China Development Bank provides $500 million loan to Eskom for Medupi, Kusile, and Ingula Power Plants (Linked to Project ID#58385)
Commitment amount
$ 590402254.1792336
Adjusted commitment amount
$ 590402254.18
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
South Africa
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Central government-guaranteed debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
On October 3, 2016, China Development Bank and the Electricity Supply Commission (Eskom) — South Africa's state-owned electric power company — signed a $500 million loan agreement. The South African government-guaranteed loan was payable three years after the date the loan agreement was signed. Its interest rate is unknown. The proceeds of the loan were intended to support Eskom’s capital expansion program, including the Medupi, Kusile, and Ingula power plants and the Matla mine 1 shaft relocation. The loan fully disbursed in December 2016. Medupi is a coal-fired power plant with a capacity of 4764MW, Kusile is a coal-fired power plant with a capacity of 4800MW, and Ingula is a pumped-storage hydroelectric power plant with a capacity of 1332MW. As of 2018, the Ingula Plant was fully operational, but the Medupi and Kusile Plants were still under construction.
Additional details
1. In 2017, CDB provided an additional $1.5 billion loan to ESKOM for the Medupi Power Plant, which is captured via Project ID#58385.
Number of official sources
11
Number of total sources
18
Details
Cofinanced
No
Direct receiving agencies [Type]
Electricity Supply Organization (Eskom) [State-owned Company]
Guarantee provider [Type]
Government of South Africa [Government Agency]
Loan Details
Maturity
3 years