The loan will be drawn over five years and does not utilise guarantees from the South African government.

Eskom’s capacity expansion projects will add 12,300MW of additional generating and transmission capacity to the national grid by 2017.

The projects include the Medupi and Kusile coal-fired power stations as well as the Ingula Pump Storage scheme and associated transmission infrastructure.

DBSA chief executive Paul Baloyi said that building a sustainable and secure energy supply is one of many priority areas that DBSA will aggressively pursue to complement the government development agenda to address key development and socio-economic issues faced by the country.