neobyte
21-04-2004, 09:44 AM
http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=409763
Eskom writes down R649m because of slow SNO licensing
April 21, 2004
By Frank Nxumalo
Johannesburg - Eskom had written off more than R600 million it had invested in the fixed-line second network operator (SNO) because of the unending delays in licensing the telecoms competitor, it emerged yesterday.
The investment had been made by Eskom Enterprises, the electricity utility's commercial subsidiary.
A R154 million investment in Lesotho utility Mountain Communications has also been written off.
Presenting Eskom's annual results to December 2003 yesterday, chief executive Thulani Gcabashe said Eskom Enterprises had invested R748 million in the roll-out of the Fibre Optic Network, the telecommunications division formerly known as Easitel.
"The delay in the issuing of the licence to the SNO prompted the board to raise an impairment provision of R649 million against this investment. The provision will be reviewed when the licence is granted," Gcabashe said.
Gcabashe said there were "differences of interpretation of licence requirements" with Lesotho.
"But we are quite confident that we will reach an accommodation with the Lesotho government in the near future. This [R154 million] provision is related to certain network roll-out requirements in terms of the licence.
"It was considered prudent to make a provision which will be reviewed once these issues are resolved."
Public enterprises minister Jeff Radebe announced at the presentation that Eskom would spend up to R100 billion over the next five years building new power stations and recommissioning Camden, Grootvlei and Komati, the three mothballed power stations in Mpumalanga, to meet demand.
Radebe said the government had prescribed a clear developmental role for state-owned enterprises and, like others, Eskom would continue to be measured by its ability to deliver on this developmental mandate.
"Eskom has electrified another 175 396 homes, exceeding the government target of 164 107, including those of farm workers, indicating Eskom's commitment to development at grassroots level," he said.
The new power stations should come on stream by 2011 while Camden, Grootvlei and Komati, in that order, should be recommissioned by next year. Gcabashe estimated these three power stations to have a total capacity of 3.5 megawatts. The recommissioning should be completed by 2007.
Eskom writes down R649m because of slow SNO licensing
April 21, 2004
By Frank Nxumalo
Johannesburg - Eskom had written off more than R600 million it had invested in the fixed-line second network operator (SNO) because of the unending delays in licensing the telecoms competitor, it emerged yesterday.
The investment had been made by Eskom Enterprises, the electricity utility's commercial subsidiary.
A R154 million investment in Lesotho utility Mountain Communications has also been written off.
Presenting Eskom's annual results to December 2003 yesterday, chief executive Thulani Gcabashe said Eskom Enterprises had invested R748 million in the roll-out of the Fibre Optic Network, the telecommunications division formerly known as Easitel.
"The delay in the issuing of the licence to the SNO prompted the board to raise an impairment provision of R649 million against this investment. The provision will be reviewed when the licence is granted," Gcabashe said.
Gcabashe said there were "differences of interpretation of licence requirements" with Lesotho.
"But we are quite confident that we will reach an accommodation with the Lesotho government in the near future. This [R154 million] provision is related to certain network roll-out requirements in terms of the licence.
"It was considered prudent to make a provision which will be reviewed once these issues are resolved."
Public enterprises minister Jeff Radebe announced at the presentation that Eskom would spend up to R100 billion over the next five years building new power stations and recommissioning Camden, Grootvlei and Komati, the three mothballed power stations in Mpumalanga, to meet demand.
Radebe said the government had prescribed a clear developmental role for state-owned enterprises and, like others, Eskom would continue to be measured by its ability to deliver on this developmental mandate.
"Eskom has electrified another 175 396 homes, exceeding the government target of 164 107, including those of farm workers, indicating Eskom's commitment to development at grassroots level," he said.
The new power stations should come on stream by 2011 while Camden, Grootvlei and Komati, in that order, should be recommissioned by next year. Gcabashe estimated these three power stations to have a total capacity of 3.5 megawatts. The recommissioning should be completed by 2007.