Eskom signs R1,4-billion loan from German bank KfW

schumi

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.Eskom and KfW, the German development bank, have signed a $100-million (nearly R1,4-billion) loan facility to connect renewable-power projects run by independent producers to the grid.

The loan will support expanding the transmission network in the Northern Cape province after the government signed long-delayed power-purchase agreements in April for projects worth $4,1-billion, as well as improvements in other provinces, Eskom said in an emailed statement.
More at : https://www.timeslive.co.za/amp/sun...m-signs-r14-billion-loan-from-german-bank-kfw
 

Gordon_R

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So, Eskom is doing something right. What's the catch? There must be one, or am I being too cynical?
 

f2wohf

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f2wohf

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Do you recall the huge price increases we had recently. The reasons were to fund such projects. You really can't trust any of the bs now days.
The grid strengthening to connect the REIPPs? Only the EDF loan in 2015 was for this. Link?

Eskom price increases are passive meaning that they pay for capital already engaged, not for future projects or costs.

These loans pay for future projects, and then Eskom repays the loans through its revenue collection (including price increases). This is a development loan so at extremely low rates and probably the best Eskom can hope.
 
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lsheed_cn

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The grid strengthening to connect the REIPPs? Only the EDF loan in 2015 was for this. Link?

Eskom price increases are passive meaning that they pay for capital already engaged, not for future projects or costs.

These loans pay for future projects, and then Eskom repays the loans through its revenue collection (including price increases). This is a development loan so at extremely low rates and probably the best Eskom can hope.
KfW has been steadily loaning ESKOM money - eg they loaned EUR $250 million for Medupi build in 2008.

This loan - the transmission infrastructure improvement loan for renewables started in 2015.

Initial loan from KfW was R3.9 billion in March 2015 for grid use. (USD $339 million)
https://af.reuters.com/article/africaTech/idAFKBN0MZ18D20150408

This add's another R1.35 billion (US$100 million) towards that.

Its for the continuation of the second phase of capacity and reliability improvements in the areas of Harrismith in Free State province and the Greater East London region in the Eastern Cape.

Hopefully we'll see some HV transmission out of this - we need an extended HV network badly.

Some talk about that here - http://www.ee.co.za/article/eskoms-transmission-network-expanded-significantly.html
 
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Sweevo

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So, Eskom is doing something right. What's the catch? There must be one, or am I being too cynical?
Hehehe... a loan... at x% interest... you know where that comes from...
So this loan is for renewables? We'll see...
 
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furpile

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So Eskom is out of money and offer 0% increases. Unions go on strike and demand that the cancel the renewables since there is too much power generated and it is threatening their jobs. Now Eskom signs another billion rand deal to connect renewables to the grid. The unions are not going to like this.
 

ArtyLoop

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So they have their loan...
Wonder if those fools realise they've been taken for a ride...
But ja, EKSDOM can TSEK now with their increases...
 

Compton_effect

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I used to work for Bank of Windhoek. I remember some rumors a few years ago that KfW was looking at financing a Gigawatt Solar Farm in the Namib. They were in negotiations with them and the Namibian government. I wonder what happened to that idea?
 
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