BRICS Bank approves R5 billion loan for Transnet

The loan will be used to renew Transnet’s rail freight sector, with particular emphasis on infrastructure and fleet modernisation.

Speaking at a high-level energy seminar held under the auspices of the 9th Annual Ministerial Meeting of the new BRICS Development Bank at the Cape Town International Convention Centre, Vice President Paul Mashatile said the Transnet project was aimed at the country’s expansion.

“We also appreciate the bank’s plans to help Transnet address the shortcomings of its rail freight infrastructure. The Transnet project in particular is of paramount importance in ensuring an internationally competitive freight system, enabling the continued expansion and diversification of the country’s economy.”

“During our discussion, we agreed that the slow disbursement of approved projects in South Africa is a problem. I have raised this matter with the Minister of Finance, Enoch Godongwana, and his team at the National Treasury, who have promised to look into it.”

Mashatile added that the NDB has approved $2.3 billion for 10 renewable energy projects covering solar PV, wind power, hydropower, biomass and hybrid systems with storage.

The aim of these projects is to install a generating capacity of 2.8 GW, which will reduce CO2 emissions by over 4 million tonnes per year.

“We are particularly keen to learn from China’s experience in rapidly expanding renewable capacity and modernizing grid infrastructure, India’s success in promoting rural electrification and integrating large-scale renewable projects, Brazil’s expertise in hydropower and bioenergy, and Russia’s strategies for managing its vast transmission grid and its progress in nuclear power.”

“We hope to gain knowledge on effective models for private sector participation in the development of transmission infrastructure, strategies for balancing grid stability with the integration of variable renewable energy sources, innovative financing mechanisms for large energy projects, and best practices in managing the socio-economic aspects of energy transformation.”

He added that the government is in the process of separating Eskom into three separate entities: generation, transmission and distribution.

“This decoupling will increase efficiency, improve accountability and open up the sector to much-needed competition and investment.”

“We have also implemented a debt relief programme for Eskom, committing R254 billion over the next three years. This financial support is crucial to Eskom’s operational stability and will enable the utility to invest in critical maintenance and upgrades to existing infrastructure.”

“Second, expanding manufacturing capacity: we have taken a number of steps to expand our manufacturing capacity.”

“This includes removing the licensing requirement for private power generation projects, paving the way for businesses and communities to generate their own electricity.”

“Through our Renewable Energy Independent Power Producer Procurement Program (REIPP PP), we continue to bring significant renewable energy capacity to the grid.”

“The latest bid windows are designed to accelerate the deployment of new generation capacity.”

“We are also exploring the potential of natural gas as a transition fuel, recognizing its role in providing flexible, dispatchable energy to complement our growing fleet of renewable energy sources.”

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