Posted by
jiezi31 on Tuesday, November 24, 2009 10:19:50 PM
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.