Budget 2017
INFRASTRUCTURE: Eskom and Transnet lead the pack
Government extends power utility’s R350bn guarantee by six years — but it will not be used to cover nuclear build. Meanwhile, the state transport
Government entities will spend about R433bn on capital goods over the next three years, most of which will be spent on fixed infrastructure by the state’s six largest companies. This will take total expenditure on infrastructure to over R1 trillion since 2012, as these entities have already spent R514.4bn, finance minister Pravin Gordhan said in parliament this week. Eskom and Transnet are at the forefront of the capital expenditure drive, having taken up 74% of the total. This was spent by Eskom bringing online 1,900MW of electricity-generating capacity and transmission infrastructure, while Transnet’s acquisition of locomotives and investment in rail infrastructure added 26.4Mt of capacity for its general freight business.
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