Eskom looking for R6.9 billion loan to upgrade Medupi station

Eskom looking for R6.9 billion loan to upgrade Medupi station

- This news comes as South Africa faces nationwide stage 4 load-shedding, which experts say is costing billions

- The loan is reportedly meant to finance its cleaner air technology at the Medupi power station

- This news comes as South Africa faces nationwide stage 4 loadshedding, which experts say is costing billions

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Struggling Eskom may be receiving a R6.9 billion loan from the BRICS-owned New Development Bank.

According to IOL, the loan will be used to finance air pollution technology at the Medupi power station.

This comes as the power entity is struggling to operate, with load-shedding reinstated last week, financial problems and escalating debt.

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READ ALSO: Explainer: How much does load-shedding actually cost South Africa?

The Medupi station is meant to be producing 4 800 megawatts of power and is one of the world's largest coal power facilities.

Despite exceeding both cost and time expectations, Medupi is currently only using three of its six units.

The project that is calling for funding from the bank aims to reduce sulphur dioxide emissions, which has to be complied with according to environmental legislation.

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Eskom has confirmed that the funding will be used for all Medupi units and plant equipment. The entity says that the three units in operation are performing below capacity due to defects in the design of their boilers.

Meanwhile, South Africans and the economy are carrying the brunt of the costs of the blackouts instated while supply is restored to normal. Briefly.co.za reported earlier that an energy expert has claimed that the costs associated with loadshedding currently run at R1 billion per stage per day.

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Source: Briefly.co.za

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