Plans for separate power transmission firm hobbled by Eskom debt burdens | Fin24

South Africa’s plan to create a power transmission company that will attract the investment needed to strengthen the national grid has been hobbled by its restrictive debt arrangements with parent Eskom Holdings, two people familiar with the situation have said.

Eskom’s board will also approve an annual borrowing plan for the transmission company that will take the form of inter-company loans, the utility said in its presentation. Additional borrowing will need to be approved by Eskom. "The subsidiarisation of NTCSA is the first step in the total unbundling of the electricity industry," Eskom said in a response to queries. It didn’t answer questions as to whether the arrangement was temporary or whether it would inhibit partnerships with private developers.

"Creditors at the Eskom holdings level don’t want to lose the security," said Vuyo Ntoi, co-managing director of Old Mutual's African Infrastructure Investment Managers, which has invested in renewable energy plants in South Africa."It will be a challenge if the transmission company can’t take on additional debt."

Yawn - just another corrupted scheme in the works

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