Eskom gets financing for upgrades
The African Development Bank has
approved a R2.886-billion (about
USD217.9-million) loan to South Africa’s
power utility Eskom for upgrading and
expanding transmission facilities.
The transmission lines will provide
additional power evacuation paths
for new generation capacity, ensure
availability of power for future load
growth, enable the reduction of network
losses, and ensure safety of personnel
and assets during network operations to
ensure compliance to the Grid Code.
The ETIP aligns with South Africa’s
National Development Plan 2030, geared
The funding supports the Eskom
Transmission Improvement Project
(ETIP), which will see the construction
of 555km of 400kV transmission lines
in KwaZulu-Natal and Mpumalanga
provinces, the upgrading of substation
equipment, and the improvement
of various substation earth mats in
Mpumalanga.
Eskom has received funding for the Eskom Transmission Improvement Project.
towards financing infrastructure to
support the country’s medium- and long-
term economic and social objectives.
The loan includes an additional co-
financing of USD25-million from the
Africa Growing Together Fund (AGTF).
The Bank’s contribution, covered by a
South African government guarantee,
will finance up to 77% of the critical
project; Eskom will provide 15%. These
investments will enhance regional energy
trade and end-user energy access for
industrial development, and address the
potential addition of 130-million on-grid
connections by 2025.
Oil and gas activity in sub-Saharan Africa
of economic growth and is once again attracting investor interest
as international energy prices recover. Africa’s proven oil and gas
reserves account for 7.5% and 7.1% of global reserves, respectively.
However, Africa’s challenging operating environment, a lack of
transparency in the resources sector, regulatory uncertainty and
policy instability, and an ongoing infrastructure deficit, have often
been a deterrent to investment. In addition, the lack of sustainable
economic development gained by harnessing the windfalls of the
sector for economic diversification is another challenge.
The Deloitte report highlights Africa’s potential in the oil and gas sector.
Deloitte’s Africa Oil & Gas State of Play report provides an
overview of the most notable destinations for oil and gas activity
and investment across nine sub-Saharan African oil and gas
producing countries.
The report highlights that the African continent continues to boast
a vast array of potential opportunities, particularly in the oil and
gas (O&G) sector. The sector has historically been a primary driver
46 AFRICAN MINING JANUARY - FEBRUARY 2019
Disruptors such as liquefied natural gas (LNG) are likely to change
the face of the industry. The growing prominence of renewables
could also have far-reaching implications for the African oil and
gas sector.
Furthermore, digitalisation is already having an impact on the
global oil and gas sector and is set to also disrupt the sector
— where almost 30% of production stems from legacy fields.
Sub-Saharan African’s oil and gas space is ripe for disruption,
presenting opportunities for producers and other industry players.
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