Jan 23 2008 09:08 AM
Louise Cook
Johannesburg - In a bold step to ensure quick cash for alternative power-generating schemes and help fight the Eskom fiasco, energy operator CEF announced on Wednesday that it was flying critical parts into SA to roll out solar-powered traffic lights at key intersections in major centres around the country.
It went on to promise fat tax rebates to investors, including municipalities, that sink money into the scheme.
This follows a week of erratic and ongoing power cuts in many parts of the country that threatened to sink development projects, stymie investment and saw Eskom's top management and government officials - including President Thabo Mbeki - gather in a bid to keep the country's power running.
Work on the CEF's planned installations are expected to start in the next few weeks in Johannesburg, eThekwini, Tshwane, Nelson Mandela Bay and Nelspruit and follows along the lines of a similar project that was successfully started in Cape Town last year. R40m was raised from undisclosed private and public investors to kick-start the plan.
According to CEF CEO, Mputumi Damane, promises of huge amounts of money are pouring in "a number of agreements are being finalised with key private sector institutions who (sic) we will name in due course, once the formalities related to the approval and transfer of funds have been concluded," he says in a statement.
CEF (Pty) Ltd is a private company that controls entities such as PetroSA, iGAS, Petroleum Agency SA, Oil Pollution Control SA, the Strategic Fuel Fund Association, African Exploration Mining and Finance Corporation (Pty) Ltd and the South African National Energy Research Institute (Saneri).
Damane says ultimately, at least R100m is expected to be generated in this way. "Due to urgency, important parts needed for the installations are being flown in rather than the usual procedure of shipping it in. More than 2 000 critical traffic intersections have been identified in Johannesburg alone. Key areas include the Grayston Drive intersection, which is one of the main arteries leading into the central Sandton business precinct."
On the issue of incentives to investors, he reckons investors are in for significant rewards.
"Not only will they be helping to alleviate the power crisis in the country, but they could also lodge claims of up to 150% of the invested amount from the South African Revenue Service, with the submission of their next tax return."
