State-owned power utility Eskom and French development agency Agence Française de Développement (AFD) on Friday signed a financing framework agreement.

The agreement was a precursor to the conclusion of a €100 million loan over 20 years for the partial financing of Eskom's new wind farm project.

The 100 Megawatt (MW) wind farm will be built on the West Coast near the town of Koekenaap, east of Vredendal in the Western Cape and will be operational early in 2010, Eskom said in a statement.

Eskom spent time in evaluating the various wind technologies available and assessing the various associated issues, such as different wind technologies, storage systems, costs and performance data at its wind energy demonstration facility near Klipheuwel outside of Cape Town.

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