HomeRegional NewsSouthern AfricaEskom committed to completing new power stations

Eskom committed to completing new power stations

Eskom Chair
Mpho Makwana
2 June 2010 – Eskom, South Africa’s power utility, said that it was committed to completing several new power stations by 2017.

The first to be completed is expected to be the 4 788 Mega Watt (MW) Medupi power plant currently under construction in the Limpopo province, followed by the 4 800 MW Kusile, which is expected to come onto the grid later.

Eskom started construction on the Medupi power station in 2007.

"We’re committed to finish Medupi and see Kusile through. Between now and 2017 we’re looking to add an extra 12 300 MegaWatts onto the grid," said Eskom Chair Mpho Makwana.

The company on Wednesday reported a net profit of R3.6 billion for the 2009/10 financial year after a net loss of R9.7 billion the previous year.

The parastatal recently managed to secure significant funding, notably a R28-billion loan from the World Bank and another R21-billion loan from the African Development Bank.

Government, Eskom’s sole shareholder, also chipped in with a R60-billion loan. R40-billion of that money has already been drawn down. The shareholder has also provided a debt guarantee of R176 billion and Eskom has already committed R117 billion of the debt guarantee this year.

Eskom’s Finance Director Paul O’Flaherty said there are other avenues which they planned to look at to source funds.

"We have the international bond markets. There’s an opportunity there. We can use the remaining R60 billion government guarantee. That can help us," he said.

Eskom said that it would tread carefully with commitments to new contracts until it had its "financial plans in order." – I-Net Bridge