11 October 2019 - NW1001
Joseph, Mr D to ask the Minister of Finance
Whether, with reference to his reply to question 2507 on 9 October 2018, the Government signed any funding agreements and/or guarantees with China Development Bank after 2014; if not, what is the position in this regard; if so, (a) which state entities were involved, (b) what was the (i) purpose and (ii) conditions of the agreements and/or guarantees and (c) what amounts were agreed to?
In 2015, Government approved a government guarantee agreement with China Development Bank for an amount of US$5 billion for Eskom. This guarantee is part of the R350 billion government guarantees granted to Eskom to assist the entity in raising funding for its build programme. The condition for the guarantees is that they must be utilised for funding of the Capital expenditure programme. Therefore, this guarantee is to assist Eskom in the funding of the Medupi and Kusile power stations.