Eskom announces R324 billion for new power plant builds
State-owned utility Eskom has announced that over the next five years it will increase its capital expenditure by 44% to R324 billion, in order to build new power stations. Eskom added that it had R85 billion of funding – representing nearly all of the capital needed – for 2016 and 2017 in a presentation to parliament.
Anoj Singh (pictured), Eskom CFO, said:
"There is a significant amount of the funding that will be required over the next two years that is relatively committed already in terms of signed facilities that we can draw on as and when projects require the funding."
Eskom expects to add 5620 MW to South Africa's power network by 2018, through the three new power plants builds, as well as when units at Medupi and Kusile's coal-fired plants come online.
According to Brian Molefe, Eskom CEO, the company had managed to save R9 billion and increase net profit by 22% to R11.3 billion by the end of September and was not in danger financially. "Our liquidity position has improved. We are nowhere near bankruptcy as was said a few years ago," Molefe previously told parliament.