South Africa’s state-owned power company Eskom has received two loans worth US$365mn to build the 100 MW Sere wind project.

The funding comprises a US$265mn loan from The African Development Bank (AfDB), and a US$100mn loan from Clean Technology Fund. Both loans are guaranteed by the South African government.

Eskom hopes to begin construction of its first-ever renewable wind and solar generation project at Vredendal, in South Africa’s Western Cape early next year.

The loan signing took place in Washington DC by South Africa’s minister of public enterprises, Malusi Gigaba and minister of finance, Pravin Gordhan.

Finance minister Pravin Gordhan says: “This is an important step in securing funding which will enable Eskom to contribute to the realisation of South Africa’s commitment to diversify in its energy mix and reduce its carbon emissions over time.”

In 2009, the AfDB signed a €1.86bn loan for the Medupi power project.