Question NW2177 to the Minister of Public Enterprises
26 October 2016 - NW2177
Mazzone, Ms NW to ask the Minister of Public Enterprises
What are the (a) full terms, (b) timelines, (c) costs and (d) other conditions of the latest credit agreement to the amount of US$500 million that was signed between the China Development Bank and Eskom recently; (2) whether the specified terms will be the same for the next expected instalment of US$4,5 billion from the specified bank; if not, (a) why not and (b) what terms will change; if so, what are the relevant details?
Reply:
(1) The purpose of the loan is to finance the Capital Expenditure Programme.
(a) The amount of the loan is US$500 million. The loan will be disbursed in US dollars in one single disbursement after the fulfilment of conditions precedent to the drawdown.
(b) The loan is a Three (3) year facility with the last repayment of capital on the 3rd October 2019 (3 years from the signing date of the credit agreement – 3rd October 2016). Repayments are quarterly starting from the 3rd January 2017.
(c) This information is confidential as it contains commercial terms between the parties and therefore it cannot be disclosed.
(d) This information is confidential as it contains commercial terms between the parties and therefore it cannot be disclosed.
(2) This facility is currently under negotiation between the parties. The details of the commercial terms and conditions of the loan will however remain confidential between the parties.