Eskom signs R19.6 billion loan with Chinese bank

Eskom has signed a R19.6 billion ($1.5 billion) loan agreement with China Development Bank to finance the Medupi coal power plant.

The Chinese loan will be paid back over 15 years and will add to Eskom's current R300 billion debt.

Energy expert Chris Yelland says the power utility has had to revise the schedule for the Medupi power station, which will only be on stream in 2021.

It will be about seven years late but it is coming along step by step.

Chris Yelland, energy expert and MD at EE Publishers

Yelland says governance problems and resulting cash-flow issues need to be addressed at Eskom in order to avoid the need to borrow money.

The China Development Bank is the world's biggest lender.

Eskom is expected to release its financial results next week.

Take a listen:


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Eskom offered R800 million contingency fee from China’s Dongfang company - BD

Eskom offered R800 million contingency fee from China’s Dongfang company - BD

On Friday the High Court in Johannesburg interdicted the contract.

"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

"After Glencore sold Optimum to the Guptas, Eskom reduced the R2.1 billion fine"

Deputy Editor of the Financial Mail, Sikonathi Mantshantsha says the Gupta-owned mine only had to pay 10% of the initial fine.

Eskom must not pass the buck for financial losses, says expert

Eskom must not pass the buck for financial losses, says expert

The power utility has been criticised for its apparent lack of cost controls at the public hearings into its proposed tariff hike.

Roman Crookes quits his position as Medupi project director

Roman Crookes quits his position as Medupi project director

Roman Crookes has been replaced as project director of the new Medupi power station with immediate effect and without a handover.

Medupi Unit 6 goes fully online on Sunday

Medupi Unit 6 goes fully online on Sunday

Energy expert Chris Yelland on the suspension of coal supplies to Eskom by Optimum Coal and Medupi 6’s D-day on Sunday.

Popular articles
Oscar's family unhappy with producers as movie makes SA debut this weekend

Oscar's family unhappy with producers as movie makes SA debut this weekend

The movie stars Joburg-born actor Andreas Damm as Pistorius and Victoria Secret model Toni Garrn as Reeva Steenkamp.

Statement to remove LLB programme from SA universities is misleading: Max Price

Statement to remove LLB programme from SA universities is misleading: Max Price

Max Price says Council on Higher Education's announcement that UKZN, UCT and UL could lose their LLB accreditation is not right.

DStv subscriber? ANN7 thanks you for the payday!

DStv subscriber? ANN7 thanks you for the payday!

Bruce Whitfield interviews Outa’s Wayne Duvenhage about his open letter to MultiChoice, who will pay ANN7 R245 million.

Is taking items from the hotel room stealing?

Is taking items from the hotel room stealing?

Tsogo Sun Cape regional manager explains which items are free to be taken home by guests and why.

WATCH: Innovative spray limits toilet flushes and saves water

WATCH: Innovative spray limits toilet flushes and saves water

Loo Me is a simple yet effective scented foam that takes the yuck out of "mellowing" toilets preventing multiple flushes.