Semiconductor firms provide a timely boost with South Korea’s Samsung posting its best second-quarter profit in four years
Theory about the difference between sum of parts market value and share market value seems right
‘The government is doing very little to mitigate the consequences this will have for everyone living in SA,’ says Amnesty SA’s Shenilla Mohamed
ANC national chair Gwede Mantashe and President Cyril Ramaphosa have previously defended cadre deployment
Remgro and consortium partner MSC have increased their offer to 504p per share for SA’s most valuable hospital group
The move will speed up the process of procuring additional power for the grid
Business Day TV talks to CEO of the Small Business Institute, John Dludlu
Johnson had been deserted by all but a handful of allies after the latest in a series of scandals broke their willingness to support him
Both sides make one change for second Test in Dunedin
The vertiport at Seletar could serve as a global model for what the future of mobility may look like
The risk of SA’s struggling state power utility going bust does not appear to faze one of its biggest creditors: the World Bank.
The Washington-based lender agreed to lend Eskom $4bn almost a decade ago to boost its generation capacity and avoid a repetition of rolling blackouts. Mismanagement and construction cost overruns have seen the state of the utility’s finances going from bad to worse since then, forcing the government to bail it out. Details of a R230bn rescue package are due to be unveiled soon.
“We are encouraged by efforts of the government of SA to support Eskom and assurances that it will not to allow it to fail,” the World Bank said in an e-mailed reply to questions.
Under its Eskom Investment Support Project, the World Bank agreed to lend the utility $3.75bn, including $3.1bn to help it complete its new Medupi coal-fired plant, $260m for wind and solar power projects and $485m to develop a railway to transport coal and other projects. Eskom has drawn down 82% of that funding, and 21% of a separate $250m loan to boost green energy production.
While construction of the 4,764MW Medupi project is running years behind schedule and way over budget, the World Bank said it was “assured by Eskom’s commitment to complete the project”, and that it continued to work closely with the utility on its implementation.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.