The New Development Bank, NDB and Development Bank of Southern Africa, DBSA recently signed a $300 million Greenhouse Gas Emissions Reduction and Energy Sector Development Project loan agreement.
According to Banker Africa, under the Greenhouse Gas Emissions reduction and energy sector development project, BRICS bank would support renewable energy projects in South Africa and help the economy to shift to a more sustainable energy path.
Also, the project is expected to bring significant developmental impacts through the subprojects, increase in generation capacity from renewable energy sources and an increase in the efficiency of the energy sector in South Africa.
Meanwhile, Brics Bank also signed a $180 million renewable energy Integration and transmission augmentation project loan agreement with Eskom. The project aims to integrate a total of 670 MW of renewable energy into the Eskom’s grid.
Apparently, the NDB’s Project Finance Facility (PFF) is expected to be used to support the development of grid connection infrastructure, which is vital for the development of renewable energy projects. Similarly, the PFF will also support renewable energy development and reduce the country’s reliance on fossil fuels.
Meanwhile, the NDB pledged to provide a loan without a sovereign guarantee to the national financial intermediary DBSA.