Eskom has been afforded an opportunity to regain some stability in the face of nationwide power cuts. BRICS has announced that they will be extending a R11 billion helping hand to the embattled entity.
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BRICS has extended a helping hand to the crippled state-owned entity, Eskom, in an effort to restore stability to South Africa's power supply.
According to The South African, the funds will be going to restoring damage at the Medupi power plant and increasing Eskom's storage capacity.
There is an additional R2.6 billion loan on the cards to fund other projects, including repairs to transmission lines, which have added to the load-shedding woes.
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While Eskom's debt is hovering around R400 billion, this will be a small relief but a relief nonetheless at least in the long term.
The BRICS organisation was formed by Brazil, Russia, India, China and South Africa and serves as a collective fund for all member states. These funds are utilised for infrastructure projects and Eskom definitely qualifies.
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KV Kamath, the President of the National Development Bank, commented recently that restoring stability at Eskom was a priority:
“Power is now a critical element in South Africa’s infrastructure and at this point in time it is imperative that we work with the government in alleviating this problem. We are equally clear that this won’t happen overnight, so there is always a need to extend a hand during the transitioning process and that’s what we are doing.”
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Source: Briefly News