Eskom flush with R40bn
Molefe sends out ‘liquidity message’ ESKOM has more than R40-billion in cash in the bank, which will hopefully send a powerful liquidity message to ratings agencies, chief executive Brian Molefe said. The power utility will also be sitting with surplus electricity in about five years, which will be sold to the rest of Southern Africa in US dollars to raise revenues. This was according to Molefe and Public Enterprises Minister Lynne Brown, who gave an update yesterday on the R25-billion Ingula Storage Pump Scheme in the Drakensberg.
The Ingula scheme is expected to be ready early next year and will provide four underground turbines, which will generate 333MW each. Molefe said while Eskom was improving and performing well, “we will conquer or be conquered as a team”. “One of the things rating agencies complained about with Eskom is liquidity. So we just want to send a powerful liquidity message,” Molefe said, referring to the R41-billion. He said in five years’ time, South Africa would have surplus electricity. “That can either be used to grow the economy or sold in Southern Africa,” Molefe said. Brown said the Eskom board had been stabilised and was doing well in exercising its fiduciary duties. “The important issue for me is that the efficiency within the company is improving,” she said. “The board and management have been able to demonstrate sound performance and governance with most if not all the executive roles filled. “The chief executive officer has assured me there is no prognosis for load-shedding over the winter months.” Brown said she had always maintained that the turnaround of Eskom hinged on leadership stability and disciplined maintenance execution. The Ingula hydro pump scheme is located on the escarpment of the Little Drakensberg. It consists of the upper Bedford Dam and a lower Bramhoek Dam, which are 4.6km apart and connected by waterway tunnels. The underground powerhouse has four 333MW reversible pump-turbine units. The water is pumped to the upper dam in non-peak periods and released to generate electricity.
Once it comes into full operation, the scheme will add a total of 1 332MW to the grid. Molefe said the construction was a year ahead of target. “We are relying on machines number two and three to help us through winter and allow us to use less diesel,” he said.
Delays since the project started in 2008 had escalated its cost from the initial projection of R17-billion to R25-billion. Molefe said Eskom was working hard to conclude its construction of the Medupi and Kusile power stations. The two power stations and Ingula will add about 11 000MW to the grid on completion in about five years’ time. He said South Africa would then have enough electricity for economic growth and perhaps even a surplus to sell to its neighbours.
