Weekend Argus (Saturday Edition)
Eskom gets R6 billion deal
Loan deal aims to bolster transmission network
ESKOM has signed a R6 billion loan facility with French development finance company Agence Française de Développement (AFD) for the power utility’s investments in the extension and reinforcement of its power transmission grid.
Eskom has been raising money to strengthen its transmission network as it is required to accommodate additional capacity from renewable energy technologies.
Last year it received a $1.34bn loan from the African Development Bank (AfDB).
“This multi- tranche loan facility will contribute towards Eskom plans to strengthen and refurbish the transmission infrastructure while diversifying our funding structures,” said Eskom chief financial officer Anoj Singh yesterday.
Eskom said AFD’s funding would focus on transmission lines and substations that support grid strengthening in areas where the development of future renewable energy sources are envisaged, as well as to support the facilitation of cross-border transmission projects.
“As such, the funding will contribute to AFD’s global objective of dedicating 50 percent of its funding to development projects that have a climate change co- benefit,” Eskom said.
Meanwhile, the National Union of Metalworkers of South Africa (Numsa) is calling for a national shutdown to protest against moves by Eskom to close several coalfired power stations because it has an oversupply of electricity and to make way for Independent Power Producers (IPPs).
Numsa general secretary Irvin Jim said yesterday that his union could not sit back and watch the destruction of jobs. “The National Union of Metalworkers of South Africa is gearing up for the mother of all strikes in its bid to fight the looming crisis at Eskom,” said Jim.
Last week the power utility announced that it will be shutting down several power stations in Mpumalanga because it had an oversupply of electricity.
The closure of these plants is also to make way for Independent Power Producers (IPPs) to which the government has committed itself.
“The CEO of Eskom confirmed through the media that these changes will result in at least 30 000 people losing their jobs, not just in Eskom, but in related sectors as well,” said Jim.
“As Numsa we cannot simply sit back and allow Eskom and this government to destroy the livelihoods of thousands of workers and their families. In an environment where there are high levels of poverty and escalating unemployment, we believe that every job counts.
“Numsa is challenging Eskom’s view that there is surplus electricity. The truth of the matter is that electricity has become extremely expensive because of price drivers, in particular coal.
“Also, what Eskom perceives as surplus energy is due to the closure of many companies which were unable to afford the high cost of electricity.
“In essence Eskom is directly responsible for high lev- els of deindustrialisation.
“We have 350 000 workers and we are represented in numerous sectors, including mining, transportation and energy.
“In the light of the national crisis of job losses in the energy sector, we will mobilise in all sectors, to implement a national shutdown of all services,” Jim said.
“We will bring this economy to its knees.
“We will mobilise communities to hold demonstrations and pickets because this crisis affects them too.
“It is clear to us that this programme is not only premature, but foolish as it will result in the destruction of our communities, and ultimately it will destroy any hope of us tackling inequality in South Africa,” he said.