afrol News, 27 November - The South African energy company, ESKOM is to receive a loan of R20.7 billion from the African Development Bank (AfDB) for its Medupi Power Station project in the Limpopo province.

Eskom, which it has also been announced it was in talks for a World Bank, has embarked on the Medupi project which is estimated at a cost R124.42 billion. According to the announcement, the AfDB funding will be used to fund the supply and installation of boilers and turbo-generators.

The power station is part of Eskom’s programme aimed at reducing the country's electricity generation capacity deficit. It is expected to provide additional generation capacity of 4.764 mega watts.

The Eskom loan is said to be the biggest project that the AfDB finances in South Africa, and also the biggest loan ever approved by the bank. At the end of August 2009, the AFDB had approved the funding of 16 projects in South Africa.

South Africa was marred by power black-outs last year that even forced down the production in the manufacture sector as well as mining.

The utility company has recently come under heavy criticism for its proposal to hike the tariff as also part of recovering its power sourcing costs.

While engaged in several platforms to increase its power generation, South Africa has also entered into several power sharing deals with its neighbours, especially in ensuring that the 2010 World Cup does not disappoint. The most notable of such deal was the signing recently with Mozambique.

By staff writer

© afrol News

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