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South Africa Resurrects Plan to Sell Coal-Fired Power Plants

  • Finance minister says sale would enable Eskom to pay down debt
  • Plan for sales may get resistance from the utility: minister
Inside Eskom Holdings SOC Ltd. Lethabo Power Station
Photographer: Waldo Swiegers/Bloomberg

Key South African government ministers have reached a broad agreement to sell some of the state power utility’s coal-fired power plants to help reduce its debt burden, Finance Minister Enoch Godongwana said.

The accord comes two years after the plan was first raised in a National Treasury policy paper, which suggested the facilities could bring in as much as 450 billion rand ($29.5 billion). Eskom Holdings SOC Ltd.’s total debt stood at 402 billion rand at the end of March.