Eskom loses A portion of the debt relief amount previously allocated from the Treasury due to failure to meet the attached conditions.
According to a budget review released by Treasury on Wednesday, the government plans to transfer R76 billion and R64.2 billion to Eskom this financial year and next, respectively.
The report said: “The amount of transfers in each of these years was R2 billion lower than forecast due to the company's failure to complete the disposal of Eskom Finance Company as provided for in the debt relief terms.” Stated.
The decision signals the Treasury's firm stance that it will only provide relief to debt-ridden state-owned enterprises if they meet strict criteria, such as implementing restructuring plans and selling non-core assets. There is.
Last year, the government gave Eskom a R254-billion debt relief package to strengthen its financial position and help repair and refurbish its power plants to eliminate daily power outages that hamper economic growth.
The Ministry of Finance has announced a “short-term option for off-balance sheet financing to facilitate private investment in South Africa's electricity grid without adversely impacting Eskom's balance sheet and finances” with International Finance, the private lending arm of the World Bank. We are cooperating with the public corporation. ”, according to the budget review.
A pilot project will be carried out to test market appetite for the scheme, with a request for proposals expected to be issued by the end of July.
transnet
The Treasury made no mention of a report by German consultancy Vgbe Energy that made recommendations on how operational inefficiencies at Eskom's coal-fired power stations could be improved. Mr Godongwana had previously said the proposal would be implemented after consideration by the utility, which received the report late last year.
Separately, the Ministry of Finance will repay loans that matured in the four months to March, out of a total of R47 billion granted at the end of last year to state-owned ports and freight rail operator Transnet. announced that it had authorized only R14 billion to be used as debt guarantee. .
Read: Eskom loses R7.5 billion in three months
“This is to ensure that Transnet delivers on the short-term initiatives of the recovery plan and is aligned with the Cabinet-approved freight logistics roadmap,” the budget review said. — Sambile Sele, René Volgraf and (c) 2024 Bloomberg LP
