Germany, through its KfW development bank, will as soon as Friday sign an agreement to lend South Africa €500 million ($543 million) to help it transition away from the use of coal-fired electricity, people with knowledge of the pact said.

The money forms part of the $8.8 billion in climate financing offered to South Africa by some of the world’s richest nations in a 2021 agreement known as the Just Energy Transition Partnership, the people said, asking not to be identified as the information isn’t public yet.

The loan is a boost for the troubled agreement, which has been beset by delays and political infighting in South Africa. Ruling party ministers and officials have expressed concern that the country is being pushed to close down its coal-fired plants, jeopardize energy security and threatening jobs.

State-owned power utility Eskom Holdings SOC Ltd. has so far closed down one coal-fired plant under a different agreement and has said that the facility is no longer viable.

South Africa’s National Treasury didn’t respond to a request for comment. Spokespeople for the German Economy Ministry and the KfW did not immediately respond to requests for comment. A call to KfW’s South African office didn’t connect.

The JETP — an agreement between South Africa, France, Germany, the US, UK, European Union, Denmark and the Netherlands - is seen as a prototype for similar agreements with Indonesia, Vietnam and Senegal.

--With assistance from Kamil Kowalcze.