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Eskom may need to consider PPP to fund expansion
Fri, 05 Jun 2009 09:12
TradeInvestSA staff


South African state-owned power supplier Eskom may have to look towards the possibility of a public-private partnership (PPP) in order to fund its ambitious expansion programme, according to a report on Reuters.

The group kicked off a huge R385-billion, five-year expansion programme last year, following a spate of power outages in the country that led to several mines being forced to shut down for days.

The advent of the global financial crisis at the end of last year has meant that Eskom has failed to raise all the capital it required.

Last week the country's power regulator said Eskom would need a 90% increase in tariffs this year if it failed to get the funding required for this year's part of the programme.

Nelisiwe Magubane, deputy director general at the country's new Ministry of Energy, said the other option for Eskom was to partner with others, or the government, to give Eskom another capital injection or supply further guarantees.

"Eskom can request government to get more guarantees, [can ask] government to do an injection or ask for a partnership so that the projects get done," said Magubane.

 

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