CAPE TOWN, South Africa — South Africa’s drive to add new nuclear capacity in the Western Cape advanced another step as GTFSolutions Inc. said it has been appointed secondary financial advisor on Eskom’s proposed Duynefontein project, with the New Development Bank (NDB, commonly known as the BRICS Bank) expected to lead the debt package.
The advisory appointment comes weeks after South Africa’s environment minister upheld the environmental authorisation for a new 4,000-MW plant at Duynefontein, the site adjacent to Eskom’s existing Koeberg station north of Cape Town. The August decision dismissed appeals lodged by environmental groups, allowing Eskom to progress to subsequent regulatory phases, although further permits and procurement steps are still required.
In a statement shared with the media, GTFSolutions said the contemplated financing would be structured around an NDB-led senior facility, with potential co-financing from other development partners and commercial lenders. While neither Eskom nor NDB has publicly released the deal terms for Duynefontein, NDB has previously financed Eskom grid-connection upgrades through a US$180 million project finance facility, an experience that market participants say could translate into comfort with South Africa’s power-sector risk.
Duynefontein has long been one of two preferred nuclear sites alongside Thyspunt in the Eastern Cape, according to sector briefings and public documentation. The Western Cape location benefits from existing atomic infrastructure, skills, and grid links around Koeberg, which remains the continent’s only commercial nuclear station.
Koeberg itself is undergoing a life-extension programme. In July 2024, the National Nuclear Regulator approved a 20-year extension for Unit 1 to operate to 2044, while the application for Unit 2 remains under review. The extension highlights the strategic significance of the province’s “nuclear corridor” as the country addresses its longstanding power generation shortfalls and grid reliability concerns.
What happens next: permits, procurement, and oversight
Upholding the environmental authorisation does not by itself green-light construction. Before any ground is broken, Eskom will still need a Nuclear Installation Licence from the National Nuclear Regulator and generation approvals from the National Energy Regulator of South Africa. Authorities and sector observers have emphasized that multiple statutory authorizations and public participation steps are still required in sequence.
The government has repeatedly signalled that new nuclear, alongside renewables, gas peakers, and transmission upgrades, will be part of a diversified mix. South Africa’s energy department reaffirmed plans to procure around 2,500 MW of new nuclear capacity, with policy documentation and briefings since 2023–2024 outlining an RFP pathway that would attract global vendors and financiers. The Duynefontein decision aligns with that broader policy framework.
Separately, courts have shown they are willing to scrutinise major energy permits closely. In an unrelated case this week, a South African court annulled a permit for Eskom’s planned 3,000-MW Richards Bay gas plant over consultation defects. This outcome underscores how procedural compliance can shape timelines for large power projects.
How the money could work
If NDB leads the financing, lenders would likely favour long-tenor, phased drawdowns tied to construction milestones, alongside environmental and social safeguards standard to multilateral development banks. NDB’s earlier US$180 million facility for Eskom’s grid connections (backed by a sovereign guarantee) illustrates the bank’s appetite for South African power infrastructure and its preference for programmatic, multi-sub-project structures.
NDB’s capacity to mobilize co-financing has grown with its expanding membership beyond the original BRICS five; recent briefings and issuer documentation highlight additional members, such as the UAE, Egypt, Bangladesh, and Algeria, as well as the bank’s activity in local-currency capital markets, including Renminbi “Panda” bonds. Those moves could prove relevant if any portion of a Duynefontein package is structured to mitigate currency-mismatch risk between rand-denominated tariffs and foreign-currency debt.
On the borrower side, Eskom’s credit picture and sovereign support framework matter for bankability. Ratings actions since late 2023 have noted improved state support and operational stabilization, while the Treasury has adjusted the size and terms of Eskom’s debt-relief program as conditions evolve. Lenders will weigh these developments when calibrating covenants, guarantees, and pricing for any new nuclear debt.
Site, system value, and community lens
Duynefontein’s proximity to Koeberg offers integration advantages: existing grid interconnections, a skilled workforce, and an established nuclear safety culture. However, stakeholders argue that the project will still face rigorous oversight on safety and environmental grounds. The National Nuclear Regulator’s 2024 decision on Koeberg Unit 1, following an extensive review, remains a reference point for public confidence in nuclear operations and life-extension work in the Western Cape.
At the system level, proponents argue that new nuclear can provide a steady baseload to complement variable renewables and help decarbonise South Africa’s coal-heavy generation mix. Critics counter that cost and schedule risks typical of first-of-a-kind builds, as well as lifecycle waste considerations, will be expected by regulators and lenders to be addressed in detail by Eskom and its contractors during procurement and due diligence. The environment ministry’s August ruling emphasised that upholding the environmental clearance does not exempt Eskom from meeting all other legal and regulatory requirements still ahead.
Timeline still fluid
No commissioning timeline has been publicly announced, and the technology selection has not been disclosed. Market observers anticipate an extended period of regulatory work, front-end engineering, and lender due diligence before a final investment decision is made. For now, GTFSolutions’ appointment as secondary financial advisor and the expectation of an NDB-anchored structure add definition to how a potential capital stack might come together if the project clears its remaining gates.