new development bank ‘not worried’ about eskom repaying r11bn loan - battery energy storage system
The bank is looking at priorities, specific given the urgent need
The purpose loan will ensure that public utilities use the new development bank to put more power into production (NDB)
Eskom's restructuring plan will be closely watched, but will not wait for the process to unfold until two loan applications worth $0. 78 billion are approved by the power company (
About R11 billion).
Kundapur Vaman Kamath, president of NDB, said he pointed out in a telephone interview that approving loan applications for Eskom is a priority because the government, especially Eskom, is under pressure
"Our own assessment is that restructuring may take time and demand is urgent-so we will continue lending now to meet demand," he said . ".
"We are considering priorities.
These seem to be in the infrastructure area, where electricity seems to be the first thing the country needs.
"We have learned that Eskom is likely to restructure and we think this is what the country needs," he said . " He added that the bank made it a priority to approve loans from Eskom and urgently approved them
When asked if the bank was concerned about Eskom's ability to repay the loan given Eskom's poor financial situation, Kamath said that the bank was not worried because the loan would be guaranteed by the government, if it fails, the country will have to cover it.
"This is a specificpurpose loan [
$0. 48 billion]
Make sure Eskom puts more power into production use.
This demand is urgent, and our current funding is to ensure their new capabilities [1]Eskom]
"The settings in the Medupi power project are on line," he said . ".
A spokesman for the NDB said Eskom had applied for a second $0. 3 billion loan to boost its battery storage capacity.
Kamath said Eskom needed private money and banks deliberately used more money for renewable energy.
He noted that, in the first year since July 2015, all loans had gone to green energy projects, and more sectors had been considered since then.
"Over the past three years, our project has become quite extensive.
South Africa has an impressive absorption of the bank's loans, Camas said: more than $1.
€ 5 billion has been lent to the country, and that figure will increase to $2 by the end of the year. 4 billion.
This number includes a r3.
A 2 billion loan was granted to the Lesotho Highland Water Conservancy Project, which, although built in neighbouring countries, was secured by the South African government.
"We have a pretty strong channel and we hope we can do $2 by the end of this year.
A loan of 4 billion euros was made to South Africa.
"We are interested in doing more things," he said . ".
Read: Eskom shock: Kamath said that Brazil has just simplified the process of obtaining loans, and Brazil has barely obtained loans from banks. "Mistakes" may push electricity prices up by 50%.
"When we started, we found that our two members, China and India, had the most streamlined system and were able to apply for a loan.
"We found that there are different systems in the other three countries-Russia, South Africa and Brazil.
"Russia did the right thing last year.
South Africa is getting it now.
Brazil is very busy and should do it well before the second half of this year.
"Borrowing money is not a hesitation, but more about how to borrow money," he said . ".
Kamath said the bank will open an office in Brazil later this year-the regional office for the Americas, which will make things easier.
Camas said the bank officially opened the Regional Centre for Africa in Johannesburg in August 2017.
The regional centres work closely with government, public and private sector agencies to identify projects with significant development impact that can be supported by the National Development Bank.