http://www.finance24.co.za/Finance/Companies/0,,1518-24_1608182,00.html?kps=193
R165bn for Eskom, Transnet
20/10/2004 18:27 - (SA)
Cape Town - The government is to invest R121bn into expansion projects in Transnet and Eskom, Public Enterprises Minister Alec Erwin announced on Wednesday.
A further R23bn is expected to come from the private sector in the "energy system", and an additional R21bn within Transnet, for a total investment of R165bn into the rail, port and pipeline operations of Transnet and the electricity sector.
The investment would be over a period of five years, he told reporters at parliament after a Cabinet meeting which was attended by South Africa's nine premiers.
"We are confident we can do it, it's a very significant investment. It will certainly have an impact on our growth," he said.
A departmental statement distributed at the briefing referred to Eskom's plans for new capacity construction, and said current estimates were that about R107bn would be needed between 2005 and 2009 to meet the growing energy needs.
"The Cabinet has decided that we should ask Eskom to plan to provide some 70% of that requirement. This will mean investment by Eskom of some R84bn over the next five years," the department said.
The balance of R23bn was currently being reserved for possible independent power producers (IPP).
Various generation methods were being examined, including upgrades of existing plant, new coal technology greenfield plants, gas turbine, and pump plants.
In addition, the future use of the Pebble Bed Modular Reactor technology had to be factored in along with the renewable energy targets.
"However, this is a major decision for our energy system, and will begin to inject very significant investment into the economy."
SAA to be moved from Transnet
Regarding Transnet, the department said Cabinet had confirmed SA Airways would be moved off the Transnet balance sheet as soon as practically and financially possible, leaving Transnet to focus on its rail, port, and petro-pipeline core business.
The planned investment in Transnet could be divided into that which maintained and operated the system at reasonable efficiency levels, and investment that would expand the port and rail infrastructure in a way that would lead to growth, and not follow it.
"In the first phase we are concentrating on the first two categories that are sustainable on the balance sheet."
The total of this investment amounted to R37bn over the next five years, which would be funded primarily out of core business cash flows.
The capital market requirement for this Capex programme and to service existing debt would range from R2.5bn to R8bn, depending on the performance of the key operating divisions.
The investments ranged from rolling stock, locomotives, and port terminals through to port equipment, the department said.
At the media briefing, Erwin said this was a very significant investment process.
"We are confident it will have a very positive impact on our already strong economy, but essentially it is designed to very considerably enhance the efficiency, size, and capacity of our energy and transport systems," he said.
Edited by Mahap Msiza
<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">
R165bn for Eskom, Transnet
20/10/2004 18:27 - (SA)
Cape Town - The government is to invest R121bn into expansion projects in Transnet and Eskom, Public Enterprises Minister Alec Erwin announced on Wednesday.
A further R23bn is expected to come from the private sector in the "energy system", and an additional R21bn within Transnet, for a total investment of R165bn into the rail, port and pipeline operations of Transnet and the electricity sector.
The investment would be over a period of five years, he told reporters at parliament after a Cabinet meeting which was attended by South Africa's nine premiers.
"We are confident we can do it, it's a very significant investment. It will certainly have an impact on our growth," he said.
A departmental statement distributed at the briefing referred to Eskom's plans for new capacity construction, and said current estimates were that about R107bn would be needed between 2005 and 2009 to meet the growing energy needs.
"The Cabinet has decided that we should ask Eskom to plan to provide some 70% of that requirement. This will mean investment by Eskom of some R84bn over the next five years," the department said.
The balance of R23bn was currently being reserved for possible independent power producers (IPP).
Various generation methods were being examined, including upgrades of existing plant, new coal technology greenfield plants, gas turbine, and pump plants.
In addition, the future use of the Pebble Bed Modular Reactor technology had to be factored in along with the renewable energy targets.
"However, this is a major decision for our energy system, and will begin to inject very significant investment into the economy."
SAA to be moved from Transnet
Regarding Transnet, the department said Cabinet had confirmed SA Airways would be moved off the Transnet balance sheet as soon as practically and financially possible, leaving Transnet to focus on its rail, port, and petro-pipeline core business.
The planned investment in Transnet could be divided into that which maintained and operated the system at reasonable efficiency levels, and investment that would expand the port and rail infrastructure in a way that would lead to growth, and not follow it.
"In the first phase we are concentrating on the first two categories that are sustainable on the balance sheet."
The total of this investment amounted to R37bn over the next five years, which would be funded primarily out of core business cash flows.
The capital market requirement for this Capex programme and to service existing debt would range from R2.5bn to R8bn, depending on the performance of the key operating divisions.
The investments ranged from rolling stock, locomotives, and port terminals through to port equipment, the department said.
At the media briefing, Erwin said this was a very significant investment process.
"We are confident it will have a very positive impact on our already strong economy, but essentially it is designed to very considerably enhance the efficiency, size, and capacity of our energy and transport systems," he said.
Edited by Mahap Msiza
<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">