Clarity regarding Eskom funding solution

To clarify recent confusion and inaccurate reporting on the issue of Eskom funding, please note the following:

The hybrid funding solution to enable Eskom to continue with its Build programme includes:

• Existing guarantees - R176 billion
• New guarantees (as announced on 28 Oct 2010) - R174 billion
• Proposed new equity - R20 billion

Last week's Cabinet statement was clear on the process: "Cabinet noted and supported a hybrid funding solution to enable Eskom to continue with its Build programme to ensure the security of supply of energy."

The proposed equity injection has still to go through the normal budgetary process, including the submission of the funding request to the Minister's Committee on the Budget which makes recommendations to the Cabinet. Once approved by Cabinet, provision for allocation of the R20 billion will be made and announced in the Budget in February. 

Statement issued by National Treasury, November 16 2010

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