S Africa's Eskom to get EUR 100m loan from France for 100 MW solar project

Oct 16, 2013 - South African power utility Eskom will borrow EUR 100 million (USD 135m) from French government agency AFD to finance its 100 MW concentrating solar power (CSP) plant near Upington, Northern Cape, the company said in a statement yesterday.

The deal will be signed at a summit between French President Francois Hollande and South African counterpart Jacob Zuma, taking place in Pretoria.

The CSP project will produce 525 GWh annually, sufficient to supply 200,000 households, Eskom explained. This is one of the projects that will allow the company to reduce its carbon footprint, while investing in a sustainable energy future, in line with South Africa's renewable energy policy and targets.

Apart from the financial assistance of AFD, the renewable energy project is financed also by the African Development Bank, the Clean Technology Fund, the European Investment Bank, German financial institution KfW and the World Bank.

Eskom reminded this is not the first time that it receives financial backing from AFD. In 2011, the South African company and the French agency signed a EUR-100-million loan facility for the Sere wind farm near Vredendal in the Western Cape.

AFD has been operating in South Africa since 1994 through its regional office based in Johannesburg.

(EUR 1.0 = USD 1.353)

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