China Development Bank loan on track, says Eskom’s Mabuza

China Development Bank loan on track, says Eskom’s Mabuza

Eskom board chairperson Jabu Mabuza testify at the state capture inquiry in Johannesburg, 22 February 2019. Picture: Nigel Sibanda

The CDB a few months ago delayed the release of a R7 billion tranche of funding from a R35 billion loan facility.

Eskom’s loan from the China Development Bank (CDB) appeared secure following talks in recent days, Eskom chairperson Jabu Mabuza said on Thursday.

“We have met with CDB and we were updated. They had a lot of questions,” he told a media briefing ahead of Public Enterprises Minister Pravin Gordhan’s budget vote speech for his department.

“I think we should be fine. We have given them all the answers and I think they are happy with the direction we are taking.”

Mabuza had returned from a trip to China earlier this week.

The CDB a few months ago delayed the release of a R7 billion tranche of funding from a R35 billion loan facility.

Finance Minister Tito Mboweni put the delay down to Chinese exchange control requirements. But media reports linked it instead to concerns over the successful completion of the Kusile power plant.

When the Chinese funding failed to arrive, Eskom had to resort to an emergency loan from Absa Capital to tide it over.

African News Agency (ANA)

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