Johannesburg - Power utility Eskom will halve its R40bn debt shortfall
- which includes the proceeds of three years of proposed tariff
increases - if talks with the World
Bank for a R23bn ($3bn) loan
agreement unveiled on
loose freshwater pearl Tuesday are successful.
Speaking to
news agency I-Net Bridge, director-general of the National
Treasury Lesetja Kganyago said "alternatives [were] taking place" in
respect of Eskom's financing plans. It was easier for Eskom to approach
the World Bank than government, he said.
Lesetja was responding to a question on whether government was looking
to alternatives to raise money rather than saturating the local capital
market.
Interestingly, Finance Minister Pravin Gordhan did not mention plans to finance Eskom's R40bn shortfall in
cultured pearl jewelry his Medium-Term Budget Policy Statement released to parliament on Tuesday.
Gordhan conceded that this meant the shortfall would have to be
recovered from the staggering price increases demanded by the state
electricity provider. "There is no new money," he said.
Eskom stunned South African consumers earlier in October when plans for three price hikes over the next three years were leaked.
Eskom made an application to the National
Energy Regulator of South
Africa (Nersa) to approve the increases, the first of which will become
effective in April. Nersa has already permitted Eskom to
increase this
year's price by 31.3%.
Eskom said the hike would be an average nominal 42.8% or 45% over three years when purchases from
freshwater pearl necklace some independent power producers were included.
Kganyago said a number of alternatives to tapping local markets had
been considered ahead of opening talks between Eskom and the World
Bank, including export
credit agencies. Eskom has a facility for $2bn
with the African Development Bank, said Kganyago.
Posted at 10:04 pm by wholes51
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