Eskom signs R19.6 billion loan with Chinese bank

Eskom has signed a R19.6 billion ($1.5 billion) loan agreement with China Development Bank to finance the Medupi coal power plant.

The Chinese loan will be paid back over 15 years and will add to Eskom's current R300 billion debt.

Energy expert Chris Yelland says the power utility has had to revise the schedule for the Medupi power station, which will only be on stream in 2021.

It will be about seven years late but it is coming along step by step.

Chris Yelland, energy expert and MD at EE Publishers

Yelland says governance problems and resulting cash-flow issues need to be addressed at Eskom in order to avoid the need to borrow money.

The China Development Bank is the world's biggest lender.

Eskom is expected to release its financial results next week.

Take a listen:


This article first appeared on CapeTalk : Eskom signs R19.6 billion loan with Chinese bank


Recommended

by NEWSROOM AI
Read More
Eskom offered R800 million contingency fee from China’s Dongfang company - BD

Eskom offered R800 million contingency fee from China’s Dongfang company - BD

On Friday the High Court in Johannesburg interdicted the contract.

"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

Deputy Editor of the Financial Mail, Sikonathi Mantshantsha says the Gupta-owned mine only had to pay 10% of the initial fine.

Eskom must not pass the buck for financial losses, says expert

Eskom must not pass the buck for financial losses, says expert

The power utility has been criticised for its apparent lack of cost controls at the public hearings into its proposed tariff hike.

Roman Crookes quits his position as Medupi project director

Roman Crookes quits his position as Medupi project director

Roman Crookes has been replaced as project director of the new Medupi power station with immediate effect and without a handover.

Medupi Unit 6 goes fully online on Sunday

Medupi Unit 6 goes fully online on Sunday

Energy expert Chris Yelland on the suspension of coal supplies to Eskom by Optimum Coal and Medupi 6’s D-day on Sunday.

Popular articles
Thandeka Gqubule prepared to fight EFF to the end

Thandeka Gqubule prepared to fight EFF to the end

SABC Journalist and part of the SABC 8 Thandeka Gqubule says she has not had any communication from the EFF.

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

Laywer Tebogo Malatji gives an update on Wednesday's meeting between Minster Pravin Gordhan and PP Busisiwe Mkhwebane.

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

South Africa has a brand-new bank! The Money Show’s Bruce Whitfield interviews Adrian Gore, Discovery Group CEO.

De Vos: Mkhwebane went against Public Protector's Act in subpoenaing Gordhan

De Vos: Mkhwebane went against Public Protector's Act in subpoenaing Gordhan

Prof Pierre de Vos says that Advocate Busisiwe Mkwhebane's pursuit of Pravin Gordhan is legally flawed.

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Mashaba posted a picture of a man pushing a trolly full of cow heads saying that he had him arrested for an "illegal act".

[WATCH] Pupils dance to music made from a street pole in a true Mzansi way

[WATCH] Pupils dance to music made from a street pole in a true Mzansi way

Tech guru Jonathan Khabazela Fairbairn explores some most popular videos being shared on social media.

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

The Money Show’s Bruce Whitfield interviews Telkom Group CEO Sipho Maseko.

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

The Money Show’s Bruce Whitfield interviews branding and advertising expert Andy Rice about Merc's stirring new ad.

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

The Money Show’s Bruce Whitfield interviews Rain CEO Willem Roos for his weekly “ShapeShifter” feature.