Oct 13, 2009
Daily podcast – October 13, 2009Back
Johannesburg|Eskom|Industrial Development Corporation|SEW Eurodrive|South Africa|ZAR|Jacob Maroga|Rob Davies
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Tuesday, October 13, 2009.
From Creamer Media in Johannesburg, I'm Shannon de Ryhove.
Making headlines today:
South Africa's financially stressed power utility Eskom says the appropriate price of power should be 80 to 88 c/kWh rather than the current level of 33 c/kWh.
In spite of these increases, Eskom will still face funding gaps of 2,1-billion, 32,7-billion and 28,5-billion-rand between 2010/11 and 2012/13.
One option is for an immediate 146% rise in 2010/11 to 75 c/kWh real, 83 c/kWh nominal. The second and preferred model, in Eskom's view, is for a smoothed trajectory, which will require increases of 45% a year for three years.
Without allocating funding for independent power producers, the increases would be 42,8% for the three-year period.
Maroga says that it's hoping for a tariff determination early next year, for implementation for Eskom customers from April 1, 2010, and for the municipalities from July 1, 2010.
The development finance institution expects to approve 70-billion-rand in equity and loan finance over the next five years. It has indicated previously that it'll need to raise its gearing from around 6-billion-rand currently, to nearly 25-billion-rand by 2013. In so doing, its debt-to-equity position would move from around 8% to 35%.
In a recently published tender advertisement, the IDC formally requests proposals for a "lead arranger" to establish a domestic medium-term note.
The State-owned group has indicated that up to 14-billion-rand will be raised through the issuance of bonds, at a rate of between 3-billion and 4-billion-rand a year between 2010 and 2013. Its first issuance is likely during 2010.
Vodacom says that a dramatic reduction of cellphone charges will disrupt the country's economy and communications sector.
That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.
Edited by: Shannon de Ryhove© Reuse this Comment Guidelines
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