Eskom has received a $500 million fund to aid the expansion of power supply across South Africa.

The funding from the African Development Bank will aim to ensure the country does not become victim to some of the platinum mine closures and load shedding processes that have affected it so far this year.

Development is needed to ensure that electricity suppliers are increased and investors have been unwilling to front the cash.

The bank's annual report, cited by Reuters, said: "A non-sovereign guaranteed long-term loan in the amount of UA (units of account) 333.04 million (US $500 million) was granted to Eskom by the bank, with a repayment period of 20 years including a grace period of five years."

Eskom is planning to spend 343 billion rand over a five year period on generating capacity to safeguard the country's mining industry and economy.

"The bank's loan (to Eskom) is intended to assist the government in achieving the GDP growth target of six percent per annum from 2010," the report said.



Source:

AfDB lends $500 million to S.Africa's Eskom, 14/05/08
http://africa.reuters.com/business/news/usnBAN424693.html