budget 2019
INFRASTRUCTURE: Eskom gets more than just a bailout
Over three years, the utility will get 85% of the budget for energy expenditure, to spend on Medupi and Kusile
The government plans to invest R865bn in infrastructure in the next three years. According to the National Treasury, state-owned entities (SOEs) will account for most of the capital investment, spending a projected R339bn over three years. Municipalities will spend R205bn over the same period and provinces R185bn. The Treasury says in the Budget Review that the bulk of the allocations to SOEs such as Eskom, Transnet and the SA National Roads Agency (Sanral) will go towards the expansion of power generation capacity, upgrading and expanding the transport network and the improvement of sanitation and water services. "Energy expenditure is expected to total R158.1bn over the next three years, accounting for 18.3% of total infrastructure spending. Eskom accounts for R134.3bn, or 85%, of this," the Treasury says. In the three years, Eskom’s biggest projects will be the Medupi and Kusile power stations. A total of R17.4bn has been set aside for the government programme to broaden access t...
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