JSE teams up with Eskom for grid expansion

The Johannesburg Stock Exchange (JSE) will co-host a seminar with Eskom later in September to help the power utility deal with various financing options needed to fund its crucial grid expansion programme, according to Electricity Minister Kgosientsho Ramokgopa.The minister previously said Eskom needs upwards of R210 million for the expansion. He said at a briefing on Sunday that aside from a US$8.7 billion facility that came out from the COP26, the New Development Bank, known commonly as the BRICS bank, said recently that it also had a US$3 billion financing option available for Eskom."There are a number of offers that are coming through, a number of funding and financing sources across the globe. When I was in Kenya, at the climate conference, we had conversations with multiple players who raised their hands and indicated that they are ready to finance grid expansion," Ramokgopa said."We are going to host a transmission financing seminar with potential funders sometime during the month of September. We are aggregating everyone in one room. We want to understand what are the sizes of the facilities that are available, what are the conditions that are available, and what are the structures that, in the view of financing communities, will be acceptable for them to participate."The JSE as a partner is very important, because it is a renowned credible interlocutor that can aggregate all of this interest. They have no interest but to ensure that South Africa succeeds.Flow"So we are hosting with the JSE there so that we have an appreciation of what are the broad flows of financing that is available."The seminar will also hear what the best practices were from countries that also had to deal with the same grid expansion issues.Ramokgopa said that after the seminar, a report will be submitted to Cabinet."This submission must also respond to the fact that part of the conditions of the fiscal support [from Treasury] was that Eskom should not go out and get a loan."Earlier this year, the government agreed to write off R254 billion of the power utility's debt, which is roughly at R450 billion. Ramokgopa said that there was a footnote to that, specifying that the minister of finance would consider any exceptional circumstances."So it is not necessarily out of the picture that you can have a consideration for additional financing. But I think it's up to us to illustrate if indeed, we are of the opinion that Eskom must be given that opportunity. We simply need to make the case."It must in part also respond to what the private sector is saying, otherwise, you are unlikely to attract any significant amount of interest." –Fin24

JSE teams up with Eskom for grid expansion

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