between the company and seven European Banks as part of the former's bid to finance its capital expansion programme, Business Day reported.