Chinese investment a sign of confidence: Eskom CEO

Phakamani Hadebe
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Eskom CEO Phakamani Hadebe says the Chinese investment into the power generator is a sign of confidence in the cash strapped state owned utility.

Eskom has secured a R30 billion loan agreement from the Bank of China.

This increases the utility’s funding requirements to 66% of its R72 billion target.

Hadebe says the utility expects to have concluded all its funding requirement in the next two months.

This loan will be used for construction of the Kusile power station.

The loan is part of the R191 billion investment committed by the Chinese government.

Power utility Eskom has been struggling with cash problems amid allegations of rampant corruption and widespread maladministration.

This week Eskom announced that it had made a loss of R2.3 billion for the 2017/18 financial period.

The power utility also announced irregular expenditure of almost R20 billion since 2012.

Hadebe says the Chinese announcement shows confidence in the new management at Eskom.