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Major Eskom projects on hold

Aug 12 2009 09:56

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Johannesburg - Electricity parastatal Eskom has put five projects, worth more than R54bn, on hold as a result of its funding shortfall, Business Report said on Wednesday.

This raised the threat of future power crises, the newspaper said.

It quoted Cornelis van der Waal, a Frost & Sullivan energy analyst, as saying the project halts would reduce Eskom's spending, deepen South Africa's recession, cut opportunities in employment creation, and affect suppliers of cement, steel and other commodities.

Van der Waal said the cautious spending was aimed at helping Eskom focus on its priority projects.

Only three projects, Medupi, Kusile and Ingula, which together cost about R235bn, would proceed.

According to Business Report, the Tubetse pumped storage project in Mpumalanga, worth R19bn; Upington's 100 megawatt concentrated solar power plant, projected at between R2bn and R6bn; and the R3bn 100 megawatt wind farm in the Northern Cape had been put on hold.

Also affected was the R1.8bn Majuba rail venture and CIC Energy's R24bn Mmamabula power project in Botswana, the newspaper said.

"Everything is on track at Medupi, Kusile and Ingula," Andrew Etzinger, Eskom's spokesperson was quoted as saying.

"The government is committed to supporting these projects," he added.

- Sapa

 
 
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