Eskom Eschews $2.5 Billion of Cheap Loans as Climate Pact Founders

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(Bloomberg) — South Africa’s state power utility has failed to tap $2.5 billion of cheap loans to build critical transmission infrastructure that would help end the country’s crippling energy crisis.

That’s brought a landmark climate finance agreement — the Just Energy Transition Partnership — to a virtual halt, and extends the country’s reliance on coal plants. Finance ministry pressure on Eskom Holdings SOC Ltd. to not take on new debt and a lack of clarity on how private investors can participate are hindering the deployment of about $7 billion of energy financing, according to a US Treasury official and six other people familiar with the situation.