Eskom announced on Monday that it was partnering with two French agencies to secure finance for projects in the KwaZulu-Natal‚ Eastern Cape and Limpopo provinces.

Eskom on Monday signed a R2.3-billion credit facility with French public financial institution Agence Française de Développement (AFD) which “will finance investments for grid strengthening‚ refurbishment‚ reliability improvements‚ minor reticulations‚ split metering and upstream grid reinforcement”‚ the utility said.

The utility also “concluded a tripartite financial partnership agreement amounting to 450 000 (R6.8 million) with French electricity company Électricité de France (EDF) and AFD to “finance a knowledge exchange and expertise from EDF on various areas specific to power utilities”.

“The primary objective of the partnership is knowledge‚ experience and expertise sharing between the two utilities‚” Eskom said in its statement.

Eskom’s Chief Financial Officer Anoj Singh said: “We are very pleased that the AFD is making this kind of investment in Eskom. The loan also enables us to improve Eskom’s diversification of its funding sources given its terms‚ long tenor and low interest rate‚ when comparing it to other available sources.”

Eskom Chief Executive Brian Molefe said: “Both agreements will contribute towards areas of development and the strengthening of our distribution networks in some of the most remote and impoverished parts of our country.”

Eskom has partnered with both institutions in ealier projects. According to its statement: “AFD has previously supported Eskom through loans for the construction of the 100 MW Sere Wind Farm for a value of 100 million‚ and the concentrating solar power (CSP) plant for a value of 100 million.”