South Africa to Pay $191 Million Eskom Bailout Fundsby
South Africa will hand over 3 billion rand ($191 million) to Eskom Holdings SOC Ltd. next week as part of a capital injection into the state power utility, the National Treasury said.
The payment is part of a 23 billion rand bailout for Eskom, promised in 2014 as a rescue package for the company, which has been struggling to fund new plants while suffering breakdown at its aging operations, prompting power cuts in 2015.
While the treasury paid 10 billion rand in June and transferred 5 billion rand in December, it withheld 5 billion rand that was due by the end of last year, it said in an e-mailed statement on Friday. Following the submission of requested information, Minister of Finance Pravin Gordhan authorized the latest payment of 3 billion rand, the Treasury said.
Treasury “will be working with Eskom over the next few weeks to manage the transfer” of the remaining 5 billion rand, it said in the statement. “Eskom will submit information in early March and the National Treasury will assess this before approving the transfer.”