Eskom finalises funding plan

Johannesburg - Since 2005 Eskom has spent R98.9bn on its capital expansion programme and it expects to spend another R331bn between this year and 2013.

Financial director Paul O’Flaherty says the utility will complete its final funding plan for Eskom’s construction programme within two weeks.

The funding plan sets out exactly how and from where Eskom plans to get money to finance all its capital projects over the next three years.

In April, the electricity provider declared the plan would be completed by June. At that time it said it had a R45bn funding deficit.

On Monday O’Flaherty admitted that the plan was still incomplete, but said the good news was that Eskom had workable solutions.

He said that in recent weeks the power utility had worked hard with the departments of public enterprises and energy, as well as National Treasury, to finalise the final basket of solutions. He was pleased to say that the respective ministers were committed to finalising the process.

The final process – approval of the decisions taken – would be concluded during this week and the next.

O’Flaherty said as soon as approval had been obtained, the company would announce the final funding plan.

The company's three major projects under way include two coal-fired power stations, Medupi in Lephalale (Ellisras) and Kusile near Delmas in Mpumalanga. The third project is Ingula, a hydroelectric scheme in the Drakensberg.

The total final estimated cost of these three projects is about R287bn: R125bn for Medupi, R141bn for Kusile and R21bn for Ingula.

These projects represent the bulk of the R98.9bn already spent. The amount includes capitalised interest.

- Sake24.com

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