Eskom secures 75% of its funding for FY2016/17

Tuesday, 04 October 2016: Eskom and the China Development Bank (CDB) yesterday signed an inaugural US$500 million credit facility agreement. The facility will contribute towards Eskom’s current capital expenditure programme. The successful execution of this credit facility increases the funding secured for financial year 2016/17 to R51 billion, meaning we have secured 75% of our R69 billion funding requirement.

The following is a speech delivered by Eskom Group Chief Executive Brian Molefe at the Eskom and China Development Bank loan signing ceremony yesterday.

“…Today is a momentous occasion for it has brought both our organisations together in what can only be described as the inevitable growth of people. As fellow BRICS countries, we have committed to leverage off each other’s strengths which leads to prosperity of all.

A prosperous community, organisation or country can only continue to thrive if there is an inherent belief from its people, employees or citizens, or even stakeholders that any cause/entity is worth committing to. That is half the battle won, for determination to succeed becomes the impetus to go the extra mile.

The loan ceremony, which we celebrate today, will be the catalyst of many projects and developments which will lead to the prosperity of the South African nation. It will touch millions of lives, from job creation to skills development, uplifting communities as well as enhancing Eskom’s key role of providing electricity in an efficient and sustainable manner.

With this partnership, Eskom can continue to focus on empowering our people, for example, through build site projects such as Medupi and Kusile.

All of our projects focus on the long term benefits for communities in and around areas where Eskom operates as well as the rest of the nation. Kusile will continue to change lives in the Nkangala district community and Medupi will continue to make a difference in the lives of the people in the Limpopo province.

These build sites have witnessed many milestones which were only achieved due to stakeholders and partnerships that we entered into. These sites will bolster the electricity supply, provide stability in terms of continued power supply and enable economic growth. Our partnership with you translates into further milestones being achieved in the months and years ahead. Something we look forward to.

It has always been my vision to re-establish Eskom as a catalyst for growth and not a constraint. As I have said before, Eskom is more than just electricity. We touch the lives of our consumers. We want to make a valuable contribution and impact to the lives of our youth who are our future leaders.

We want to ignite industries and entrepreneurship. This partnership is a direct catalyst for growth. It allows us to meet the growing demands of our nation as it is expected that electricity demand will increase by about 1% every year. It allows us to produce world-class projects, managed by the talented men and women in the Eskom family. With the help of our investors, we are creating the bright future that South Africans deserve…I thank you.”

Statement issued by Eskom, 4 October 2016