Eskom signs $2.5B loan agreement after revealing $174M loss
South Africa, Johannesburg: South African state-owned power utility Eskom has signed a $2.5 billion loan agreement with the China Development Bank, which will form part of the funding of Eskom’s build programme and specifically the Kusile Power Station, reports ESI-Africa.
This agreement came about shortly after the company published its Integrated Report for 2018, revealing a financial loss of $174 million for 2017/18, with $1.5 billion of irregular expenditure dating back to 2012.
According to the company’s acting chief financial officer, Calib Cassim, Eskom’s financial health has deteriorated in recent years due to lower electricity demand, low tariff increases, and above-inflation cost increases.
Despite these results and the financial and governance challenges that the company faced, Eskom noted that it has continued to deliver improved operational performance in the financial year that ended on 31 March 2018.