More African nations are still running to China for infrastructure development funding without watching their back to see the after effect which include massive abuse of expatriate quotas and working without permits.
Nigeria, Ghana and other sub Saharan economies has been running to China for one form of loan or the other to finance projects and many of this programmes so to finance are structured in way that only a Chinese firm will deliver the project which translates to double income for the world power.
The latest in the spree is the South African state-owned power utility Eskom, which signed a $1.5 billion loan agreement with the China Development Bank (CDB). The deal will form part of the financing of the Medupi Power Plant.
The signing ceremony was held at Eskom’s head office Megawatt Park in Sunninghill, Johannesburg.
Eskom’s interim group chief executive Johnny Dladla, said: “We are pleased to see the continuation of the journey of co-operation that we started with our Chinese partners last year.”
“The conclusion of this second loan agreement continues to demonstrate financial markets’ confidence in Eskom and South Africa notwithstanding the challenging market conditions.”
“We are confident that the agreement will cement Eskom’s relationship with the CDB. This loan will also aide us in ensuring that we complete the Medupi project and ensure security of energy supply.”
Eskom’s chief financial officer, Anoj Singh who sounded optimistic in the agreement said “The loan fulfils our intent to diversify Eskom’s funding sources; to date Eskom has secured 77% of this fiscal year’s funding requirement (including cash on hand), we remain resolute that we will fully execute the required funding for the year.
“We are confident that our liquidity levels and financial profile will continue to improve and stabilise.”
Eskom interim chairperson Zethembe Khoza, applauded executive management’s overall turnaround strategy, following the assessment of Eskom’s key performance targets.
In a statement, Eskom Exco said it has focused efforts on turning around the company’s operational and financial performance.
Khoza noted that Eskom has not implemented load shedding for the past 23 months, and that the plan was to continue implementing appropriate levels of planned maintenance to ensure long-term plant reliability.
