Eskom secures R33.7bn loan from China for Kusile power station

Eskom, on Tuesday, secured a $2.5-billion (R33.7-billion) loan from China's state-owned bank to complete the Kusile power station project in Mpumalanga.

The South African government has provided the guarantee.

Eskom’s group treasurer Andre Pillay said the loan was effective from today.

“It is a normal commercial loan for the financing of our power station,” he said.

Eskom’s Group Chief Executive Phakamani Hadebe said: “If you had listened on Monday when we were talking about the funding we highlighted that there will be additional funding that would becoming.”

Once completed, Kusile will be the fourth-largest coal-fired power station in the world. The Kusile project will include a power station precinct, power station buildings, administrative buildings, roads and a high-voltage yard.

The Eskom loan forms part of the 14 agreements which were signed between South Africa and China at the Union Buildings in Pretoria on Tuesday. The agreements include the visa deal, financial agreement and a special agreement for the development of SMME’s on the continent.

The signing of the agreements follows the official talks between President Cyril Ramaphosa and the People’s Republic of China Xi Jinping at the Union Buildings earlier.

Ramaphosa said the agreements will deepen relations between the two countries.

“President Xi and I have agreed to supporting each other to improve the lives of our people. We have agreed that we must work together.”

Ramaphosa said Jinping sees Africa as a special continent.