The African Development Bank has approved a R2,886-billion ($217,9-million) loan to Eskom, for the upgrade and expansion of its transmission facilities.
The funding supports the Eskom Transmission Improvement Project (ETIP), which will see the construction of 555km of 400kV transmission lines in KwaZulu-Natal and Mpumalanga province and the upgrading of substation equipment and improvement of various substation earth mats in Mpumalanga.
The transmission lines will provide additional power evacuation paths for new generation capacity, ensure availability of power for future load growth, enable the reduction of network losses and ensure safety of personnel and assets during network operations to ensure compliance to the Grid Code.
The bank’s intervention will enable the provision of additional power evacuation paths to the network from the Kusile, Majuba, Drakensburg and Ingula power stations. It will also benefit the utility’s corporate restructuring and governance program.
The loan, which was approved by the bank’s board on Tuesday (25 September), includes an additional co-financing of $25-million from the Africa Growing Together Fund (AGTF).
The bank’s contribution, covered by a South African government guarantee, will finance up to77% of the project. Eskom will provide 15%.
These investments will enhance regional energy trade, end-user energy access for industrial development, and address the potential addition of 130-million on-grid connections by 2025.