R6bn French loan for grid upgrades
renewable energy projects, among others.
Eskom has connected to the national 62 IPP projects, with a cumulative capacity of 4 200MW. The projects are part of the Department of Energy’s Renewable Energy Independent Power Producer (Reipp) and Peaker programmes. Eskom has previously said that a further 620MW was expected to be added to the grid in the 2017/2018 financial year as more projects from the Reipp
boiler pressure test at Unit 6 in May 2012. Among others, the boiler test was meant to determine the integrity of welds. Kessel said that the May 2012 deadline was not achievable.
Eskom rejected Hitachi’s proposal to weld at own risk after the issuance of the stop work order. Kessel had told Eskom that to weld at risk was against the law and was “unacceptable”. But Hitachi programme are integrated into the national grid.
“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.
Eskom said AFD’s funding would focus on transmission lines and substations that support grid strengthening in areas where the development
defied the order and proceeded to weld between April 27 and May 4, 2012.
“The welding procedures could not be adequately qualified while the contractor continued to work ‘on their risks’ in their fabrication workshop.” Eskom said it could not agree to Hitachi’s proposal to conduct the welding, although the company assumed the risk for any Weld Procedure Qualification 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.
AFD’s chief executive, Rémy Rioux, said the institution’s focus was on renewable energy production, renewable
Record failures.
“Eskom could not take the risk of equipment being installed on site, without adequate evidence of compliance to the health and safety standards, therefore Eskom issued a stop work order because the risk was now transferred on to site by erecting non-compliant equipment,” Eskom said.
Explaining the delays in energy related grid reinforcement and expansion.
AFD has previously made funds available for Eskom’s Sere wind farm (€100 million; R1.36bn). In November 2015, Eskom and AFD signed a €150m credit facility agreement for the financing of Eskom’s distribution projects in the KwaZulu-Natal, Eastern Cape and Limpopo. That facility was meant for investments in grid strengthening, refurbishment, reliability
the commissioning of Medupi, Eskom said last week that the initial assumption that its contractors had the necessary knowledge and skills to execute mega projects in South Africa environment to supplement Eskom “did not prove valid”.
Eskom said using the Majuba power station design as a proxy for Medupi was “not optimal”. But it said the move was necessary to fast-track improvements, minor reticulations, split metering and upstream grid reinforcement to cater for renewable energy.
Meanwhile, AFD signed a $100m (R1.27bn) loan facility with the Development Bank of Southern Africa (DBSA) to support the Bank’s infrastructure financing activity across Africa. AFD said the loan would focus energy, water, transport and information and communications technology.
“This new credit line and expanded partnership with DBSA in favour of sustainable infrastructure financing is at the crux of our strategy in Africa,” said Rioux.
the project. “A truly turnkey approach was not an option at that time,” Eskom said.
In response to Business Report’s specific questions about the Medupi contract, Hitachi said: “In all mega projects there are cycles of testing and approval to achieve international standards. South African industry required particular attention to arrive at the standards for Medupi.”