Nov. 10 (Bloomberg) -- Eskom Holdings Ltd., South Africa's state-owned power utility, will sign a $500 million dollar loan with the African Development Bank to help fund its expansion, according to the country's treasury.

``Today Eskom is signing a $500 million agreement with the African Development Bank,'' National Treasury director Lesetja Kganyago said in a telephone interview from Sao Paulo. ``We are also in discussions with the World Bank to source funding for Eskom's development.''

Eskom needs to secure funding for a 1.3 trillion rand ($132 billion) infrastructure program over the next 17 years to double the country's generation capacity to 80,000 megawatts.

The African Development Bank is a multilateral finance institution that funds infrastructure development projects on the continent.

To contact the reporter on this story: Garth Theunissen in Johannesburg gtheunissen@bloomberg.net

Last Updated: November 10, 2008 06:02 EST