France is considering helping finance Eskom, reports Business Times.
Aurélien Lechevallier, France’s ambassador to South Africa, said France was working on various plans to help Eskom.
The French foreign development agency is ready to provide financial support to help with Eskom’s restructuring, he says.
The government wants to divide Eskom into three separate business units and restructure its debt burden of R450 billion.
The financial support is likely to be structured as a loan by some partners that may include other countries such as Germany and the Development Bank of Southern Africa, the ambassador says.
A long relationship has been built because French companies often help with maintenance at Koeberg.
The French development agency AFD has been working with Eskom since 2011 to provide assistance in upgrading its power grid. As recently as last year, Eskom and AFD signed an agreement for a loan of R1.5bn to strengthen and extend the transmission network. In 2015, Eskom signed an agreement of R2.3 billion to finance power distribution networks in the Eastern Cape, Limpopo and KwaZulu-Natal