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
[WATCH] Refentse Morake continues breaking cultural barriers through his music

[WATCH] Refentse Morake continues breaking cultural barriers through his music

The singer who says he's 'on the border of being Afrikaans and being African' joined Azania Mosaka for this week's #702Unplugged.

What happens to our bodies if we cut out sugar

What happens to our bodies if we cut out sugar

Naked Scientist Chris Smith explains.

Why did Jussie Smollet fake his own attack? Eusebius and listeners weigh in

Why did Jussie Smollet fake his own attack? Eusebius and listeners weigh in

Eusebius McKaiser facilitates a debate on whether or not American actor Jussie Smollet faked his own attack.

[WATCH] SANDF members hilariously mess up a supposedly easy practice run

[WATCH] SANDF members hilariously mess up a supposedly easy practice run

Khabazela shares tweets and Facebook posts that have gone viral.

[LISTEN] Wife of Vele Investments' Madzonga flatly denies VBS involvement

[LISTEN] Wife of Vele Investments' Madzonga flatly denies VBS involvement

Vele Investments CEO Robert Madzonga's estranged wife Khosi shares her side of the story on the VBS saga.

‘We’d be crazy to copy! Sometimes we get it wrong. There's no culture problem'

‘We’d be crazy to copy! Sometimes we get it wrong. There's no culture problem'

The Money Show’s Bruce Whitfield interviews Ian Moir, CEO at Woolworths.

Is EOH corrupt? Is that why Microsoft ran for the hills? Its CEO explains…

Is EOH corrupt? Is that why Microsoft ran for the hills? Its CEO explains…

The Money Show’s Bruce Whitfield interviews Stephen van Coller, CEO at EOH Holdings.

'R23 million for rent a month seems huge. I don't think we could've done better'

'R23 million for rent a month seems huge. I don't think we could've done better'

The Money Show’s Bruce Whitfield interviews Adrian Gore, founder and Group Chief Executive Officer at Discovery Limited.