Eskom as­sured of ac­cess to fund­ing

CityPress - - Business -

Trea­sury was look­ing to ex­tend the R350 bil­lion Guar­an­tee Frame­work Agree­ment (GFA), which ex­pires in March, be­cause the com­ple­tion of Eskom’s ma­jor projects – such as the Kusile and Medupi power sta­tions – had taken longer than ex­pected, Fuzile said.

“The pro­gramme is go­ing to take longer, so it is now nec­es­sary to ex­tend [the guar­an­tees],” he added.

“All the debt raised via the guar­an­tees will re­main guar­an­teed for the full term.

“We may ask Eskom a few ques­tions, but they would never be of a na­ture that the guar­an­tees won’t be ex­tended. [The length of the ex­ten­sion] is go­ing to de­pend on many things, in­clud­ing how long the build pro­gramme is go­ing to take.”

Ear­lier this month, rat­ings agency Fitch down­graded Eskom’s credit rat­ing, stat­ing: “If the GFA is not granted, this would in­tro­duce un­cer­tainty to the bor­row­ing plan and Eskom could face a fund­ing cri­sis, con­sid­er­ing its cap­i­tal ex­pen­di­ture plans.”

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