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Johannesburg - Having secured a controversial R27.3bn ($3.75bn) loan from the World Bank, Eskom is setting about raising a further R45bn, said Eskom finance director Paul O'Flaherty.
In an interview with Fin24.com, O'Flaherty said Eskom had appointed JP Morgan and Credit Suisse which would "scour the markets" over the next two months in search of a funding plan.
"We have appointed funding advisers to find the most optimal ways of funding the gap. Over the next six weeks they will be giving us a firmer plan."
The balance of the funding would be for Kusile, a second 4 800 MW power station in the country's Mpumalanga province. The World Bank loan was for Medupi in Limpopo province.
"The funding in place will carry us through the next 36 months," said O'Flaherty. Eskom has about 18 months to fill the gap. "By mid-May we will have a firmer plan for Kusile," said O'Flaherty.
The R45bn comes in addition to the proposed sale of a maximum 49% stake in the proposed Kusile station. The projected proceeds from the partial privatisation are about R20bn.
O'Flaherty was, however, quick to point out that the project will not be delayed because of the R45bn deficit.
Between 5% and 10% of the construction work has already been done at Kusile, and the first of six generating units will be commissioned by 2014, said O'Flaherty. "We have placed 70% of all contracts for Kusile."
Commenting on the World Bank loan, O'Flaherty said it had effectively plugged capital shortfalls for the construction of the Medupi power station.
"There's no funding shortfall for Medupi and construction work is going right ahead," O'Flaherty told Fin24.com.
He added there would be no construction delays at the 4 800MW Medupi coal-fired station as all the required funding is now in place.
The first of six generating units at Medupi is still expected to be commissioned by mid-2012; it will be the first new power station in nearly 30 years.
In January, Eskom said over 10% of the construction work had been done at the station, a figure O'Flaherty now says is "way above 10%".
"Medupi will be built within budget and on time," Eskom generation business chief officer Brian Dames said at the time. The project's total cost stands at R125bn.
An agreement on the $3.75bn with the World Bank will be signed after a week. After that, the funds will be available immediately to be "drawn down as the costs arise". That means that whenever Eskom needs to pay for inputs and equipment, it will draw on the facility.
- Fin24.com